California issues landmark rules to improve home insurance market

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California's Department of Insurance released rules meant to encourage insurers to write more policies in high-fire-risk areas by using computer modeling.

Landmark regulations intended to encourage insurers to write more policies in risky wildfire neighborhoods through the use of complex computer models were released Friday by the state. Under new rules intended to stabilize California's troubled home insurance market, insurers will be able to set rates by drawing on a wide swath of meteorological, geographic and other data in establishing rates, rather than largely relying on historical losses.

The department also said it has hired an expert in a newly created position to oversee the process of 'examining model integrity and ensuring public review.

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