The Florida Hurricane Damage Prediction Methods Committee recently accepted the first batch of hurricane damage models submitted by Karen Clark & Co. (KCC) and Cotality that meet the latest standards. Version 5.0 of KCC has added two years of climate and hurricane data, and upgraded the assessment methods for secondary building characteristics, ancillary structure vulnerability functions, and prefabricated houses. Cotality (formerly CoreLogic) said this is the 20th consecutive year that its model has been approved by the committee. This model is designed to assist insurance companies and reinsurance companies in optimizing pricing, underwriting and risk management decisions.
The Hurricane Method Committee was established in 1995 and is responsible for reviewing and auditing loss models. Currently, it accepts models from seven suppliers. Under the state law of 2023, property insurance companies can adopt multiple models approved by the committee instead of the previously mandatory single model. This change is aimed at addressing the industry’s concerns that a single model might distort rate predictions. The committee’s 2021 standard-certified hurricane model certificate will expire in November this year. The approval of this new model marks a further upgrade for Florida in the field of disaster assessment.
This hurricane model certification is another move by the committee following the approval of three new flood models nine months ago. Previously, the Florida legislature had proposed transferring the modeling project of Florida International University (FIU) to Florida State University (FSU) for management, but withdrew the proposal after the committee opposed it. This series of actions highlights Florida’s continuous efforts in improving disaster prediction and insurance research, aiming to enhance disaster resilience and the stability of the insurance market through scientific models.
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