Claims News Service, June 26, 9:38 a.m. EST− Risk Management Solutions has recently announced that the Florida Commission on Hurricane Loss Projection Methodology has recertified the RMS hurricane model as the basis for setting residential insurance rates in Florida.

According to RMS, The certified version estimates hurricane activity rates for the next five years based on a straight historical average of the number of hurricanes recorded since 1900, as required by FCHLPM standards.

RMS created a version based on the forward-looking medium-term view of hurricane activity, which reflects the increased hurricane frequency and intensity since 1995, but withdrew it from the certification process because it did not operate within regulatory standards.

The re-submitted version is derived from the historical average, which did meet the standards established by the Commission and is based on statistics, meteorology, and other standards that are used to determine Florida’s insurance loss costs.

Interested in more risk management news and in-depth articles? Head over to Claims’ risk management channel for more information.