WEDNESDAY, FEBRUARY 22, 2012

The ClimateCast® U.S. Hurricane Risk Index provides a real-time assessment of insured risk by making direct use of operational model forecasts of storm track and intensity. A full distribution of scenarios is run through the AIR U.S. Hurricane Model and the expected value of that distribution is indexed against the model's exceedance probability curve. The resulting index value is reported on a scale from 0 to 10, with the confidence level quantified by the spread of the loss distribution. The index is updated every 6 hours, and will have a non-zero value whenever an active tropical cyclone threatens loss in the U.S. The higher the risk index, the higher the threat of insured loss in the U.S. The index calculation can be customized to a portfolio or disaggregated to a finer resolution. For a more detailed description of the factors that influence the U.S. Hurricane Risk Index, click here.


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