February 24th, 2010

GC ForeCat™ Continues to Predict Southeast Region of United States Most Vulnerable to Landfalling Hurricanes in 2010

Posted at 11:23 AM ET

cati-pred-se-smallGC ForeCat is a product developed by Guy Carpenter in collaboration with WSI Corporation, the world’s leading provider of weather-driven business solutions, that provides pre-season hurricane landfall forecast rates for different regions in the United States. GC ForeCat revolutionises hurricane forecasting by estimating the rate of landfall for regions along the US coastline. Four different regions (Gulf, Florida, Southeast and Northeast - see Figure 1 on page 2) are derived with associated likelihood of tropical cyclones making landfall in each area. Monthly updates are anticipated up to and including May.

The second 2010 GC ForeCat update was released on 23 February and the results are shown in Table 1 below (along with average landfall rates between 1951 and 2007). According to the February update, the Southeast region remains most vulnerable to tropical cyclones coming shore in the United States in 2010. The rate of 0.96 for the Southeast represents the mean number of landfalling tropical cyclones in that region for the forthcoming hurricane season, more than double the 1951-2007 average landfall rate of 0.41 and a significant increase on last month’s forecast rate of 0.70. The forecast landfall rate for the Florida region has also been upwardly revised from 0.49 in January to an above-average 0.60 in February. Meanwhile, the Northeast and Gulf regions continue to show near-average mean landfall rates of 0.29 and 0.59, respectively.

Table 1: GC ForeCat Landfall Rates

Region

February 2010 Forecast Landfall Rate

1951-2007 Average Landfall Rate

Gulf (coastline from Texas to Alabama-Florida border)

0.59

0.66

Florida (entire Florida coastline)

0.60

0.49

Southeast (coastline from Atlantic Florida-Georgia border to Cape Hatteras)

0.96

0.41

Northeast (coastline from Cape Hatteras to Maine)

0.29

0.29

 

cati-pred-se-big

Hazard data illustrated in the CAT-i map was taken from i-aXs®, Guy Carpenter’s web-based risk management platform. i-aXs users can view impacted areas on any map as well as see how their portfolios were affected. Please contact your broker or Instrat® representative for assistance or go to www.i-axs.info for further information.

GC ForeCat was first developed for the 2008 hurricane season, utilising hurricane landfall data from 1951 to 2007 together with corresponding climate/ocean data, representative of North Atlantic oscillation, tropical Atlantic water temperatures and El Niño/La Niña. The skill of this forecast has been established using historical storm seasons and “hold-one-out” analyses.

GC ForeCat will be updated using the latest climatological data on a monthly basis until the beginning of the hurricane season. Using i-aXs®, Guy Carpenter’s web-based risk management platform, analysts will calculate exceedance probability (EP) curves, based on vendor cat models, for client and industry exposures falling within each region. With this deeper detailed information, Guy Carpenter clients who subscribe to i-aXs now benefit from improved risk management capabilities, enabling them to manage their reinsurance purchases more effectively.

For more information on GC ForeCat, please contact Priyantha Perera at Guy Carpenter at priyantha.perera@guycarp.com.

Sources: Guy Carpenter, WSI Corporation

Click here to register for e-mail updates from GC Capital Ideas >>

Guy Carpenter’s Instrat® department provides CAT-i reports for major natural catastrophes worldwide. These reports cover catastrophes including worldwide tropical cyclones, earthquakes, major UK and European floods and any other natural event that is likely to incur a significant loss to the (re)insurance industry. Please email CAT.i@guycarp.com if you wish to be added to the free email distribution list.

Instrat also provides RISK-i reports for major technological or man-made events worldwide. These reports cover risks to property, transport and life including explosions, fires, crashes, engineering disasters and terrorist attacks that are likely to incur a significant loss to the (re)insurance industry. Please email RISK.i@guycarp.com if you wish to be added to the free email distribution list.

AddThis Feed Button
Bookmark and Share


Related Posts