New RMS hurricane model allows for more user defined options
Risk modeller Moody’s RMS has launched an updated hurricane model which, it says, is the most up to date available on the market.
Version 23 includes updates to existing models for core perils and for climate change views and includes enhancements to geocoding, model flexibility, data framework, security, and more, the company said.
Jeff Waters, the product manager for Version 23, said the model included data from hurricanes leading up to Hurricane Ian in 2022, and had benefited from reconnaissance teams being able to get up to date information on the storm which could be put directly into the model.
“Version 23 has updated a number of components of the model, specifically our vulnerability component which is one of the bigger drivers of change because we have updated aspects of the damage curves and relativities,” he said.
New functionality has been added to the model including more user-defined options to reflect dynamic patterns in the marketplace, for example changes in inflation rates. Users can add non-modelled risks such as elements of social inflation which can be used to see what impact it might have on a company’s finances, Waters said.
Another example would be the impact of having several catastrophes occur in quick succession which could lead to costs for adjustors and other support personnel adding to overall costs.
The model has updated the effects of water infiltration on buildings, which has become a particular issue when hotels and apartment complexes have been flooded.
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