Catastrophe risk modeling firm RMS has announced the approval of its North Atlantic Hurricane Models by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM).
The certification applies to Version 21.0 hurricane models available on RiskLink 21.0 and the Risk Modeler application on its open cloud platform RMS Risk Intelligence.
Enhancements to version 21.0 of the RMS North Atlantic Hurricane Models include new medium-term rate forecasts for 2021-2025 informed by data-driven updates, including the latest historical Atlantic Basin hurricane data through the record-breaking 2020 season.
Also added are vulnerability updates in the Caribbean based on new claims data and learnings from the impactful 2017-2018 seasons.
“As the 2021 hurricane season is now underway, it’s important to remember that hurricane is one of the biggest drivers of annual insured losses throughout the North Atlantic Basin,” said Mohsen Rahnama, chief risk modeling officer and executive vice president, models and data.
“Version 21.0 of the RMS North Atlantic Hurricane Models incorporates important learnings and insights from the 2017 and 2018 hurricane seasons, including the most new claims data and event rates informed by data from the most recent 2020 season.
These advantages help give (re)insurers a more comprehensive view of risk applicable at the point of underwriting through to portfolio management and risk transfer decisions.”
Matthew Nielsen, senior director, regulatory affairs, RMS, added, “Obtaining FCHLPM certification is a key milestone in the development and go-to-market process of our hurricane models.
“It underscores the continued quality and reliability of our North Atlantic Hurricane Models, based on industry-leading science, data, methods, engineering, and software.
“The certification also has implications for other regions, as many other states affected by hurricanes look to Florida’s model certification process as a first step for their own state approvals.”