KCC US Wildfire Model Completes California Department of Insurance Review Process

BOSTON--(BUSINESS WIRE)--Karen Clark & Company (KCC) is pleased to announce the California Department of Insurance (CDI) has completed its review of the KCC US Wildfire Reference Model Version 3.0 under the newly established Pre-Application Required Information Determination Procedure (PRID). This process paves the way for insurers to use the catastrophe models for ratemaking.

“As the innovation leader in weather, climate, and catastrophe modeling, KCC is pleased to have been among the first modeling companies to go through the PRID process,” said Glen Daraskevich, KCC Senior Vice President. “The KCC wildfire model has already been accepted for rate filings in 24 other states, and our clients are looking forward to extending their use of the KCC model to the important state of California.”

Over a series of months, the PRID Model Advisor carefully reviewed each component of the KCC Wildfire Model, interviewed KCC scientists and experts, and analyzed detailed test cases that allowed for a detailed scientific assessment of the model.

“To accurately model wildfires and capture the effects of high winds, vegetation, moisture, topography and other factors influencing wildfire spread, KCC scientists developed an innovative physical modeling approach that leverages high-resolution data and advanced scientific methodologies,” said Dr. Dan Ward, KCC Senior Director of Model Development. “The KCC methodology explicitly incorporates the impacts of climate change and accounts for mitigation efforts at the property and community level to encourage the reduction of wildfire risk.”

“KCC is committed to expanding insurance availability and to supporting Commissioner Lara’s innovative Sustainable Insurance Strategy,” noted Karen Clark, KCC CEO. “The PRID determination is a key milestone that empowers insurers with the advanced KCC models they require to support mitigation efforts and expand coverage in wildfire-prone areas.”

About Karen Clark & Company
Karen Clark & Company (KCC) provides advanced models, innovative software, and comprehensive consulting services for deeper insight into climate, weather, and catastrophe risk. KCC professionals are globally recognized experts in catastrophe modeling and risk management who work with company executives to enhance business strategies, competitive advantage, and financial results. KCC models cover tropical cyclones, extratropical cyclones, severe convective storms, winter storms, wildfires, floods, and earthquakes in over 70 countries. For more information, please visit www.karenclarkandco.com.