A hurricane modeling firm–once criticized for creating a flawed storm-loss scenario that insurers used to hike coastal property rates–said a revised model has now been approved by Florida authorities.

Newark, Calif.-based Risk Management Solutions (RMS) announced that the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) re-certified the RMS Hurricane model for use in establishing residential insurance rates in the state of Florida.

The certified version–replacing one that was rejected in May–estimates hurricane activity rates for the next five years based on a straight historical average of the number of hurricanes recorded since 1900, as required by FCHLPM standards, RMS said.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.