6 June 2023Analysis

Moody’s RMS hurricane model gets green light from Florida

Moody’s RMS has announced that version 23 of its RMS North Atlantic Hurricane Models was approved by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) on June 01, 2023, for use in residential rate filings with the Florida Office of Insurance Regulation.

The certification applies to version 23 hurricane models available on RiskLink and the Risk Modeler application on the Moody’s RMS Intelligent Risk Platform. Informed by new industry loss and claims data, research, and insights from recent seasons, Moody’s RMS said that the updated version 23 hurricane models allow it to continue to provide the re/insurance market with the most comprehensive view of the hurricane risk landscape.

The models include new updated data and learnings from major events over the last two years:

Nearly $80 billion in new industry loss data, including Hurricane Ida (2021) and Hurricane Ian (2022)

More than $6.5 billion in new detailed claims data, including more than $3 billion in new residential claims data outside of Florida, more than $2 billion in new US commercial claims, and more than $1 billion in data from Puerto Rico

Insights into structure and roof performance from field reconnaissance after recent events, including hurricanes Irma (2017), Michael (2018), and Ian (2022)

Matthew Nielsen, senior director, regulatory affairs, Moody’s RMS, said: “We are proud to be the first risk modeler to gain FCHLPM approval under the newest standards. Obtaining FCHLPM certification underscores the continued quality and reliability of our North Atlantic Hurricane Models, based on industry-leading science, data, methods, engineering, and software.”

The new version 23 will include updates to existing models for core perils and for climate change views and includes enhancements to geocoding, model analysis flexibility, data framework, security, and more.