Le Lézard
Classified in: Environment, Business
Subjects: SVY, ECO, ENI

FIU experts use hurricane loss model to estimate damages caused by Hurricane Irma at $19 billion



MIAMI, Sept. 21, 2017 /PRNewswire-USNewswire/ -- A team of researchers headed by FIU College of Business professor Shahid Hamid, using the Florida Public Hurricane Loss Model, estimates that Hurricane Irma caused $19.4 billion in wind-related losses to Florida residents alone. The data doesn't cover flood losses.

Of that total, $6.3 billion will be paid by insurance companies. As a result, roughly two-thirds of the losses will be borne by homeowners. The highest wind losses are in Lee County (Fort Myers and Cape Coral), followed by Collier County (Naples, Marco Island and Immokalee).

"This is not surprising given the high level of hurricane deductibles and the less intense tropical storm in most of Florida," said Hamid, who chairs the College of Business' Department of Finance and is director of the Laboratory for Insurance, Financial and Economic Research, located in the International Hurricane Research Center at FIU.

The innovative Florida Public Hurricane Loss Model, which is used to calculate the financial and insurance impact, is the State of Florida's benchmark for evaluating the financial risks faced by insurance companies that write windstorm policies, and, in turn, set the premiums paid by their customers. In May, the state recertified the model for the next two years.

According to the FIU team's research, insurance companies normally pay for 25 to 45 percent of losses from a Category 1 hurricane and the payments increase to at least 85 percent for Category 5 storms. 

Hamid's team includes specialists in meteorology, storm surge, hydrology, engineering, finance and actuarial science, computer science and statistics from FIU as well as the University of Florida, Florida State University, Florida Institute of Technology, University of Miami and the National Oceanic and Atmospheric Administration. About 40 percent of the work is done at FIU.

The current estimates of damages from Hurricane Irma are based on preliminary wind field analysis data provided by NOAA and will be revised as more observed wind data becomes available.

Florida's 2017-2018 budget includes a grant of $960,000, which pays Hamid's team not only to update and run the existing hurricane wind model, but for continuing work on a separate $5.6 million flood risk and loss model, as governments hope to supplement the National Flood Insurance program with private ones. The prototype for the flood model will be ready by the end of 2017.

Media Contact:
Cynthia Corzo
305-348-1664
ccorzo@fiu.edu
business.fiu.edu
news.fiu.edu
@FIUNews

SOURCE Florida International University


These press releases may also interest you

21 oct 2017
Ontario Gives Land to Parks Canada for first national park in a city; New App for the Park Launched TORONTO, Oct. 21, 2017 /CNW/ - The establishment of North America's largest urban park has taken a giant leap forward. Today, the Government of...

20 oct 2017
QUÉBEC, Oct. 20, 2017 /CNW Telbec/ - The Quebec Oil & Gas Association applauds the government's decision to extend the comments period for the new regulations. These regulations, the first modern ones in Quebec governing oil and gas, are...

20 oct 2017
BAIE-COMEAU, QC, Oct. 20, 2017 /CNW/ - The effective and strict enforcement of Canadian environmental and wildlife legislation is one way Environment and Climate Change Canada meets its commitments to maintain clean air and water and protect wildlife...

20 oct 2017
KENT ISLAND, Md., Oct. 20, 2017 /PRNewswire/ -- It was a banner day for the 2017 Chevrolet Bolt and 2018 Lexus LS 500 at the annual 2017 Washington Automotive Press Association (WAPA) Rally on Oct. 12. The Chevrolet Bolt EV took home the WAPA Rally...

20 oct 2017
MONTREAL, Oct. 20, 2017 /CNW Telbec/ - Technoparc Montréal and FPInnovations today concluded the purchase of lands by FPInnovations for its establishment at the Technoparc de Montréal. The lands, totaling more than 360,000 square feet (33,400 square...

20 oct 2017
WASHINGTON, Oct. 20, 2017 /PRNewswire-USNewswire/ -- The National League of Cities (NLC) and the Urban Land Institute (ULI) today announced that mayors from four cities?Columbus, Ohio; Richmond, Virginia; Salt Lake City, Utah and Tucson, Arizona?have...




News published on 21 september 2017 at 12:27 and distributed by: