US Hurricane Reference Model Version 5.0 has made Karen Clark & Company the first model vendor to be certified by the Florida Commission on Hurricane Loss Projection Methodology under its latest standards..

KCC engineers and scientists have incorporated several key enhancements in the latest version of the hurricane model, including new secondary building characteristics, new vulnerability functions for appurtenant structures, and updated vulnerability functions for manufactured homes.

The update also brings full support for the modelling of law and ordinance coverage and roof actual cash value endorsements.

Shaoning Li, principal engineer, said: “Version 5.0 of the KCC hurricane model includes various advancements to vulnerability, which reflect how various building characteristics can withstand hurricane conditions.”

Dr Li said: “Incorporating these functions into the model ensures that the underlying assumptions and methodologies reflect the latest residential structure inventories, building codes and hurricane mitigation strategies.”

The latest update incorporates two additional years of climate data to remain up to date with the most recent changes in hurricane activity owing to climate change.

The company said the enhancements ensure that KCC continues to provide the industry with the most reliable information for their pricing, underwriting and risk management decisions.

“KCC is pleased to have completed the FCHLPM certification process, which remains the industry’s benchmark for evaluating model assumptions and methodologies,” said Glen Daraskevich, KCC senior vice-president.

“The rigorous process gives insurers and regulators confidence that the KCC model meets the highest scientific, technical and actuarial standards, particularly as the risks associated with hurricanes continue to evolve.”

Established in 1995, the FCHLPM reviews and audits methodologies for projecting hurricane losses.