Florida Commission on Hurricane Loss Projection Methodology Meeting Report–March 21

On Friday, March 21, 2008, the Florida Commission on Hurricane Loss Projection Methodology (“Commission”) held a meeting. To view the complete agenda, click here.

The loss projection model reviewed by the Commission was RiskLink Version 6.0b, submitted by Risk Management Solutions (“RMS”).

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 (“FHCF”) Advisory Council
• Terry Butler, Consumer Advocate from the Florida Department of Financial Services
• Howard Eagelfeld, Actuary from the Florida Office of Insurance Regulation
• Jack Nicholson, FHCF Senior Officer
• Scott Wallace, Executive Director of Citizens Property Insurance Corporation

Also in attendance were the professional review team and FHCF members.

Before the Commission meeting, the RiskLink model was reviewed by a team of professionals to determine if the following standards were met:

• General
• Meteorological
• Vulnerability
• Actuarial
• Statistical
• Computer

Deficiencies in the general, actuarial and computer standards were found by the professional team in connection with their review. Commissioner Larry Johnson also found deficiencies in the model’s statistical standard.

These deficiencies will be corrected by April 1, 2008, so that the model’s trade-secret components may be reviewed for acceptability during a closed meeting.

Models reviewed during the previous Commission meeting currently are being evaluated during closed meetings, after which their deficiencies will have to be corrected.

Public meetings to review the models further for acceptability will be held from May 20-22, 2008.

 

Should you have any questions or comments, please do not hesitate to contact this office.