![\"\"](\"https:\/\/biznews.fiu.edu\/wp-content\/uploads\/2021\/06\/hurricane-loss-model.jpg\")
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The FIU-led Florida Public Hurricane Loss Model (FPHLM) was recertified by the State of Florida for the next two years. The $960,000 grant pays to update and run the existing program.<\/p>\n
A joint project with four other universities, the model is the State of Florida\u2019s benchmark for evaluating the financial risks faced by insurance companies that write windstorm policies, and, in turn, set the premiums paid by their customers.<\/p>\n
Shahid Hamid, chair of\u00a0FIU College of Business<\/a>\u2019 Department of Finance and director of the Laboratory for Insurance, Financial & Economic Research, part of FIU\u2019s\u00a0Extreme Events Institute (EEI)<\/a>, describes hurricane loss model as a very useful tool for both insurance companies and government entities.<\/p>\n The FPHLM\u2019s computer programs simulate and predict how, where and when hurricanes form, their intensity and track, how they will interact with different types of structures and how much damage it will cause to roofs, windows, doors and interiors, and contents.<\/p>\n \u201cFairly priced and reliable insurance is the key to community resilience to hurricanes,\u201d said Richard Olson, director of the EEI. \u201cFor many Florida families, insurance determines how well \u2013 and how quickly \u2013 they bounce back from storm damage.\u201d<\/p>\n The program, which has been ongoing since 2001, also estimates how much it will cost to rebuild from the damage and how much of the loss will be paid by insurers. According to the FIU team\u2019s research, because of deductibles, insurance companies normally pay for 25% to 45% of losses from a Category 1 hurricane and the payments increase to at least 85% for Category 5 storms.<\/p>\n Hamid\u2019s 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, the Florida Institute of Technology, the University of Miami and the National Oceanic and Atmospheric Administration.<\/p>\n In addition to the hurricane loss model, the team is working on a flood risk and loss model which should be completed in 2022.<\/p>\n","protected":false},"excerpt":{"rendered":" The FIU-led Florida Public Hurricane Loss Model (FPHLM) was recertified by the State of Florida for the next two years. The $960,000 grant pays to update and run the existing program. A joint project with four other universities, the model is the State of Florida\u2019s benchmark for evaluating the financial risks faced by insurance companies […]<\/p>\n","protected":false},"author":67,"featured_media":35741,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[4,10],"tags":[619,4235,2412],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/35737"}],"collection":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/comments?post=35737"}],"version-history":[{"count":4,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/35737\/revisions"}],"predecessor-version":[{"id":35749,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/35737\/revisions\/35749"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/media\/35741"}],"wp:attachment":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/media?parent=35737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/categories?post=35737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/tags?post=35737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}