The California Department of Insurance has completed its review of the Karen Clark & Company US Wildfire Reference Model Version 3.0 under the newly established pre-application required information determination procedure. It paves the way for insurers to use the catastrophe models for rate-making.

“As the innovation leader in weather, climate, and catastrophe modelling, KCC is pleased to have been among the first modelling companies to go through the PRID process,” said Glen Daraskevich, KCC senior vice-president.

“The KCC wildfire model has already been accepted for rate filings in 24 other states, and our clients are looking forward to extending their use of the KCC model to the important state of California.”

The company said that over a series of months, the PRID Model adviser carefully reviewed each component of the KCC Wildfire Model, interviewed KCC scientists and experts, and analysed detailed test cases that allowed for a detailed scientific assessment of the model.

“To accurately model wildfires and capture the effects of high winds, vegetation, moisture, topography and other factors influencing wildfire spread, KCC scientists developed an innovative physical modelling approach that leverages high-resolution data and advanced scientific methodologies,” said Dan Ward, KCC senior director of model development.

Dr Ward said: “The KCC methodology explicitly incorporates the impacts of climate change and accounts for mitigation efforts at the property and community level to encourage the reduction of wildfire risk.”

“KCC is committed to expanding insurance availability and to supporting [California] commissioner [Ricardo] Lara’s innovative sustainable insurance strategy,” noted Karen Clark, KCC CEO.

“The PRID determination is a key milestone that empowers insurers with the advanced KCC models they require to support mitigation efforts and expand coverage in wildfire-prone areas.”