AIR Worldwide Releases Winter Storm Model for the U.S.; First Model to Employ Numerical Weather Prediction Technology to Help Insurers Better Manage U.S. Winter Storm Risk.BOSTON -- AIR Worldwide Corporation (AIR) today announced the release of its Winter Storm Model for the U.S. The model captures the effects of wind, precipitation, and freezing temperatures on insured properties. It is designed to provide insurers with a scientifically-based assessment of winter storm risk for more effective risk management. The model was developed to address the fact that the loss history of most insurers is too brief to reasonably estimate the likelihood of the most extreme losses from winter storms. Reliance on historical losses to project future losses can lead, in some cases, to a significant underestimation of the risk. "Until now, estimating likely losses from winter storms has been very challenging," said John DeMartini, Towers Perrin Towers Perrin is a global professional services firm. It was established 1 March 1934 as Towers, Perrin, Forster & Crosby. The umbrella name of Towers Perrin was adopted in 1987. principal and senior vice president of their reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business. "With the release of AIR's new model, we will be able to incorporate a scientific assessment of winter storm risk into our actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin analyses, similar to other perils, to help our clients make better reinsurance purchasing decisions." AIR's model explicitly accounts for the three drivers of winter storm loss: wind, precipitation, and temperature. The AIR model is based on numerical weather prediction Numerical weather prediction uses mathematical models of the atmosphere to predict the weather. Manipulating the huge datasets and performing the complex calculations necessary to do this on a resolution fine enough to make the results useful can require some of the most powerful (NWP NWP Numerical Weather Prediction NWP National Writing Project NWP Nationwide Permit NWP Northwest Passage NWP Netherlands Water Partnership NWP National Women's Party NWP New Wafd Party (Egypt) NWP Neighborhood Watch Program ), a technology that naturally captures the connection between these storm characteristics by dynamically modeling the physics of the atmosphere. The AIR model covers the winter storm risk in its various manifestations across the entire continental U.S., including: --Nor'easters affecting the East Coast --Ice storms in the Southeast, South-Central, and Midwest states --Freeze conditions in the South-Central states --Windstorms along the West Coast --Lake and ocean effect snows along the Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). and Eastern Seaboard The AIR model accounts for regional design code differences that impact the vulnerability of properties to winter storms, the effects of cold temperatures that can burst pipes and cause damage to non-structural elements and contents, and drifting snow that can accumulate and cause roof collapse. "Since 1990, winter storms have cost insurers almost $17 billion," said Dr. Peter Dailey, AIR manager of atmospheric science and architect of the new model. "AIR's winter storm model incorporates a number of new scientific techniques, including an innovative dynamic snow load model, to help insurers better assess and prepare for this significant risk." AIR's Winter Storm Model for the U.S. is available in Version 7.5 of its CLASIC/2(TM), CATRADER(R), and CATStation(R) catastrophe modeling
About AIR Worldwide Corporation AIR Worldwide Corporation (AIR) is a leading risk modeling company helping clients manage the financial impact of catastrophes and weather. Utilizing the latest science and technology, AIR models natural catastrophes in more than 40 countries and the risk from terrorism in the United States A common definition of terrorism is the systematic use or threatened use of violence to intimidate a population or government and thereby effect political, religious, or ideological change. . Other areas of expertise include site-specific seismic engineering analysis, catastrophe bonds, and property replacement cost valuation. A member of the ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. family of companies, AIR was founded in 1987 to provide its insurance, reinsurance, corporate, and government clients a complete line of risk modeling software and consulting services that produce consistent and reliable results. Headquartered in Boston, AIR has additional offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, and Asia. For more information, please visit www.air-worldwide.com. |
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