Karen Clark & Company Flood Model Certified by Florida Commission on Hurricane Loss Projection Methodology
BOSTON--(BUSINESS WIRE)--Dec 15, 2020--
Karen Clark & Company (KCC) today announced that the KCC Flood Model has been certified by the Florida Commission on Hurricane Loss Projection Methodology. The KCC model is the only flood model that has been found acceptable by the Commission.
“We are pleased to deliver to the market the first flood model that has been independently reviewed and certified by an external team of experts,” said Glen Daraskevich, KCC Senior Vice President. “The Florida Commission review process includes verifying a comprehensive set of standards covering all of the meteorological, hydrological, hydraulic, engineering, and actuarial aspects of the model. Each flood model standard was verified through a rigorous audit process extending over a several month period.”
The KCC Flood Model covers coastal flooding from storm surge and inland flooding from extreme rainfall. The model includes a catalog of over 100,000 flood intensity footprints created and stored at 30-meter resolution along with thousands of vulnerability functions accounting for important property features, such as building construction, height, first floor elevation, and other secondary characteristics.
“The private market for flood insurance is relatively small, and most of the residential properties that are currently insured are covered by the National Flood Insurance Program (NFIP),” said Joanne Yammine, KCC Director of Actuarial Services. “The KCC Flood Model is the first flood model to be found acceptable for ratemaking in the state of Florida so insurers can start writing flood business with higher confidence and at adequate rates. The KCC model can be used to price and underwrite commercial as well as residential policies.”
The KCC Flood Model indicates that the average annual losses from currently insured policies is over $1 billion in the state of Florida. Insured losses from large events can exceed $30 billion.
“The inland flood peril accounts for both riverine and surface flooding,” said Yuanhao Zhao, KCC Senior Hydrologist. “Surface water is modeled using the cellular automata technique because this advanced method captures the physics of water flow along with the temporal evolution of surface flooding. The KCC model accounts for variations in soil properties, and both flow and depth for riverine flooding have been extensively validated with all available USGS stream data.”
“The storm surge peril is coupled with KCC’s high resolution hurricane model,” added Daniel Ward, KCC Senior Atmospheric Scientist. “For every five-minute time step along the hurricane track, the peak storm surge is calculated along the coast accounting for local bathymetry, storm track direction, and coastal features such as inlets and bays. Inundation is calculated using land use and digital elevation data and incorporates mitigation features, such as sea walls and levees.”
“Private flood insurance presents a significant growth opportunity for (re)insurers,” said Karen Clark, KCC President and CEO. “But in order to write this business, the market requires advanced models that are credible and transparent and can be properly verified. KCC is very pleased to be delivering such a model to the industry, further demonstrating our commitment to innovation, scientific advancement, and accurate catastrophe models.”
About Karen Clark & Company
Karen Clark & Company (KCC) provides advanced models, innovative software, and comprehensive consulting services for deeper insight into catastrophe risk. KCC professionals are globally recognized experts in catastrophe modeling and risk management who work with (re)insurance company executives to enhance business strategies, competitive advantage and financial results. KCC catastrophe models currently cover tropical cyclones, extra-tropical cyclones, severe convective storms, floods, and earthquakes in over 20 countries. For more information, please visit www.karenclarkandco.com.
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CONTACT: Daniel Abramson
KEYWORD: UNITED STATES NORTH AMERICA FLORIDA MASSACHUSETTS
INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE TECHNOLOGY INSURANCE CONSTRUCTION & PROPERTY PROFESSIONAL SERVICES SOFTWARE OTHER SCIENCE SCIENCE RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: Karen Clark & Company
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PUB: 12/15/2020 07:00 AM/DISC: 12/15/2020 07:01 AM