Aon’s updated Florida hurricane model has received certification from the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) for use in insurance ratemaking.  

This model was crafted by the company’s Impact Forecasting team and incorporates the latest hurricane records, sea-surface temperature data and research to provide insurers with a perspective on risk. 

This move follows the previous certification of Aon’s US flood model by the FCHLPM.  

The hurricane model will be included in Impact Forecasting’s ELEMENTS 18.1 platform. 

Aon Impact Forecasting regulatory compliance lead David Colbus said: “This certification highlights our continued innovation in the modelling space, and our drive to gain a better understanding of natural perils.  

“The updated Florida hurricane model is an example of a collaborative effort within our firm that has resulted in a leading solution to quantify and manage risk, ultimately helping our clients to make better business decisions.” 

The model features an event set that evaluates wind hazard throughout a hurricane’s life cycle and its vulnerability component is supported by claims data from recent hurricane seasons. 

Insurers in Florida can now utilise this certified model to better understand and manage the risks associated with hurricanes, the company said. 

Radovan Drinka, model development lead for US hurricanes at Aon’s Impact Forecasting, said: “As part of this update, we improved the underlying statistical framework in the area of claims and vulnerability, which has led to a more accurate sampling of storm losses.  

“Meanwhile, through propriety and academic research, we bring clarity and confidence to hurricane analysis in order to help our clients reduce volatility across their portfolios and build business resilience.”