Florida Commission on Hurricane Loss Projection Methodology Meeting Report: September 15 and 16

Sep 23, 2009

The Florida Commission on Hurricane Loss Projection Methodology (“Commission”) met September 15, 16 and 17.  The first two days of the meeting were devoted to the review and revision of Commission rules and standards for hurricane loss models, as well as the Commission’s Report of Activities as of November 1, 2009.

September 17 was exclusively dedicated to the Commission’s statutory Windstorm Mitigation hearing, a summary of which can be viewed by clicking here.

During the first and second meeting days, the Commission considered:

  • Changing the Commission’s mission statement to reflect its role in reviewing models for their ability to project probable maximum loss levels;
  • Implementing legislation that provides for loss models to be certified every two years (during odd-numbered years), rather than every year and changing the date for submission of new models to November 15, 2010;
  • Implementing legislation providing for the Commission to hold public hearings on windstorm mitigation discounts, credits, other rate differentials and appropriate reductions in deductibles;
  • Adding the term “Commercial Residential Property” to loss model requirements, which is defined as condominium associations, cooperative associations and apartment buildings. The definition also would include common elements of a homeowners’ association;
  • Calculating loss projections at the geocode level, rather than by ZIP code in order to account for occasional large differences in projected losses by ZIP code;
  • Instituting an appeal process for models that were originally rejected;
  • Adding new ethics language applicable to communications between modelers, staff and Commissioners; and
  • Inserting new and more extensive language relating to meteorological standards.


Input Sought on Proposed Changes to Acceptability Process

The Commission will be seeking public comment on several proposed changes to the Acceptability Process and Standards, including:

  • Models would represent the vertical profile of damaging winds for commercial structures;
  • Models would be subject to review in order to ensure that loss projections for wind-related damage have not been affected by that of damage due to flood or storm surge;
  • Modelers would be required to notify the Commission if they desire their loss models to be reviewed for both personal residential and commercial residential standards; and
  • Commissioners would first review loss models for personal residential policy compliance and then for commercial residential policy compliance.


To view materials for this meeting that include the proposed changes, click on the document hyperlinks below:


Should you have any questions or comments, please contact Colodny Fass.


To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com