AIR Worldwide's latest U.S. hurricane model, Version 12.0, has been approved and certified by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM).
The Florida commission, which evaluates and certifies computer models and other actuarial methodologies for hurricane losses, has approved models in previous years for firms such as Applied Research Associates Inc., EQECAT Inc. and Risk Management Solutions Inc.
The commission evaluates a model based on general, meteorological, actuarial, statistical and computer standards and tries to capture the performance of a model in each of these areas, said Randy Dumm, chairman of FCHLPM. The model must pass all standards successfully in order to become certified, he added.
AIR, the Boston-based catastrophe modeling firm, had the first hurricane model to meet the standards of the FCHLPM in 1996 and has been certified for use in the Florida residential ratemaking every year since, said Kevin Long, AIR spokesman.
"Certification to these standards provides AIR model users with increased confidence for employing our models for all catastrophe risk management activities," said Mr. Long.
AIR said its latest U.S. hurricane model includes the latest meteorological understanding on hurricane structure, a basin-wide catalog, a model domain including 29 states and the District of Columbia, and more detailed modeling of spatial and temporal variations in vulnerability.
