Florida Commission Accepts First Hurricane Model Under New Standards

The Florida Commission on Hurricane Loss Projection Methodology has accepted a new loss model from Karen Clark & Co., the first to meet the commission’s latest standards.

KCC’s Version 5.0 incorporates two more years of climate and hurricane data and includes several upgrades, such as secondary building characteristics, new vulnerability functions for appurtenant structures, and updated vulnerability functions for manufactured homes, the firm said Thursday. The update also supports modeling of law and ordinance coverage and roof actual cash value endorsements.

The modeling is designed to help insurance carriers and reinsurers on pricing, underwriting, and risk management decisions, KCC said in a statement.

The hurricane methodology commission was established in 1995 to review and audit loss models. The commission currently accepts models from seven vendors, including Applied Research Associates, CoreLogic, Florida International University’s public model, Impact Forecasting, KCC, Risk Management Solutions, and Verisk. The certificates for hurricane models accepted under the commission’s 2021 standards are due to expire in November, the commission has indicated.

The KCC hurricane model certification comes nine months after the commission accepted three new flood models: one from Karen Clark, one from Aon’s Impact Forecasting and one being a public model developed by researchers from eight universities.

Topics
Catastrophe
Natural Disasters
Florida
Hurricane