The SC Dept. of Insurance has issued Bulletin 2014-03, which applies to all property insurance rate filings made in South Carolina beginning June 1, 2014. It deals primarily with the use of catastrophe models for property insurance rates. Most of the changes summarized here were already being implemented by the DOI.

The SCDOI does not accept historical claims data for hurricanes as the sole basis for estimating expected hurricane loss costs in rate development. Also, the DOI does not allow for the "double counting" of losses resulting from Tropical Storms and Tropical Depressions. Companies are required to provide information on models, and any adjustments to their outputs, as outlined in the DOI's Actuarial Exhibits.

Four CAT models have been approved for use in S.C.:

• AIR (multiple versions)
  
• ARM (multiple versions)
  
• EQECAT (multiple versions)
  
• RMS