Florida Commission on Hurricane Loss Projection Methodology Reviews Loss Model Submissions; Corrections Due January 7, 2011

The Florida Commission on Hurricane Loss Projection Methodology (“Commission”) reviewed four hurricane loss projection models during its meeting today, December 14, 2010, and found minor deficiencies in each.  Commission members voted unanimously to allow respective corrections to be submitted by January 7, 2011. 

The following four companies submitted models under the Commission Standards and Acceptability Process (“Standards”) for 2011:

• Applied Research Associates, Inc. (“ARA”) – HurLoss Verion 5.0
• EQECAT, Inc. (“EQE”) – EQECAT Florida Hurricane Model 2011
• Florida Public Hurricane Loss Model (“FPM”) – Version 4.0
• Risk Management Solutions, Inc. (“RMS”) – RiskLink 11.0

Commission members considered each model separately and discussed the applicability of the Standards, categories of which are:  General, meteorological, vulnerability, actuarial, statistical and computer-related.

Portions of the Standards in which the models were found to be deficient are listed by modeler below: 

ARA:  Actuarial, statistical
EQE:  General, meteorological, statistical and computer
FPM:  General, actuarial and statistical
RMS:  General and statistical

Because of the imminent holiday season, Commissioners postponed the submission date for the corrections to January 7, 2011.  

In other business, the Commission briefly discussed on-site visits and how new Commissioners would be added to the list of those authorized to attend future visits.  

Commissioners also agreed to postpone consideration of a suggestion by one of the modelers for a summer Commission workshop topic.

Other discussion focused on a query by RMS regarding the taping of Commission meetings that are closed to the public and whether these proceedings would be documented both in writing and with audio.  Expressing concern with the potential release of proprietary information on any audio tapes, the RMS representative also requested a copy of the procedure followed by the State Board of Administration (“SBA”) to preserve the security of the recordings.  

The RMS representative was instructed to make a public records request to determine how long the SBA keeps such records on file.

With no further business before the Commission, the meeting was adjourned.

To view the meeting agenda, click here.

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