Karen Clark & Company (KCC), a provider of catastrophe risk models and analytics to the insurance industry, has announced that its US Hurricane Reference Model Version 5.0 has been officially certified by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM).
KCC is the first modelling firm to earn certification under the commission’s updated standards. The latest version of the model features several notable upgrades.
These include expanded data on secondary building characteristics, refined vulnerability functions for both manufactured homes and related structures, and improved capabilities to model law and ordinance coverage as well as roof actual cash value (ACV) endorsements.
“Version 5.0 of the KCC Hurricane Model includes various advancements to vulnerability, which reflect how various building characteristics can withstand hurricane conditions,” added Dr. Shaoning Li, Principal Engineer.
“Incorporating these functions into the model ensures that the underlying assumptions and methodologies reflect the latest residential structure inventories, building codes, and hurricane mitigation strategies.”
Version 5.0 also includes two additional years of climate data, helping to maintain the model’s alignment with the most current patterns in hurricane activity influenced by climate change.
These model improvements reinforce KCC’s commitment to equipping re/insurers with accurate, scientifically grounded information for pricing, underwriting, and risk evaluation.
“KCC is pleased to have completed the FCHLPM certification process, which remains the industry’s benchmark for evaluating model assumptions and methodologies,” commented Glen Daraskevich, KCC Senior Vice President.
“The rigorous process gives insurers and regulators confidence that the KCC model meets the highest scientific, technical, and actuarial standards, particularly as the risks associated with hurricanes continue to evolve.”
Since its founding in 1995, the Florida Commission on Hurricane Loss Projection Methodology has played a key role in reviewing and validating the models used to estimate hurricane-related insurance losses across the state.
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