Catastrophe risk modeller Moody’s RMS has announced that version 23 of its North Atlantic Hurricane Models has received approval from the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM).
This certification allows the use of these models in residential rate filings with the Florida Office of Insurance Regulation. Moody’s RMS is known for providing the (re)insurance market with a comprehensive view of the hurricane risk landscape.
The updated version 23 models incorporate new industry loss and claims data, as well as insights from recent major events. This includes approximately USD $80 billion in new industry loss data, including Hurricane Ida (2021) and Hurricane Ian (2022), and over USD $6.5 billion in detailed claims data.
These models also benefit from field reconnaissance data on structure and roof performance from hurricanes Irma (2017), Michael (2018), and Ian (2022).
Matthew Nielsen, Senior Director of Regulatory Affairs at Moody’s RMS, expressed pride in being the first risk modeler to receive FCHLPM approval under the latest standards. He emphasised the models’ quality, reliability, and adherence to industry-leading science, data, methods, engineering, and software.
Version 23 introduces various updates, including enhancements to core perils, climate change views, geocoding, model analysis flexibility, data framework, and security.
Moody’s RMS will release the models simultaneously for both on-premises and hosted clients, ensuring accessibility across their Intelligent Risk Platform™ applications.
The key updates in version 23 encompass geocoding updates in 37 countries, U.S. and Caribbean industry exposure databases and loss curves, a Global Post-Loss Amplification (PLA) Scale Factor for Detailed Loss Model (DLM) analyses, improvements in the U.S. Inland Flood HD Model, and enhancements in security measures.
Jeff Waters, Staff Product Manager of Moody’s RMS North Atlantic Hurricane Models, highlighted that the version 23 release strengthens their suite of hurricane modeling tools and data solutions, reflecting the most mature and robust view of the evolving hurricane risk landscape.
The updates incorporate new hurricane activity and loss data, analysis of detailed claims data, building code information, and both internal and external research.
Version 23 of the North Atlantic Hurricane Models introduces revised long-term and medium-term event rates across the entire North Atlantic Basin, hazard updates, historical event reconstructions, significant vulnerability enhancements, geocoding revisions, updates to specialty lines, enhancements to the building inventory database, and updated post-event loss amplification factors.
Moody’s RMS also introduces new software functionality exclusive to the North Atlantic Hurricane Models, enabling users to incorporate non-modeled sources of loss directly within the model framework.
This functionality allows better reflection of dynamic market conditions and the impact of non-modeled factors on industry and client losses.
The FCHLPM certification for version 23 of the RMS North Atlantic Hurricane Models will remain valid until November 1, 2025. The release of version 23 is scheduled for June 14, 2023, and will be available on both RiskLink® and Risk Modeler™ platforms.