RMS North Atlantic Hurricane Models Approved by Florida Commission
NEWARK, Calif. -
July 02, 2015 -
RMS, the world’s leading catastrophe risk management firm, today announced that version 15.0 of its RMS® North Atlantic Hurricane Models has been certified by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) for use in residential rate filings with the Florida Office of Insurance Regulation. Certification for the hurricane models was provided on June 30, 2015, and is valid until September 2017.
“Certification by the Florida Commission validates the technical integrity of the science, engineering, actuarial methodology and software of our North Atlantic Hurricane Models, and is an important milestone in both the development and usage of the models,” said Michael Young, senior director, model product management.
RMS released version 15.0 of its North Atlantic Hurricane Models in March this year. The models include updates to the long-term rate set to comply with current HURDAT data, a new medium-term rate forecast for 2014-2018, updated satellite imagery for Florida to capture recent land-use changes and updates to vulnerability across several lines of business and regions.
The version 15.0 models also include improved coastline definitions to support wind-related underwriting, and new functionality to manage coastal flood risk following an analysis of nearly $3 billion in claims data from Hurricane Irene (2011) and Superstorm Sandy (2012). The new surge modeling capabilities enable quantification of flood loss based on the total value of contents stored in basements and number of basement levels in a building. Location-specific content triggers for business interruption losses are also now included.
RMS models and software help financial institutions and public agencies evaluate and manage catastrophe risks throughout the world, promoting resilient societies and a sustainable global economy.