Florida Commission on Hurricane Loss Projection Methodology Meeting Report: Mar. 12
Mar 12, 2008
On Wednesday, March 12, 2008, the Florida Commission on Hurricane Loss Projection Methodology (“Commissionâ€) held a meeting to discuss loss model submissions. To view a copy of the complete agenda, click here.
The meeting was called to order by Chairman Randy Dumm, insurance expert from Florida State University, with the following members in attendance:
- Vice Chairman Larry Johnson, Actuary from the Florida Hurricane Catastrophe Fund (“FHCFâ€) Advisory Council
- Kristen Bessette, Actuary from Property and Casualty Industry
- Terry Butler, Consumer Advocate from the Florida Department of Financial Services
- Howard Eagelfeld, Actuary from the Florida Office of Insurance Regulation
- Sneh Gulati, Statistics Expert from Florida International University
- Jack Nicholson, FHCF Senior Officer
- Scott Wallace, Executive Director of Citizens Property Insurance Corporation
- Hugh Willoughby, Meteorology Expert from Florida International University
Meteorologists, structural engineers and actuarians from companies that submitted loss projection models were also in attendance.
The following loss projection models were submitted:
- AIR Worldwide Corporation (“AIRâ€) submitted the Atlantic Tropical Cyclone Model, Version 10.0
- Applied Research Associates, Inc. (“ARAâ€) submitted the HurLoss Model, Version 4.1
- EQECAT, Inc. (“EQEâ€) submitted the USWIND® 5.13 model
- Florida Public Hurricane Loss Model (“FPMâ€), version 2.7
Before the Commission meeting, each model was reviewed by a team of professionals to determine if the following standards were met:
- General
- Meteorological
- Vulnerability
- Actuarial
- Statistical
- Computer
The models and findings were reviewed by the Commission, and a vote was taken to continue review of the submission models subsequent to the correction of deficiencies (if any), at the next scheduled Commission meeting on March 21, 2008. Each model will also be reviewed for acceptability during a closed meeting, at which trade-secret model components will be discussed.
The following standards deficiencies were found in the models below:
- AIR—The professional team found no deficiencies in this model, however Commissioner Eagelfeld found deficiencies in its actuarial standards
- ARA—The professional team found deficiencies in ARA’s general and meteorological standards; Commissioner Eagelfeld found actuarial deficiencies
- EQE—The professional team found deficiencies in EQE’s meteorological, vulnerability and actuarial standards
- FPM—The professional team found deficiencies in FPM’s general, meteorological, vulnerability, actuarial, statistical and computer standards
Should you have any questions or comments, please do not hesitate to contact this office.