The fundamental shift in rating methodology from historical loss costs to catastrophe modeling for windstorm coverage calls into question the accuracy of rates developed using rating territories. Using premiums and modeled average annual loss (AAL) estimates from Citizens Property Insurance Corporation (Citizens) in Florida, this article analyzes the use of distance to coast (DtC) as a rating variable in providing coverage for the windstorm peril in homeowners insurance. Catastrophe models used to generate AAL costs do not rely on the same application of the law of large numbers as using historical loss costs and thus allows for more granular pricing of the windstorm peril. The results show that DtC, a rating variable that is property specific, more closely aligns premiums and AALs than territorial rating, and allows more granular pricing of the windstorm peril. More granular risk based pricing provides better incentives for homeowners regarding location and mitigation choices and may help reduce aggregate exposure to windstorm damages in the long run.

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Universities and colleges continue to face constraints related to classroom space and faculty time, thus increasing the need to consider options such as hybrid courses that can leverage available resources. This article discusses the benefits of a hybrid course, as well as its design and implementation at a large, public university. In addition, for universities that use the introduction to risk and insurance course as a significant course for attracting majors, we identify the benefits for students from the use of hybrid courses, such as the variety of materials and activities utilized, as well as the flexibility in scheduling. This information may be useful in marketing the course so that it will be immediately attractive to students.

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There is a continuing debate related to insurers’ use of direct repair programs, in which they contract with particular body shops to perform insured auto repairs according to terms agreed to by the insurers and repair shop owners. A similar debate exists related to insurers specifying the use of aftermarket crash parts instead of original equipment manufacturer parts to replace damaged vehicle components, such as door panels, fenders, and hoods. This study examines these issues from a variety of perspectives providing initial evidence that if properly used, these cost containment tools can be beneficial to consumers and insurers.