A wide variety of strongly correlated insulators ranging from intermediate
valence materials, to Kondo insulators, to underdoped high-temperature supe
rconductors display anomalous behavior in their inelastic light scattering.
The Raman response in these materials shows a low-temperature transfer of
spectral weight from low to high energy (as T is reduced), the appearance o
f an isosbestic point (a characteristic frequency where the Raman response
is independent of temperature), and a large ratio of twice the "spectral ga
p" to the "onset temperature" where the low-energy spectral weight begins t
o deplete. We illustrate how these features generically appear in the Raman
response of model systems that are tuned to lie just on the insulating sid
e of the metal-insulator transition. We solve for the Raman response in the
Falicov-Kimball model and in the Hubbard model. In the latter case, we fin
d a number of new features arise as one approaches the metal-insulator tran
sition from the metallic Fermi-liquid phase. Such behavior has not yet been
seen in experiment.