The Florida Commission on Hurricane Loss Projection Methodology has re-certified the Risk Management Solutions Hurricane model for use in establishing residential insurance rates in Florida.
This year’s review included upgrades to the RMS model that reflect new research on vulnerability of residential line dwellings, allowing for better differentiation of this class of risk based on year built.
“The 2006 Florida Hurricane model represents advances in the assessment of residential lines vulnerability, particularly in differentiating regional vulnerability across the state of Florida and the increased importance of year in construction for classifying these risks,” Mitch Sattler, RMS vice president of public policy said. “The resolution and detail of 2004 claims and exposure data for residential lines properties have demonstrated notable differences in damage based upon various eras of construction, providing substantial evidence to update this aspect of our vulnerability model.”
To be certified by the commission, RMS submits extensive documentation supporting the model’s accuracy, and is then audited by an independent panel of experts. The RMS model passed all standards set forth by the commission in its most recent Report of Activities, covering meteorology, vulnerability, actuarial, statistics, computing and other general standards that apply to models used for developing residential insurance loss costs in Florida.
Source: Risk Management Solutions
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