1 June 2022
In this interview with Insurance Journal, Karen Clark discusses how Hurricane Andrew validated catastrophe models and the modeling industry she helped pioneer.
In this interview with Insurance Journal, Karen Clark discusses how Hurricane Andrew validated catastrophe models and the modeling industry she helped pioneer.
Karen Clark joins the Wednesdays with Woodward webinar series to discuss how insurance professionals and their customers can prepare to navigate increasing risk from more frequent and severe hurricanes.
At the inaugural Bermuda Climate Summit, Karen Clark comments on how climate change and related risk have forced an altered approach to catastrophe modeling.
Karen Clark discusses the importance of catastrophe models to the insurance industry through use cases including Hurricane Andrew and climate change.
In a recent article, Karen Clark writes about the history and evolution of catastrophe modeling as well as the latest advances. Karen examines how Hurricane Andrew led to widespread use of catastrophe models by reinsurers, how catastrophe risk is impacted by climate change, and more.
Months after Hurricane Ida impacted the US, there’s still market uncertainty around the insured losses. In this article, Karen Clark breaks down what is likely to be the final tally for Ida and discusses how climate change and inflation are impacting hurricane losses generally.
In a recent article on the 30th anniversary of Hurricane Andrew, Karen Clark writes about lessons learned and what has changed since the storm struck South Florida in 1992. The article examines the increased hurricane risk from factors such as climate change, the evolution of hurricane preparedness, mitigation, models and insurance, and more.
In a recent article on the potential impacts of wildfires, KCC provided a damage estimate for a hypothetical wildfire hitting Santa Barbara, California.
In a Wall Street Journal article discussing how rising construction costs could impact rebuilding efforts following Colorado's Marshall Fire, KCC's $1 billion loss estimate is referenced.
Real events are necessary to test and continually update the accuracy of catastrophe models, says KCC founder and CEO Karen Clark in a interview with Insider Engage.
The recent severe wildfire outbreak has been estimated as around a $1 billion insurance industry loss, by risk modeler Karen Clark & Company.
Catastrophe modeling firm Karen Clark & Company (KCC) said on Wednesday it expects insured losses of about $1 billion from the rare winter wildfire that roared through two towns in Boulder County, Colorado.
Insured losses from the Marshall fire in Colorado will be around $1 billion, Boston-based catastrophe modeler Karen Clark & Co. said Wednesday.
The wildfire that ignited on Dec. 30 in Boulder County, Colorado destroyed 1,000 structures and caused insured losses of about $1 billion, catastrophe modeler Karen Clark & Co. said Wednesday.
The late-season Marshall Fire is estimated to have resulted in insured losses of approximately $1 billion, according to risk modeler Karen Clark & Company.
The storms that impacted the Midwest caused insured losses of around $3 billion according to estimates by catastrophe modeling firm Karen Clark & Company (KCC).
Total insured and uninsured losses from severe convective storms that struck several US states last weekend will be about $3 billion, catastrophe modeling company Karen Clark & Co. estimated.
The recent outbreak of deadly tornadoes and damaging severe convective storms in the US has been estimated as a roughly $3 billion insurance industry loss by risk modeler Karen Clark & Company.
The insured loss from the December 9-12 tornado outbreak that devastated parts of central US has been estimated to be about $3 billion by catastrophe modeling firm Karen Clark & Company.
Analysis from catastrophe risk modeling firm, Karen Clark & Company (KCC), estimates that the insurance industry loss from the recent severe convective storm (SCS) outbreak in the US will be around $3 billion.
Karen Clark spoke with Intelligent Insurer about the impacts of climate change on tropical cyclones and the insurance industry.
KCC was recognized as a Technology Innovation honoree in the inaugural PropertyCasualty360 Insurance Innovators recognition program for providing high-resolution and accurate loss data for live events and being the only modeling company to issue insurer-specific loss estimates during the February 2021 Arctic Air Outbreak (Winter Storm Uri).
Dr. Daniel Ward, KCC Director, Model Development, spoke with Leader’s Edge about the growing wildfire risk in the western U.S. fueled by climate change.
A recent article discusses key takeaways from KCC’s white paper on the impact of climate change on hurricanes and insured wind losses.
A recent article discusses key takeaways from KCC’s white paper on the impact of climate change on hurricanes and insured wind losses.
In a recent Business Insurance Q&A, Karen Clark discussed Hurricane Ida, the lessons learned, and how catastrophe models are helping insurers manage climate change.
Karen Clark spoke with Bloomberg Intelligence for a live webinar discussing Hurricane Ida and how KCC develops accurate real-time loss estimates for live events.
KCC estimates the insured loss from Hurricane Nicholas will be around $950 using the high-resolution US Hurricane Reference Model.
A Karen Clark & Company flash estimate puts the insured loss from Hurricane Nicholas at $950 million.
Hurricane Nicholas is expected to cost the insurance industry around $950 million, says catastrophe risk specialist Karen Clark & Company.
Karen Clark & Company estimate insured losses for Hurricane Nicholas will be around $950 million.
Karen Clark spoke with Intelligent Insurer for a one-on-one interview regarding the IPCC Sixth Assessment Report (AR6) and the impacts for insurers and reinsurers.
Karen Clark & Company’s insured loss estimate of $18 billion was used in an analysis comparing Hurricane Ida and Hurricane Katrina.
In an article discussing flooding in the northeast from Hurricane Ida, KCC’s insured loss estimate is quoted.
Karen Clark, KCC CEO and President, was interviewed about how recent events have demonstrated a need for new approaches to catastrophe modeling
Karen Clark & Company estimates that insured losses from Hurricane Ida will likely be close to $18 billion.
In a summary of insurance impacts from Hurricane Ida, KCC’s loss estimate for the storm is discussed.
While explaining common flood insurance policies, KCC’s insured loss estimate for Hurricane Ida is mentioned.
Karen Clark & Company has estimated insured losses from Hurricane Ida will be near $18 billion in the US.
In an article discussing the potential impacts of Ida in the northeast, KCC’s insured loss estimate for the event is mentioned.
When summarizing key takeaways from Hurricane Ida, KCC’s insured loss estimate of $18 billion in the US was included.
Hurricane Ida will produce $18 billion in insured losses, according to Karen Clark & Company.
Catastrophe risk modeler Karen Clark & Company estimates that the insurance industry will see $18 billion in losses from Hurricane Ida.
In a summary of damage sustained from Hurricane Ida, Karen Clark & Company’s insured loss estimate of $18 billion is mentioned.
On Wednesday, Karen Clark & Company estimates that Hurricane Ida will cost insurers $18 billion.
Karen Clark & Company estimates that insured losses from Hurricane Ida would reach around $18 billion, and costs for cleanup and rebuilding may continue to climb given recent demand.
In an article discussing the impacts of Hurricane Ida and early recovery efforts, Karen Clark & Company’s total and insured loss estimates were discussed.
Karen Clark & Company released an insured loss estimate of $18 billion for Hurricane Ida, which falls with the expected range.
A preliminary estimate from Karen Clark & Company indicates insured losses from Hurricane Grace will be near $330 million.
Karen Clark & Company estimates insured loss from Hurricane Grace to be $330 million.
Insured losses from Hurricane Grace will amount to $330 million, according to Karen Clark & Company.
Karen Clark & Company estimates Grace’s insured loss to be around $330 million in Mexico and the Caribbean.
Catastrophe risk modeler Karen Clark & Company estimates that insured loss from Grace will be $330.
Karen Clark & Company estimates Hurricane Grace caused $330 million in insured losses in the Caribbean and Mexico.
Insured losses from Hurricane Grace are expected to be around $330 million, according to Karen Clark & Company.
Catastrophe risk modeling firm Karen Clark & Company estimates insured losses from Hurricane Grace to be near $330 million.
Insured loss caused by Tropical Storm Henri will be around $155 million, according to Karen Clark & Company.
Karen Clark & Company, a risk modeling firm, has estimated that insured losses from Hurricane Henri will be near $155 million.
Insured losses from Hurricane Henri will be close to $155 million, according to Karen Clark & Company.
In an article discussing the impacts of Hurricane Henri, KCC’s estimated insured loss for the event is quoted.
Catastrophe risk modeler Karen Clark & Company estimated insured losses from Hurricane Henri would be around $155 million.
Karen Clark & Company provided a modeled estimate of the insurance and reinsurance market losses for Hurricane Henri.
Catastrophe modeling firm Karen Clark & Company estimated that insured losses from the M7.2 Haiti earthquake will be around $250 million.
In an article discussing the impact of climate change on property insurance, Karen Clark, KCC President and CEO, was interviewed about the role of catastrophe models to meet the growing demand for the effect of climate change on natural disasters.
The recent Haiti earthquake is expected to result in $250 in insured losses, according to Karen Clark & Company.
KCC Caribbean Earthquake Reference Model indicates that the August 2021 Haiti earthquake caused around $250 million in insured losses.
The M7.2 earthquake in Haiti may cause up to $250 in insured losses, according to Karen Clark & Company.
Karen Clark & Company estimates the insured losses from the 2021 Haiti earthquake are around $250 million.
Karen Clark & Company estimates insured losses on land from Hurricane Elsa will be around $290 million.
Boston-based catastrophe modeling firm Karen Clark & Company estimates insured losses from Hurricane Elsa will be around $290 million.
The insured loss from Hurricane Elsa will be around $290 million, according to Karen Clark & Company.
In a recent article, KCC CEO & Co-Founder Karen Clark commented on the increasing frequency and cost of "non-tail, large loss" events and how KCC accounts for climate change and evolving exposures in its models.
This interview with Karen Clark highlights the innovation she has brough to the insurance industry from her start at Commercial Union Assurance to current advancements she is making at Karen Clark & Company. The interview also adresses how she navigated her career in a male dominated industry.
In a recent article on the potential impacts of derechos, KCC provided a damage estimate for hypothetical events. Karen Clark also commented on the typical frequency of derechos, the difficulties of assigning a severity to derechos, and what should be considered an extreme event.
In this S&P Global Market Intelligence article on losses from the unprecedented winter weather in the southern U.S., Karen Clark commented on the factors that made the storm so severe, including extremely cold temperatures that lasted longer than expected, significant amounts of snow and ice, and a level of unpreparedness due to the rarity of such an event in the region.
In a video interview with Yahoo Finance!, Karen Clark detailed the estimated losses from the February winter storm and severe cold, the location of the majority of claims and damage, and the importance of preparing for similar events in the future.
This article discusses KCC’s industry loss estimate of $18 billion across residential, commercial, and industrial lines of business from the Arctic Air Outbreak. This level of loss will likely impact insurance and reinsurance markets, and it is too early to determine if catastrophe bonds will be triggered.
In this article on the severe winter weather in Texas and surrounding states, Karen Clark commented on potential impacts of the storm, the characteristics that made the event an anomaly, and KCC’s insured loss estimate.
A Reinsurance News article reports on KCC’s estimated insurance and reinsurance industry losses from the severe winter weather in the U.S., noting the loss covers 20 states, with over half of the total in Texas.
A Reuters article regarding losses from the severe winter weather in Texas cites Karen Clark & Company’s insured loss estimate of $18 billion.
In a Wall Street Journal article on estimated damage from the severe winter weather in Texas and numerous other states, Karen Clark commented on the types of damage that were most prominent, the geographic spread of the damage, and the characteristics of the storm that made it an extreme event.
In an interview with Inside P&C, Karen Clark addressed the factors contributing to the large losses related to the February winter storm event.
In a recent article on the challenges facing risk managers and modelers, Karen Clark noted that 2020 was unprecedented in terms of natural disasters, which are “increasing in frequency and severity, and much faster than they have in the past.”
Karen Clark & Company’s projections for the combined insured U.S. losses from hurricanes Laura and Delta were cited in a recent Associated Press article regarding the storms’ impacts and associated aid efforts.
In an article exploring technological advances in the insurance industry, Karen Clark discusses how KCC’s live event tracking is used to assist insurers in planning for major events and to identify fraudulent claims.
Catastrophe risk modeler Karen Clark & Company released its new US Winter Storm Reference Model that uses a physics-based methodology to capture winter storm loss potential.
Karen Clark & Company launched a new winter storm model that captures the loss potential from snow and ice, freezing temperatures, and high winds.
The KCC Flood Model has been certified by the Florida Commission on Hurricane Loss Projection Methodology, making it the first to be accepted.
Insured loss to onshore properties from Hurricane Zeta will be close to $4.3 billion, according to Karen Clark & Company.
Catastrophe modeling company Karen Clark & Company said insurers could face $4.3 billion in US losses from Hurricane Zeta.
Karen Clark & Company estimates insured loss to onshore properties caused by Hurricane Zeta will be near $4.4 billion.
Karen Clark & Company estimates insured loss to onshore properties caused by Hurricane Zeta will be near $4.4 billion.
Insured losses to onshore properties from Hurricane Delta will total close to $1.25 billion according to catastrophe risk modeling firm Karen Clark & Company.
Based on the company’s high-resolution US and Mexico Hurricane Reference Models, Karen Clark & Company estimates the total insured loss to onshore properties from Hurricane Delta will be close to $1.25 billion
In the first loss estimate published since Hurricane Delta made landfall as a Category 2 storm in Louisiana, Karen Clark & Company (KCC) estimated onshore insured losses from Delta could reach nearly $1.25 billion.
In this article, based on Karen Clark’s appearance on Intelligent Insurer’s virtual “Re/insurance Lounge” in August, Karen shares insights about her experience as a pioneer of cat risk modelling, the past, present and future of the discipline, and its key role in re/insurance.
Catastrophe modeling firm Karen Clark & Company estimates insured losses to onshore properties from Hurricane Sally will be around $2 billion.
Insured loss estimates from Hurricane Sally may top $2 billion, according to Karen Clark & Company.
Karen Clark & Company has estimated Hurricane Sally’s insured losses from onshore properties at around $2 billion.
Karen Clark was named Outstanding Contributor of the Year at the 2020 Trading Risk Awards. The special award, presented on the recommendation of the Trading Risk editor, is given to an individual who has made an exceptional contribution to the sector.
In an article discussing impacts to Louisiana from Hurricane Laura, KCC’s insured loss estimate for the storm is mentioned.
Karen Clark & Company estimates insured loss to onshore property from Hurricane Laura will be near $9 billion.
In an article discussing the impacts of Hurricane Laura, KCC’s estimated insured loss is included.
Catastrophe risk modeler Karen Clark & Company estimates industry losses from Hurricane Laura are expected to be close to $9 billion.
Karen Clark & Company estimates insured losses from wind and storm surge as a result of Hurricane Laura will be near $9 billion.
An early loss estimate from Karen Clark & Company indicates insured losses from Hurricane Isaias will be near $4 billion in the US and $200 million in the Caribbean.
Catastrophe modeling firm Karen Clark & Company estimates the insured loss from Hurricane Isaias will be around $4 billion in the US and $200 million in the Caribbean.
The insured loss from Hurricane Isaias in the Caribbean and US will be around $4.2 billion, according to Karen Clark & Company.
Hurricane Isaias is expected to cause $4 billion of insured losses in the US and $200 million in the Caribbean, according to Karen Clark & Company.
Catastrophe risk modeler Karen Clark & Company has estimated the insured loss from Hurricane Isaias will be $4 billion in the US and $200 million in the Caribbean.
Karen Clark & Company estimates insured losses from Hurricane Isaias could be around $4 billion in the US and $200 million in the Caribbean.
Hurricane Isaias may have caused an insurance and reinsurance industry loss of $4.2 billion, according to catastrophe risk modeler Karen Clark & Company.
The insured loss from Hurricane Hanna will be close to $350 million, according to catastrophe risk management firm Karen Clark & Company.
Catastrophe risk modeling firm Karen Clark & Company estimates insured loss from Hurricane Hanna will be close to $350 million.
After making landfall in Texas, Hurricane Hanna’s insurance market loss will be near $350 million, according to Karen Clark & Company.
Karen Clark & Company estimates that the insurance industry losses from Hurricane Hanna will be near $350 million.
In a summary of recent tropical cyclone impacts, KCC’s Hurricane Hanna industry loss estimate of $350 million was discussed.
The 2020 hurricane season will be an active one, according to all of the major forecasters. KCC analyses suggest insurers should anticipate larger-than-normal losses if hurricanes do make landfall this year due to complications caused by COVID-19.
In this bylined article, KCC CEO & Co-Founder Karen Clark explores how best practices that have evolved around the use of natural catastrophe models have value for managing future pandemics.
Tropical Storm Fay will cause around $400 million in insured loss, according to catastrophe modeling firm Karen Clark & Company.
Catastrophe risk modeler Karen Clark & Company has estimated an insurance market loss of $400 million from Tropical Storm Fay.
Tropical Storm Fay will drive an insured loss near $400 million, according to Karen Clark & Company.
A statement released Tuesday by catastrophe modeler Karen Clark & Company estimated insured losses from Tropical Storm Fay would be around $400 million.
Catastrophe Risk modeling firm Karen Clark & Company has estimated that Cristobal has caused an insurance and perhaps reinsurance market loss of around $150 million.
Tropical Storm Cristobal, which made landfall along the US Gulf Coast on June 8th, will likely result in insured losses close to $150 million, according to Karen Clark & Company.
Karen Clark & Company estimates that privately insured losses from Tropical Storm Cristobal will be near $150 million.
Catastrophe modeler Karen Clark & Company estimates that Tropical Storm Cristobal, which impacted large parts of the US Gulf Coast, will result in around $150 million of insured losses.
In an article discussing the challenges for insurers given an active hurricane season during a pandemic, Karen Clark & Company’s recent report about the impact of COVID-19 on hurricane losses is referenced.
Karen Clark, CEO of catastrophe modeler Karen Clark & Company, commented on the rising severity and intensity of natural catastrophes being amplified by climate change. Ms. Clark noted that the rising severity and intensity of floods and other natural perils in Florida is caused by several factors, including population growth, climate change and the state's history of natural variability.
In a recent AP article, Karen Clark noted that recovery from a hurricane may take longer and will be more costly than in normal times, as search and rescue teams, utility workers, and volunteers may be slowed or not respond at all because of concerns over virus exposure. According to KCC, this may mean a storm that in the past caused $12 billion in insured damage, like 2018’s Hurricane Michael, could cost 20% more.
A Karen Clark & Co. Event Brief warns that the pandemic will make what forecasters already predict to be an above-average hurricane season even more difficult. Among other takeaways, the report notes social distancing, the need for personal protection equipment (PPE), more expensive lodging and other restrictions specific to COVID-19 will complicate claims adjusting this year.
Karen Clark & Company issued a report stating that hurricane losses and loss adjustment costs will increase due to COVID-19.
According to Karen Clark & Company, hurricanes that impact a widespread area could cause inflated insured losses even with low windspeeds due to the ongoing COVID-19 pandemic.
A new COVID-19 Event Brief from Karen Clark & Company highlights the impact of the pandemic on the U.S. and other countries. The data shows a wide variation among the various locations with seemingly no correlation between the timing and duration of a lockdown and the fatalities per population.
Commenting on Guy Carpenter & Company’s multi-year agreement with Karen Clark & Company, Peter Hearn, President and CEO of Guy Carpenter, said, “KCC and Guy Carpenter share the view that the (re)insurance industry is now ready for a paradigm shift in the current approach to catastrophe modeling. The partnership that we have announced today provides the platform from which we can now expedite the inevitable and desirable changes in the catastrophe modeling industry.”
Guy Carpenter & Company has licensed the full suite of KCC’s catastrophe models and risk management applications, making it the first intermediary to obtain access to KCC’s RiskInsight® platform.
Guy Carpenter has agreed to a multi-year partnership with Karen Clark & Company. “Over the past several years, KCC has partnered with market-leading (re)insurers who have informed this advanced modeling technology, and we’re looking forward to this new partnership with Guy Carpenter and the potential it brings to their extensive global client base,” said Karen Clark, CEO of KCC.
According to KCC’s report on 2018’s Typhoon Jebi, the $15 billion in insured losses should not have been a surprise to catastrophe modelers and re/insurers. The report also discussed the nature of the damage, as observed by KCC’s survey team.
Based on its high-resolution Japan Typhoon Reference Model, KCC believes industry losses such as those seen with Jebi are at least a 1-in-20 year event and that the insurance and reinsurance sectors can expect significantly larger losses at longer return periods.
KCC’s analysis from a white paper on the anniversary of Typhoon Jebi predicts that insurance and reinsurance firms, and also insurance-linked securities (ILS) players, can expect to experience insured losses of above $15 billion from a Japanese typhoon with a frequency of at least once every 20 years, on average.
Based on the KCC high-resolution Hurricane Reference Model, KCC estimates that the total insured loss from Hurricane Dorian in the U.S. will be $1.5 billion, with 40% of the U.S. insured losses coming from North Carolina.
Karen Clark & Company’s white paper on Typhoon Jebi notes the storm was not an unprecedented loss event for Japan, when viewed in a historical context. KCC found that Typhoon Nancy (1961) and Typhoon Isewan (1959), would each cause more than $20 billion in insured losses if they were repeated today.
According to Karen Clark & Company, insured losses from Hurricane Dorian (including the Caribbean and US) are around $5.23 billion.
Catastrophe modeling firm Karen Clark & Company estimates that the total insured losses from Hurricane Dorian will be $5.2 billion in the US and Caribbean.
Karen Clark & Company estimates insured losses from Hurricane Dorian will reach $5.2 billion for the US and Caribbean.
According to Karen Clark & Company, Hurricane Dorian caused $7 billion in total damage in the Bahamas, and the damage could have been worse if New Providence had been impacted by more severe winds.
In an article discussing the impacts of Hurricane Dorian and the relief effort, KCC’s total loss estimate for Hurricane Dorian in the Bahamas is referenced.
The amount of damage in the Bahamas is slowly becoming clear, and a preliminary estimate from Karen Clark & Company indicates Hurricane Dorian caused $7 billion in total property losses.
KCC’s preliminary estimate of $7 billion in the Bahamas, including total property loss, was referenced when discussing the impacts of Hurricane Dorian in the Bahamas.
Catastrophe modeling firm Karen Clark & Company have estimated around $7 billion in total property damage has occurred in the Bahamas from Hurricane Dorian.
Karen Clark & Company estimates the total property damage from Hurricane Dorian, excluding infrastructure and autos, could be as high as $7 billion in the Bahamas.
Hurricane Dorian caused as much as $7 billion in property damage in the Bahamas when it struck Abaco and Grand Bahama Island with wind gusts as high as 225 mph.
Costs of Hurricane Dorian could reach $7 billion in the Bahamas, according to a preliminary estimate from Karen Clark & Company.
In an article discussing the impacts of Hurricane Dorian, KCC’s $7 billion total loss estimate (insured and uninsured) for the Bahamas was referenced.
Hurricane Dorian brought wind speeds of 185 mph to the Bahamas, and total losses are $7 billion, according to Karen Clark & Company.
In an article discussing the impacts of Hurricane Dorian in the US and Caribbean, KCC’s Special Report, Hurricane Dorian Impacts on the Bahamas, was referenced.
The Bahamas have received a direct hit from Hurricane Dorian resulting in devastating property damage. KCC estimates the total insured and uninsured losses in the Bahamas will be $7 billion, excluding infrastructure and auto losses.
A preliminary estimate from catastrophe modeling firm Karen Clark & Company indicates total insured and uninsured losses from Hurricane Dorian in the Bahamas will be around $7 billion. Because this does not include infrastructure or auto losses, the full economic cost is likely to be higher.
Areas of Abaco have been destroyed by Hurricane Dorian, leaving survivors with nothing. KCC estimates the total losses (insured and uninsured) in the Bahamas is $7 billion, excluding infrastructure and autos.
Areas of Abaco have been destroyed by Hurricane Dorian, leaving survivors with nothing. KCC estimates the total losses (insured and uninsured) in the Bahamas is $7 billion, excluding infrastructure and autos.
Karen Clark & Company estimates that the total insured and uninsured losses from Hurricane Dorian in the Bahamas will be $7 billion, excluding infrastructure and auto losses. Losses would have been higher had Dorian’s peak winds impacted New Providence, the most populated island.
KCC’s total loss estimate for Hurricane Dorian in the Caribbean was included in the BBC’s daily round-up of business news.
Based on KCC’s new white paper, industry earthquake losses in Japan fall between $2-3 billion annually. A repeat of the 1923 Kanto earthquake could bring $225 billion in industry losses.
While large magnitude events near Tokyo could cause $3 trillion in total property loss, annual earthquake losses in Japan are around $2-3 billion, based on the new KCC Japan Earthquake Reference Model.
In an article discussing an increase in homeowners buying earthquake insurance policies following the Ridgecrest Earthquake, KCC’s insured loss estimate for the event is referenced.
According to Karen Clark & Company’s new Japan Earthquake Reference Model, a Kanto-strength earthquake in the Tokyo region could generate $1.5 trillion in total property losses.
Japan is one of the most seismically active areas of the world, and a major earthquake in the Tokyo region could result in $3 trillion in total property loss, according to a new KCC report.
An analysis based on Karen Clark & Company’s new Japan Earthquake Reference Model indicates that a large magnitude earthquake impacting Tokyo could result in $3 trillion in total property losses.
Tokyo is located in a seismically active region, and a large earthquake impacting Tokyo could cause $3 trillion in total property loss, according to a new report by KCC.
According to KCC, a repeat of the 1923 Kanto earthquake could result in property losses as high as $1.5 trillion, while a higher magnitude event could cost as much as $3 trillion.
Karen Clark & Company reports losses from a repeat of the 1923 Kanto Earthquake could generate $1.5 trillion in property losses, with a larger magnitude event in the same area causing $3 trillion in total loss.
Karen Clark & Company was named a finalist in the “Risk Modeling Firm of the Year” category for the 2019 North America Awards given by Reactions.
Ms. Karen Clark, KCC CEO and Co-Founder, Dr. Dan Ward, KCC Senior Meteorologist, and Dr. Mohammad Shoraka, KCC Senior Flood Engineer, were interviewed by NBC10 meteorologist, Chris Gloninger, about the impacts of a major hurricane in Massachusetts.
In an article about the Ridgecrest Earthquake, Karen Clark & Company places this disaster in the context of other natural catastrophes and the earthquake insurance market in California. According to KCC, the earthquake will result in less than $40 million in insured loss.
An article discusses Karen Clark & Company’s recent loss estimate for the Ridgecrest Earthquake and findings of a post-event damage survey.
Karen Clark & Company reports that the earthquakes occurring July 4-5 will result in overall damages of $200 million, of which the insured loss is likely to be less than $40 million.
Karen Clark & Company released an Event Brief that estimates the total loss from the event will be around $200 million.
The recent earthquakes that impacted southeastern California are expected to cause around $200 million in economic losses but only around $40 million in insured losses.
In an article about Hurricane Barry, KCC’s insured loss estimate is referenced while discussing impacts from the storm.
Karen Clark & Company estimates that the insured losses from hurricane Barry will be around $300 million.
Karen Clark & Company’s insured loss estimate of $300 million is referenced in an article discussing the impacts of Hurricane Barry.
Excluding the National Flood Insurance Program (NFIP), Karen Clark & Company estimates insured losses from Hurricane Barry will be near $300 million.
Insured losses from Hurricane Barry will be nearly $300 million and were driven by an accumulation of small losses over a large area, according to Karen Clark & Company.
Hurricane Barry did not produce as intense precipitation as initially forecast, but the wind and storm surge impacts are expected to cause close $300 million in insured losses, according to Karen Clark & Company.
Catastrophe risk modeler Karen Clark & Company has estimated that industry insured losses will be close to $300 million.
KCC estimates that the industry insured loss will be around $300 million, including privately insured wind and storm surge damage to residential, commercial, and industrial properties, as well as automobiles. Considering Barry’s modeled impacts, there will likely be minimal effects on the reinsurance market.
At the International Insurance Society's Global Insurance Forum in Singapore, Karen Clark discussed the continuing evolution of cat risk models, KCC's efforts to introduce greater transparency, efficiency and accuracy into the models, and how improving data collection in Asia will lead to better modeling outcomes for the region.
The KCC US Hurricane Reference Model Version 2.0 estimates that a strong Category 5 hurricane making landfall in Miami would result in $200 billion in residential insured loss. This extreme event is included in the KCC hurricane model, which has been certified by the Florida Commission on Hurricane Loss Projection Methodology.
KCC catastrophe modeling experts indicate that a Category 5 hurricane making landfall near Miami would cause over $200 billion in insured residential loss, which is one of the extreme scenarios included in the KCC US Hurricane Reference Model Version 2.0. The KCC hurricane model has been certified by the Florida Commission on Hurricane Loss Projection Methodology and was the first new model certified since 2006.
Forecasters are predicting an average or below-average 2019 hurricane season, but it only takes one landfalling storm to make a big difference. Karen Clark discusses lessons insurers and reinsurers have learned from previous hurricane seasons.
Karen Clark comments on the challenges, and potential impacts, of incorporating climate change into catastrophe risk models.
The International Insurance Society (IIS) has announced Karen Clark, President and CEO of Karen Clark & Company, as the 2019 recipient of the prestigious John S. Bickley Founder’s Award. Ms. Clark is recognized as the creator of the first catastrophe model and is credited with inventing the catastrophe modeling industry which revolutionized the way re/insurers understand and manage catastrophe risk.
Producing top wind speeds of 155 mph, Hurricane Michael made landfall with enough power to completely destroy homes and cause weeklong power outages. Boston-based Karen Clark & Company, a risk-modeling firm that produces models for catastrophes, estimates that Hurricane Michael caused about $8 billion in insured losses, including wind and storm surge damage to residential, commercial and industrial properties and automobiles.
In its estimate of $8 billion in insured losses, KCC said that nearly half of the losses occurred in Florida’s Bay and Gulf counties as a result of damage to commercial and residential property.
Reaching peak intensity of 155 mph just before landfall, Karen Clark and Company noted that Michael is the strongest hurricane to impact the Florida Panhandle in recorded history. Residential structures impacted by the Category 4 winds sustained heavy damage. Once the roofs are blown off, single family homes will fail due to the loss of structural integrity, KCC noted.
Risk modeling firm, Karen Clark & Company, estimates that Hurricane Michael, which ripped through Florida’s Panhandle region, will cost $8 billion in damages to homes, commercial properties, industrial buildings, and automobiles.
Hurricane Michael, which made landfall in the Florida Gulf Coast on Thursday, October 11, has been characterized as one of the most powerful hurricanes to ever hit the U.S. The severity of the storm contributes to the KCC estimate of $8 billion in insured property losses.
Using its high-resolution US Hurricane Reference Model to derive the loss estimate of close to $8 billion, KCC’s figure is high enough to suggest that reinsurance interests will take a reasonable share of the losses from Hurricane Michael, including a share for collateralized reinsurers and ILS funds.
KCC estimates private insured losses to residential, commercial, and industrial properties and cars from Hurricane Florence at $2.5 billion. That figure does not include NFIP losses.
In its Flash Estimate of insured losses from Hurricane Florence, Karen Clark & Company explains that “a combination of increased wind shear, land interaction with the US coast, and an upwelling effect caused Florence to weaken prior to making landfall.” As a result, Florence came ashore near Wrightsville Beach, North Carolina as a Category 1 storm.
Karen Clark & Company’s estimate of insured losses from Hurricane Florence is based on the firm’s high-resolution US Hurricane Reference Model and incorporates privately insured wind, storm surge, and inland flooding damage to residential, commercial, and industrial properties and automobiles.
According to Karen Clark, the estimated insured market loss from Hurricane Florence is expected to be close to $2.5 billion.
As Hurricane Florence swept through North Carolina, bringing storm surge and heavy rain, modeling firm Karen Clark & Company assessed the total property at risk at almost $2 trillion. That figure includes homes, commercial buildings, industrial buildings and automobiles.
While it’s difficult to link any specific event to global warming, Karen Clark explained the likely impacts to AM Best TV at this year’s Monte Carlo Rendez-Vous de Septembre.
In this interview with Intelligent Insurer at this year’s Monte Carlo Rendez-Vous de September, Karen Clark explains why open models and real-time cat data are valuable to traders.
In an interview at this year’s Monte Carlo Rendez-Vous de Septembre Karen Clark explains how the cat models can be better.
Karen Clark & Co estimates that the insured losses from Tropical Storm Gordon will be a result of the sustained 70 mph winds the storm brought to the Alabama/Mississippi border when it made landfall on September 4.
Utilizing its high-resolution US Hurricane Reference Model, Karen Clark & Company estimates $125 million in insured losses to residential, commercial, and industrial properties resulting from Tropical Storm Gordon.
Expected to intensify to a Category 1 hurricane due to warm sea surface temperatures and relatively-low wind shear over the Gulf, Gordon instead made landfall as a tropical storm, resulting in an estimate of $125 million in insured losses, according to Karen Clark & Company.
Advanced weather forecasting and detection technologies are now enabling insurers to know in advance where there’s likely to be high wind, hail and even tornadoes. Karen Clark discusses how sophisticated modeling technology enables insurers to translate these weather forecasts into precise estimates of claims and insured losses.
Open models and tools to track hurricanes in real time can help boost modeling accuracy and aid the claims process after storms, according to a new Karen Clark & Company analysis of the 2017 Atlantic hurricane season and its aftermath.
According to catastrophe risk modeling firm Karen Clark & Company, the June 6 Texas hailstorm could be one of the largest single convective storm loss events of the year thus far.
Karen Clark & Company expects losses for the insurance and reinsurance industry to be as much as $1 billion from the hailstorm that impacted Dallas, Tarrant and Denton counties in Texas, as well as other regions, on June 6. KCC said the majority of damage would be to residential and commercial roofs, windows, skylights and solar panels, as well as to automobiles, with the greatest losses in Texas.
In an interview with Reinsurance News, Karen Clark explains that the biggest surprise of the 2017 hurricane season was the wide ranges and disparity in the modelled loss estimates for hurricanes Harvey, Irma and Maria issued by the major modeling firms.
A recent white paper from Karen Clark & Company highlights the value of open models and advanced tools that allow insurers to track hurricanes in real time and to leverage their detailed claims data.
Karen Clark & Company estimates minimal impact from Subtropical Storm Alberto in the United States, with insured losses close to $50 million.
Based on the KCC High Resolution US Hurricane Model, Karen Clark & Company estimated insured losses in the U.S. from Subtropical Storm Alberto at close to $50 million. Modelled estimates include losses to residential, commercial and industrial properties and vehicles.
A KCC report describes the severe convective storms that hit several U.S. states from May 11 to May 16 as characterized by a lack of strong upper level winds, noting that due to a limited number of rotating supercells, most of the damage was caused by hail and high winds rather than tornadoes.
According to a KCC report, the greatest levels of damage from the May "Ring of Fire" series of severe convective storms were reported in states across the Midwest, Northeast, and Mid-Atlantic. KCC estimates that as many as 12 states will see insured losses surpassing $100 million each.
A report from Karen Clark & Company states that most of the U.S. severe convective storm activity in mid-May was along an arc from Texas to Kansas, through the Ohio Valley to the Mid-Atlantic states, which meteorologists refer to as a "ring of fire."
‘The model damage functions by necessity are ‘average’ and apply to the typical company, but no insurer is average, so another way to make the models more accurate is to enable customization based on actual claims experience," says Karen Clark.
KCC analyses of insurer claims data have revealed that PCS defined catastrophes capture only a portion of insurer losses from severe convective storms. KCC’s new model provides insurers with estimates of their total SCS losses for underwriting and pricing purposes.
New research from Karen Clark & Company shows annual expected insured losses from severe convective storms in the United States is approaching $25 billion, higher than hurricane and earthquake perils combined.
Drawing an analogy to the capabilities of today’s smartphones, Karen Clark discusses how insurers now have options to upgrade from traditional landline-type cat models, which may lack real-time information, visualization and exposure management tools, to smarter application-rich modeling platforms.
When it comes to estimating return periods for the major landfalling hurricanes of 2017, there is much variation among cat risk modelers. KCC estimates a return period of approximately 25 years for a Hurricane Harvey in Texas, 10 years for an Irma in Florida, and 200 years for a repeat of a Maria in Puerto Rico.
In this article, Karen Clark discusses how newer open loss modeling platforms provide more timely and accurate information on hurricanes in real time and how real time loss estimates are important indicators of overall model accuracy.
In introducing Karen Clark & Company’s Severe Convective Storm Reference Model, Ms. Clark explains that while this peril does not pose a solvency threat to most insurers, "claims from severe thunderstorms eat away at earnings each year."
With severe convective storm (SCS) losses trending upward, Karen Clark & Company’s new SCS Reference Model, which includes more than 100 historical events, will help insurers more accurately reproduce SCS losses.
Karen Clark & Company’s new multi-peril Severe Convective Storm Reference Model, licensed as part of the company’s RiskInsight® open loss modeling platform, simulates the hazards of hail vs. tornadoes and straight-line winds, separately.
Karen Clark & Company’s new Severe Convective Storm Reference Model shows average annual losses in the U.S. from this type of peril are approaching $20 billion, higher than hurricanes and earthquakes combined.
In this article, Karen Clark discusses how new open loss modeling platforms are providing accurate estimates of insurer claims and losses in real time as catastrophes are unfolding and why accurate real time loss estimates mean more accurate EP curves.
In an article analyzing Karen Clark & Company’s $500 million estimate for insured losses from Hurricane Nate, Karen explains that while Nate’s losses are much lower than that of Harvey, Irma, or Maria, that it still could cause some companies’ aggregates to erode even further.
In an article examining Karen Clark & Company’s insured loss estimates for Hurricane Nate, Karen explains that Nate was expected to be a higher-category storm, and quickly dissipated once it made landfall.
In an article examining Hurricane Nate, Karen Clark & Company is reference for estimating the insured losses to reach $500 million.
In an article analyzing Karen Clark & Company’s $30 billion insured loss estimate resulting from Hurricane Maria, the figure is compared to those of other estimates within the cat modeling industry.
In an article examining Karen Clark & Company’s loss estimate from Hurricane Maria, the losses are broken down into different categories including residential, commercial, industrial and auto, among others.
In an article evaluating the $30 billion insured loss estimate from Hurricane Maria, the losses are broken down geographically for Puerto Rico, the US Virgin Islands, Dominica, Guadeloupe, among others.
In an article analyzing the insured loss estimate from Karen Clark & Company in regards to Hurricane Maria, the piece details that the majority of the losses came out of Puerto Rico.
In an article evaluating Karen Clark & Company’s $30 billion insured loss estimate, the piece focuses on the geographical breakdown of where the losses came from.
In an article evaluating the Caribbean islands affected by Hurricane Maria, Karen Clark explains that Guadeloupe has estimated insured losses of $119 million.
In an article illustrating the various insured loss estimates and the disparity amongst catastrophe risk modelers, Karen Clark is referenced for her $30 billion insured loss estimate for Hurricane Maria.
In an article analyzing the $30 billion insured loss estimate from Hurricane Maria, Karen Clark explains that Maria was the strongest hurricane to hit Puerto Rico in decades and how it strengthened from a Category 1 to a Category 5 hurricane in only 15 hours.
In an article evaluating Karen Clark & Company’s $30 billion insured loss estimate, the piece notes that Hurricane Maria was similar to the San Felipe II Hurricane that struck Puerto Rico in 1928.
In a bylined article, Karen explains how, despite the significant amount of devastation that it brought with it, Hurricane Andrew proved to ultimately be beneficial for cat modeling technology. Karen focuses on lessons learned following the devastating disaster and how it relates to Canada.
The traditional catastrophe model output does not provide the timely and granular data senior executives want when storms like Irma and Harvey are unfolding...
In an article analyzing both the physical and economic devastation of Hurricane Irma on the state of Florida, Karen Clark speaks with Martha White on why even though Irma was not as powerful as it was once expected, it still caused enormous damage and will cost more in insured losses.
In an article that examines the damage in Florida resulting from Hurricane Irma, Karen Clark & Company is referenced for estimating $18 billion in insured losses.
In an article analyzing the effects that Hurricane Harvey and Irma have had on reinsurers, Karen Clark & Company is referenced for insured loss estimates of $25 billion for Irma and $15 billion for Harvey.
In an article evaluating the severity of Hurricane Irma and the damage it caused, Karen Clark explains her $25 billion insured loss estimate and how she estimates that most of the impacted Caribbean islands had over 50% of destroyed property values.
In an article examining the insurance industry’s struggles to procure adjusters following Hurricane Irma, Karen Clark is quoted for her $25 billion insured loss estimate.
In an article analyzing the estimated insured losses resulting from Hurricane Irma, Karen Clark explains what losses are included in the $25 billion total and which are not, such as crop losses.
In an article evaluating Karen Clark & Company’s $25 billion insured loss estimate, Karen speaks with Jenny Staletovich to discuss how she reached that number and shared a chart illustrating what historical hurricanes would cost the insurance industry today.
In an article examining, the insured loss estimates for Hurricane Irma, Karen Clark explains how the total figure of $25 billion gets calculated using storm surge, inland flooding and wind models.
In an article analyzing Karen Clark & Company’s $25 billion insured loss estimate for Hurricane Irma, Karen Clark explains which sectors these estimated insured losses come from.
In an article evaluating Karen Clark & Company’s $25 billion insured loss estimate for Hurricane Irma, the article explains the breakdown for both the US and the Caribbean islands.
In an article evaluating how insurers use catastrophe models to help prepare for natural disasters, Karen Clark speaks with Elliot Kass on the changes in cat models since Hurricane Andrew.
In an article evaluating how much damage Hurricane Irma could cost, Karen Clark & Company is referenced for estimating that Irma could cause over $120 billion of insured damage losses in a worst-case scenario possibility.
In an article examining the vulnerabilities of Tampa, Florida, Karen Clark explains how damages from Hurricane Irma in Tampa could have the potential to reach $175 billion.
In an article analyzing Hurricane Irma’s projected path towards Tampa, Karen Clark & Company’s 2015 report illustrates the vulnerabilities that Tampa has for hurricanes.
In an article evaluating the potential future devastation of Hurricane Irma as well as Tampa being extremely vulnerable, Karen Clark refers to Tampa as a "large funnel" for surges.
In an article analyzing the struggles facing multiple Florida cities, a 2015 Karen Clark & Company report is referenced as estimating potential losses due to flooding in Tampa to be $175 billion.
In an article examining the change in Hurricane Irma’s path from the east coast to the west coast of Florida, Karen Clark & Company’s 2015 report is mentioned for naming Tampa as the most vulnerable city to flash flooding.
In an article evaluating which major cities in Florida could most likely be affected by Hurricane Irma, a 2015 Karen Clark & Company report is referenced that ranks the top most vulnerable cities to hurricanes.
In an article evaluating Tampa’s vulnerability to hurricanes, Karen Clark & Company’s 2015 report estimates that a storm the size of Irma could cause $175 billion of damage to Tampa. The article goes on to describe the potential damages and what makes Tampa and Florida in general so vulnerable to hurricanes.
In an article examining Tampa and what makes the city so vulnerable to hurricanes, a 2015 Karen Clark & Company report illustrates how water from hurricanes can get trapped in the bay causing massive flooding.
In an article analyzing the powerful storm surges to come from Hurricane Irma and the effects of hurricanes in the past to have hit Florida, Karen Clark explains how a repeat of Hurricane Andrew from 1992 would likely cost upwards of $50 billion in insured losses.
In an article evaluating Security First, Karen Clark & Company’s RiskInsight modeling tool is explained as a way to estimate claims.
In an article analyzing the effects of Hurricane Harvey on insurers and what will come from Hurricane Irma, Karen Clark & Company’s $15.4 billion insured loss estimate for Hurricane Harvey is referenced with the potential to grow once Irma hits the US.
In an article that examines Karen Clark’s new modeling platform, RiskInsight-lite, Karen Clark explained how reinsurers can benefit from the new platform. The article also mentions Karen Clark & Company’s loss estimates for Hurricane Harvey and how reinsurers could use the new platform in regards to analyzing potential losses from Hurricane Harvey, even days before landfall.
In an article analyzing the abridged version of RiskInsight, Karen Clark explains how RiskInsight-lite will help reinsurers to be able to examine storms in real time. Karen Clark details how now RiskInsight-lite users can customize the model to be able to reflect their own storm experiences.
Karen Clark & Company has released the RiskInsight-lite model. This modeling platform allows for reinsurers to track claims and losses in real time. The article also mentioned Karen Clark’s estimates for insured losses following Hurricane Harvey.
In an article examining the aftermath of the destruction left behind by Hurricane Harvey, Karen Clark is quoted for her estimated $15 billion total industry-insured loss. The article explains the many combined factors of heavy rain and high winds as the main factors for why the storm was so damaging.
In an article analyzing how insurers will handle the billions of dollars in losses from Hurricane Harvey, Karen Clark speaks with Matthew Lerner about how the biggest loss that insurers will face is due to flooding.
In an article evaluating the destruction caused by Hurricane Harvey, Karen Clark estimates wind-driven insured losses in the low billions.
In an article discussing the insured loss estimate of Hurricane Harvey, Karen Clark explains how KCC’s modelling depicts the majority of the losses coming from inland flooding.
In an article evaluating the destruction of Houston and other areas affected by Hurricane Harvey, Karen Clark discusses how the record rainfall and slow movement led to the devastation. Karen goes onto further explain how the storm’s presence over the Gulf of Mexico provided Harvey with a surplus source of water.
In an article that explains the losses and severity of Hurricane Harvey, Karen Clark is quoted for her estimate of $15 billion in insured losses.
In an article examining the damage from Hurricane Harvey, Karen explains how her catastrophe model estimates that the insured losses from Hurricane Harvey have the potential to reach $15 billion.
In an article evaluating the loss estimates for Hurricane Harvey, Karen Clark explains that insurers are encountering up to $15.4 billion in losses, mainly from inland flooding.
In an article evaluating the estimated losses of Hurricane Harvey, Karen Clark explains that the bulk of insured loss will come from inland flooding.
In an article examining the aftermath of Hurricane Harvey, Karen Clark explains how the estimated $15.4 billion in insured losses can be broken down by wind, storm surge, and inland flood losses.
In an article analyzing the devastation of Hurricane Harvey, Karen Clark explains how insured losses could reach upwards of $15 Billion.
In an article analyzing the improvements insurance companies have made since Hurricane Andrew (1992), Karen Clark explains how she believes technological capabilities within the catastrophe modeling field have evolved. Karen also provides her thoughts on the damages that would potentially take place if a hurricane with a similar impact struck today.
In an article examining how Florida’s insurance industry has altered over the past quarter-century since Hurricane Andrew struck, Karen Clark explains how catastrophe models were in the very early stages and not widely used by the industry prior to the disastrous event.
Catastrophe modeling has taken off since the tragic damage left behind by Hurricane Andrew when it struck 25 years ago. Here, Karen Clark explains that while models themselves have not changed fundamentally, the quality of the exposure data has altered drastically.
To mark the 25th anniversary of Hurricane Andrew, Karen Clark participates in a Q&A feature with Reactions. Karen reflects on the wake of the storm’s impact and discusses how catastrophe modeling has since played a pivotal role is estimating potential damages.
To honor the 25th anniversary of Hurricane Andrew, Karen Clark provides her insights on how Miami would be affected if a storm with the same caliber hit the area today. In the article, Ms. Clark states that she believes losses would likely exceed $200bn, almost twice what the insurance industry is suitably prepared for. Ms. Clark goes on to further describe and support how today’s catastrophe models are well established as the global standard methodology for catastrophe risk assessment.
In an article evaluating the long-term impact that Hurricane Andrew has had on South Florida since it made landfall 25 years ago, Karen Clark explains how the approach that companies were using at the time to estimate their catastrophic loss potential was not sufficient. Karen also discusses how insurance companies are now placing a larger focus on exposure growth when developing their catastrophe models.
In this video interview, Karen Clark sits down with John Weber of A.M. Best to discuss her passion for and entry into the catastrophe modeling sector and how the insurance industry has come to embrace these models.
In an article regarding the process of reauthorizing the National Flood Insurance Program (NFIP), Karen Clark provides her views on how technological advancements have helped generate enhanced flood models. The article highlights and references "Increasing Concentrations of Property Values and Catastrophe Risk in the US", a 2015 KCC report.
In this Q&A feature article, Karen Clark discusses the increasing adoption of open loss modeling platforms and how these platforms are helping improve the accuracy of loss estimates. Ms. Clark also explains how every major hurricane event "tends to be a surprise," and how insurers can better prepare for these eventualities.
In an article regarding the new generation of catastrophe models, Karen Clark explains how the future of cat models lies within open-loss modelling platforms, which follow the same fundamental structure as the traditional models, but instead have all the components visible and accessible to the model user.
In this article, Karen Clark discusses the keys to successful innovation in the catastrophe modeling space. Ms. Clark explains how an unwavering vision, an expert, efficient and highly motivated team to implement that vision, and a supportive group of early adopters, came together to reinvent the catastrophe model.
Rating agencies are revising how they incorporate catastrophe loss information into their rating methodologies. Karen Clark discusses these changes and how they could impact reinsurance purchasing and the ILS market.
In an article containing commentary from professionals regarding risks the insurance industry faces in 2017, Karen Clark comments that the industry is still not prepared for a storm as intense as 1992's Hurricane Andrew striking Downtown Miami or a similar urban area.
Karen Clark & Co. released the latest version of its RiskInsight open loss modeling platform. Version 4.4 includes enhancement to the custom model building capabilities and client integration modules, as well as performance improvements.
Karen Clark & Company has updated RiskInsight, its loss modelling platform, to facilitate importing custom events and event intensity files, and to visualise and verify hazard data. Version 4.4 provides "plugins" for creating damage functions based on attributes that are not typically used in traditional models.
Hurricanes and earthquakes that produce major losses are rare phenomena, so there's not a wealth of scientific data for estimating the frequencies of events of different magnitudes in specific locations. But when a significant event occurs, the tens of thousands of resulting claims provide the big data surrounding catastrophes, and this data is very valuable for improving catastrophe models. Here, Karen Clark explains how insurers can leverage their own claims data for more credible catastrophe loss estimates and for competitive advantage.
Newer, open hurricane models are addressing three "wishes" for the insurance industry, offering less volatile loss estimates, higher visibility into the key assumptions driving losses, and more intutitive and actionable risk metrics. Traditionally, users have interacted with the models to manage hurricane risk, but thanks to these newer platforms, users now have the opportunity to customize and gain more insight into loss potential.
Karen Clark discusses changes to catastrophe modeling, including demand from insurers and reinsurers for platforms that allow more sources and customization of models to reflect the individual organization's view of risk.
In 1992, insurers were shocked by the losses caused by Hurricane Andrew, and many never believed the losses could exceed $13 billion as projected by the first hurricane model. As 2016 hurricane season begins, Karen Clark urges insurers to avoid the complacency of the early 90s about a potential direct hit on Miami.
Cyber risk is rapidly evolving, with a number of sizeable data breaches grabbing headlines in recent years. Insurers, brokers and modelers are working diligently to find a solution to capture risk information and create models. Karen Clark discusses the challenges of modeling emerging risks versus traditional perils, like hurricanes.
Karen Clark & Co. has launched RiskInsight Version 4.3, which features enhancements to its interactive dashboards, custom model building tools and job manager. The updated version of the loss modeling platform also makes it possible to track tornado and severe convective storm, or SCS, events in real time.
Karen Clark & Co. has announced the release of RiskInsight Version 4.3, an update which includes enhancements to its interactive dashboards, custom model building tools and job manager.
RiskInsight Version 4.3 updates include expanded event catalog creation capabilities and an updated job manager that makes it easier to set up complex analyses and distribute them across multiple processors. The platform supports custom models for all peril types, including flood and severe convective storm (SCS), and Version 4.3 will allow users to track tornadoes and SCS in real time, immediately assess exposures, and estimate likely losses.
Karen Clark & Co. has released Version 4.3 of the RiskInsight open loss catastrophe modeling platform. Version 4.3 supports custom models for all peril types, including flood and severe convective storm (SCS), along with expanded event catalog creation capabilities.
Catastrophe models for severe convective storms have existed for decades, but the model loss estimates lack credibility for most insurers. Here, Karen Clark explains why and suggests a new modeling approach.
Karen Clark is profiled as one of the insurance industry's top female leaders. In this Q&A with National Underwriter, Ms. Clark discusses her decision to work in the industry and advice for women looking to enter insurance, her greatest achievements, challenges and opportunities facing the industry.
Karen Clark calls for the insurance industry to embrace open platforms and to move away from overreliance on traditional models. Here, Ms. Clark discusses the emergence of open modeling platforms, the development of Karen Clark & Company's RiskInsight and the future of modeling.
Nozar Kishi and Christopher Mossey have joined the senior management team at Karen Clark & Co. Dr. Kishi brings more than 20 years of catastrophe modeling experience to the firm as Vice President, Model Development. Mr. Mossey comes to KCC with 20 years business development experience and will serve as Vice President, Client Development.
Karen Clark & Co. deepens its expertise with the addition of Nozar Kishi and Christopher Mossey to the firm's senior management team. Dr. Kishi joins as Vice President, Model Development, and will lead several modeling initiatives including the Japan typhoon and earthquake Reference Models. Mr. Mossey joins as Vice President, Client Development and will work with major insurers and reinsurers to leverage the firm's RiskInsight open platform and comprehensive catastrophe management toolkit.
A 2014 U.S. Geological Survey report on earthquake forecasting recognized the possibilities of multi-fault ruptures and background events, where there are no known faults and historical events. Here, Karen Clark explains the implications of the report for insurers and how insurers can better manage their future earthquake losses.
Karen Clark & Company's new RiskInsight Earthquake Reference Model is the first in the industry to account for the findings of the latest US Geological Survey. The new report better recognizes the uncertainty in the locations and magnitudes of future events and includes more multi-fault rupture scenarios.
Karen Clark & Company released a new Earthquake Reference Model as part of the RiskInsight open loss modeling platform to incorporate updated seismicity assumptions and ground motion attenuation functions based on the latest US Geological Survey.
There is an increased probability of magnitude 8 and larger events hitting California, according to a new Karen Clark & Company analysis of the latest US Geological Survey. Karen Clark & Company is the first modeling company to incorporate this set of USGS findings into its earthquake model tool, accounting for new information about risks to California and the Pacific Northwest.
Karen Clark & Company introduces the new RiskInsight Earthquake Reference Model incorporating the latest US Geological Survey report. The model accounts for all fault-based seismic sources and implements gridded background seismicity to account for unknown faults. It can be used to estimate losses on portfolios of properties along with individual policies and accounts.
Karen Clark & Company has released the RiskInsight Earthquake Reference Model to account for the new data and multi-fault rupture scenarios, including an increased probability of magnitude 8 and larger events in California and the higher frequency of earthquakes in the southern section of the Cascadia Seismic Zone.
Hurricane Patricia was one of the strongest storms ever recorded, and its losses could have been far worse had the storm taken a different path. A new report from Karen Clark & Company looks at the potential losses if a storm of equal intensity were to hit downtown Miami, highlighting a growing need for insurance-linked securities to supplement traditional reinsurance for peak U.S. exposures.
Karen Clark discusses industry exposure to hurricanes and earthquakes and why insurers should be focused more on a severe Florida hurricane than a California quake. According to Ms. Clark, a quake would you would need almost a half a trillion dollar loss for the insurance industry to have a loss the size of Katrina. That type of earthquake event is significantly less probable than a $250 billion loss from a Miami hurricane.
According to a report by Karen Clark & Company, the Miami area is the fourth most vulnerable region to storm surge in a 100-year hurricane event. The 100-year event, which for Miami is a Category 5 storm with top wind speeds of 165 mph, would cause nearly $80 billion in losses due to storm surge.
Advancements in technology have made it possible for insurers to build their own catastrophe models, creating a significant opportunity for the insurance industry. Here, Karen Clark explains why insurers are smart to build bespoke models, the characteristics of a model and the model building process.
Karen Clark & Company released an update to RiskInsight® that includes more detailed and interactive underwriter and CEO dashboards, advanced model-building tools and enhanced global mapping capabilities. The updates will enhance user experience and allow insurers, resinsurers and ILS firms to generate their own views of risk.
Karen Clark & Company announced an update to its RiskInsight® platform, helping insurers and reinsurers to better create their own view of risk as expected of them by rating agencies and regulators. The RI4 update includes enhancements to the platform's model-building tools, HazardMapper and DamageRatesManager, to make it easier for model builders to create high resolution probabilistic catastrophe models reflecting their own knowledge, expertise and views of risk.
The newly released RI4 update to RiskInsight® allows insurers and reinsurers to build hurricane and earthquake models anywhere in the world by adding custom event catalogs and damage functions appropriate for specific peril region. The open platform tool’s update includes detailed global soil maps and terrain datasets covering all countries and territories.
Karen Clark & Company released a new update to its RiskInsight® open model platform, which will allow firms to develop and generate high resolution probabilistic catastrophe models reflecting their own knowledge, expertise and views of risk. This capability is a key development for the reinsurance and ILS market in particular.
With the RI4 update for RiskInsight®, users will have access to advanced model-building tools as well as better mapping capabilities and enhanced dashboards to generate their own views of risk.
Although much attention is paid to New Orleans and New York, the Tampa/St. Petersburg area is actually more vulnerable to storm surge flooding than those cities. A report from Karen Clark & Company found that wider, more gently sloping continental shelves with large shallow water areas put the Florida coastline at high risk. Other Florida cities ranking in the top eight U.S. cities most vulnerable to storm surge include Miami, Fort Myers and Sarasota.
To mark the 10th anniversary of Hurricane Katrina, catastrophe risk experts studied the potential losses for U.S. cities vulnerable to storm surge, with new research pointing to Tampa as most at risk. Here, Trading Risk compares rankings from Karen Clark & Company's "Most Vulnerable US Cities to Storm Surge Flooding" report with other industry estimates.
Hurricane Katrina created significant change in the insurance industry, from risk management to preparedness and catastrophe modeling. Karen Clark discusses the post-Katrina development of open loss modeling platforms and the characteristic event method for monitoring exposure accumulations.
To mark the 10-year anniversary of Hurricane Katrina, Reactions examines how the storm changed the re/insurance space, including the spur in innovation for the modeling industry in response. Exposure data quality and models that did not account for storm surge were cause for much of the shock insurers felt after Katrina. In response, Karen Clark founded Karen Clark & Company to address the gaps in traditional models by creating a more transparent tool for evaluating risk and exposure.
A decade after Hurricane Katrina devastated New Orleans, coastal cities are still extremely vulnerable despite infrastructure such as levees. A recent Karen Clark & Company report on cities most vulnerable to storm surge is cited in this analysis of continued risk for U.S. cities.
Flooding from a 100-year hurricane could spur losses exceeding US$100 billion in three cities – Tampa Bay/St. Petersburg, New Orleans and New York – according to a new report from Karen Clark & Company. Due to its unique coastline features, local bathymetry and the low coastal elevations, Tampa Bay/St. Petersburg ranks as the most vulnerable.
The Tampa Bay/St. Petersburg area is the most vulnerable U.S. region to flood damages from a 100-year hurricane, a new study from Karen Clark & Company found. Tampa's 100-year hurricane is defined as a strong category 4 with top winds of 150 mph, and storm surge damages from such a storm would reach up to $175 billion. The study also ranks Fort Myers, Miami and Sarasota in the top eight most vulnerable U.S. cities.
Following Hurricane Andrew, insurers realized the importance of catastrophe models in managing risk. More than a decade later, their overdependence on the traditional models became apparent in the wake of Katrina. Here, Karen Clark discusses the innovation that occurred after Katrina to bring greater transparency to risk modeling.
The insurance industry faced unanticipated losses in the wake of Hurricane Katrina, revealing an overreliance on traditional catastrophe models. In response, the industry has seen a number of crucial advances in open platform technology and storm surge modeling to better manage catastrophe risk.
A new report from Karen Clark & Company finds Tampa and St Petersburg are the US cities most vulnerable to storm surge risk, with a loss potential of $175 billion. The report also notes that most of the flood damage potential, across the ten most vulnerable cities, is not currently insured, presenting a big opportunity for insurers.
Due to demographic factors, Canada is more vulnerable to floods and earthquakes than hurricanes. With the exception of a few fast-moving hurricanes, like the Great New England of 1938 and Hazel of 1954, Canada has not been greatly impacted by North Atlantic storms. Here, Karen Clark looks at whether climate change and increased hurricane intensity could expand geographic impact and make Canada more susceptible to North Atlantic storms.
Climate change has had no measurable impact on hurricane activity to date, according to Karen Clark. The loss potential for the catastrophe market resulting from North Atlantic hurricanes is basically the same this year as it was last year, which is roughly the same as five years ago, and will most likely be the same in another five years.
While climate change is impacting hurricane formation and intensity, the five-year time horizon relevant to most investors shows that other factors are more important to predicting cat losses, such as accurately forecasting hurricane landfalls, according to a report from Karen Clark & Company. Investors with a longer investment horizon should keep in mind that longer-term conditions should see a higher demand for catastrophe reinsurance.
Losses from hurricanes could double by the end of the 21st century due to conditions created by climate change. Storm surge losses are likely to increase with rising sea levels, and greater maximum wind speeds will compound the hurricane losses in vulnerable areas. These changes will drive demand for catastrophe reinsurance in the long-term, but the near-term market should remain relatively unaffected.
Investors in catastrophic hurricane insurance markets have little to fear from the effects of climate change because their time horizon– typically three to five years – is much shorter than the time frames climatologists consider when studying climate change, according to a report from Karen Clark & Company.
Despite predictions of a quiet hurricane season, Category 5 storms can happen at any time. Karen Clark reflects on Hurricane Andrew, one of only three Category 5 hurricanes to hit the U.S coast since 1900, which hit during an inactive hurricane season.
In this profile, Karen Clark shares her perspective on her career, leadership and innovation. Ms. Clark discusses the passion that led her to create the first cat modeling company and to continue to develop new technologies and resources for the insurance industry.
As of last year, U.S insured property values exceed $90 trillion with significant pockets of concentrated value in vulnerable coastal areas. New risk management metrics, like the Characteristic Event approach, can better help monitor these exposures, according to a new report from Karen Clark & Company.
Highly vulnerable areas such as metro-Miami, Los Angeles, the Galveston-Houston region and Atlantic coasts account for a large portion of the U.S. insured property values. A new report from Karen Clark & Company calls for the insurance industry to adopt additional tools to develop a more comprehensive view of risk and to better understand the potential losses accompanying increasing property values.
Karen Clark & Company’s new report, Increasing Concentrations of Property Values and Catastrophe Risk in the US, examines the potential impact of rising property values and how innovative insurance and reinsurance methods and insurance-linked securities (ILS) can more effectively monitor their concentrate exposure.
Karen Clark & Company has found, when contents and time element exposures are added in, estimated insured property values in the U.S. exceed $90 trillion. Increasingly concentrated pockets of exposure leave insurers vulnerable to mega-catastrophe losses due to natural disasters.
A new analysis from Karen Clark & Company has found that if a 100 year hurricane were to hit Miami, it would create $250 billion in losses, which is double what’s projected by current PMLs. Increased property values and a high concentration of value has made urban coastal areas more vulnerable than ever, and insurers need to develop a more comprehensive view of their exposure in order to manage risk in these regions.
As noted in a new report from Karen Clark & Company, coastal property values in Florida have risen from $870 billion to over $3.7 trillion since Hurricane Andrew struck south of Miami in 1992. Because of steadily increasing property values, in Miami and other U.S. coastal areas, the potential insured losses from natural disasters are much larger than what most insurers have assumed their maximum losses could be.
Karen Clark & Company estimates that insured property values increased 9% from 2012 to 2014. In a new report, Increasing Concentrations of Property Values and Catastrophe Risk in the U.S., KCC uses Characteristic Events to illustrate why insurers should be monitoring exposure concentrations in light of increasing property values in vulnerable areas like California, Florida and Texas.
The insurance industry typically uses multiples of probable maximum losses (PMLs) to manage risk, and rating agencies and regulators rely on those calculations to monitor solvency. However, PMLs do not account for the increasing property values and concentrated areas of exposure along the U.S. coastline. A new report from Karen Clark & Company identifies these vulnerable regions and offers the Characteristic Event methodology as an additional tool insurers can utilize to gain greater insight into their exposure to losses.
Highly concentrated property values mean insurers will face losses that far exceed their estimated 100 year probable maximum loss, according to a new report from Karen Clark & Company.
Property values along the coasts and in earthquake-prone areas continue to grow faster than the general rate of growth across the country, according to a new report from Karen Clark & Company. The cost to replace structures damaged by natural disasters has grown too, which is a key reason insurers should be incorporating new methods of monitoring their concentrated exposure.
The variety in types of flood makes it difficult to define the peril and develop one standard catastrophe model. Despite this challenge, insurers can use open modeling platforms to evaluate flood risk. Here, Karen Clark examines flood risks for the Canadian market and how scenario-type models can inform underwriting and risk management decisions.
Insurers and reinsurers are looking for access to climate-related data, and catastrophe modeling companies are updating their tools to meet the demand. Karen Clark discusses how the RiskInsight® HazardMapper module helps clients to test the impact of potentially more frequent extreme weather events on their portfolios.
The catastrophe model-generated EP curves—and more specifically the "probable maximum losses" (PMLs) derived from those curves—provide only a partial picture of a company's large loss potential. Adding newer information on return period events, where the probabilities are based on the hazard versus the loss, gives more insight into tail risk and provides advanced metrics for monitoring "informal" risk tolerances. Here, Karen Clark illustrates how one chart can summarize multiple risk metrics for a succinct and complete picture of your company's catastrophe loss potential.
Karen Clark & Company announced the release of its detailed, high resolution and fully transparent storm surge model for the U.S. The new storm surge model accounts for all of the influences on coastal flooding, including storm intensity, radius of maximum winds, coastal bathymetry, and the presence of inlets or bays.
The new US storm surge model from Karen Clark & Company, which will be presented to the Florida Commission on Hurricane Loss Projection Methodology this month, allows users to identify locations vulnerable to storm surge flooding.
Because companies feel they can't assess the loss potential for flood and storm surge accurately, they are hesitant to offer more insurance, according to Karen Clark. KCC's new U.S. storm surge model will provide insights to help the development of the private flood market.
Karen Clark & Company's new high-resolution U.S. storm surge model may help ILS investors to get more comfortable with this risk by offering greater transparency into localized perils.
Part of the RiskInsight platform, Karen Clark & Company's new U.S. storm surge model allows insurers to identify locations vulnerable to storm surge flooding, calculate the total insurable value they have exposed by water depth and apply detailed vulnerability curves to estimate losses.
The new U.S. storm surge model from Karen Clark & Company will allow insurers to determine of total insured value by exposed water depth and vulnerability curves as well as to assess portfolio losses with and without storm surge and leakage assumption. The model also produces the 100 - and 250 - year flood zones along the coast.
Karen Clark & Co. estimates the August 24 south Napa earthquake caused $1 billion in damages, of which 40 percent were residential losses. The estimate is more than twice the original early estimates by local governments. Of the $1 billion in damages estimated by KCC, only $100 million is covered by insurance.
Karen Clark explains the sizeable role of the U.S. market in the global insured catastrophe risk space and what portion of loss potential comes from East Coast alone.
Open platforms enable insurers and reinsurers to incorporate and test the impacts of new scientific research much faster than using the traditional vendor models. Here, Karen Clark explains how these new advanced tools are already being used for greater visibility into the key drivers of profit and loss and to gain competitive advantage.
Karen Clark discusses innovation, demand for open model platforms and the changes to access the insurance industry will see develop as we enter 2015.
In the wake of Superstorm Sandy, the insurance industry and legislators were actively discussing ways to achieve more transparent and effective flood modelling tools. Although legislation hasn’t sufficiently addressed U.S. flood perils, here Karen Clark describes how Big Data and open platform technology is enabling insurers to own their risks for flood and other perils.
Insurance-linked securities investors are now utilizing open platforms in addition to traditional models to assess risk, according to Karen Clark.
Karen Clark explains how insurers and reinsurers can construct their own catastrophe models for unmodelled perils in an open platform using four key components — the event catalog, event intensity footprints, damage functions and financial module — to convert damage to insured loss with full transparency.
Karen Clark joins A.M. Best TV’s Kate Smith for a discussion of Characteristic Events and how this new methodology is being used by insurers and reinsurers to manage hurricane and earthquake risk.
Using her frequent interactions with rating agencies as a guide, Karen Clark dispels some myths about what agencies want to know about the use of catastrophe models by carriers they rate and about carrier cat loss potential. It's not about the model, but about the model assumptions selected and the credibility of the loss estimates.
Karen Clark explains why, although overlooked by many insurance companies, the La Habra earthquake of March 2014 is a good indicator for the extent of damage that could be caused by a quake of a greater magnitude along the Puente Hills Fault. Ms. Clark calls for the industry to look at what could happen, not to rely solely on the research already available and based on past earthquake events.
A new briefing from Karen Clark & Company deconstructs what is known as the 2014 La Habra Earthquake, a magnitude-5.1 earthquake that hit the Greater Los Angeles area. The report examines what happened in March and analyzes the potential for significantly greater damage along the Puente Hills fault during earthquakes of greater magnitude.
A powerful feature of the characteristic event approach to risk modelling is losses from all lines of business can be aggregated for each event and the market shares calculated on a combined basis.
A 100-year hurricane could occur during "slow" hurricane seasons, resulting in significant, "surprise" insurance industry losses. Here, Karen discusses how KCC's Characteristic Event approach can help predict losses and expose vulnerability to better prepare insurers.
Karen Clark & Company’s new report on 100 Year Hurricanes explains why Texas may be due for its own Hurricane Andrew after a quiet 2013 hurricane season.
The probable maximum loss (PML) risk metric can lead insurers to have a false sense of security, according to Karen Clark & Company. This leaves insurance companies vulnerable to a 100 year Characteristic Event that could cause losses exceeding $100 billion.
Karen Clark explains how using the 100-year Characteristic Event can show insurers any concentrations of exposure and potential market share of any modeled losses at an individual landfall point.
For most companies a 100 year Characteristic Event (CE) loss will be much greater than a 100 year probable maximum loss (PML), according to a new report from Karen Clark & Company. The (CE) analysis gives ILS investors additional information – illustrating the exposure and loss potential of an issuer – which offers better estimates on financial losses.
Karen Clark discusses how updates to the USGS Seismic Hazard Maps will impact catastrophe models used to assess earthquake risk.
Karen Clark discusses the growing industry demand for more transparency in cat models and how open platforms that allow insurers and reinsurers to integrate the software with their own processes helps address key supplier risk.
Catastrophe modeling firms are changing their platforms to address insurer and reinsurer needs for more model choice and greater transparency —but they're not all doing it the same way. Here, Karen Clark explains the differences between multimodel platforms, open source and open platforms.
Karen Clark discusses the paradigm shift in catastrophe modeling as insurers and reinsurers are transitioning from closed-box traditional vendor models to the full transparency of open platform tools
In this Q&A, Karen Clark discusses the new capabilities of the RiskInsight platform, how it Is being used by insurers and reinsurers and how it compares to RMS(one) and Oasis.
Karen Clark & Co. announces that RiskInsight® is now a fully probabilistic loss estimation tool capable of generating exceedence probability curves, probable maximum losses and average annual losses.
Top 10 P/C insurers and global reinsurers are already using RiskInsight®, a now fully probabilistic loss estimation tool. With the new capabilities, RiskInsight® is now being used for pricing both individual policies and portfolios of policies.
Here, Canadian Underwriter takes a look at the new capabilities that make RiskInsight® a fully probabilistic loss estimation tool.
Karen Clark discusses the launch of Oasis and how open platform, multi-model technology, like KCC's RiskInsight ®, are changing the status quo of catastrophe risk management in the insurance industry.
Karen Clark dissects recent reports from the Intergovernmental Panel on Climate Change to explore the impact of human-induced climate change on hurricane activity.
Looking ahead to 2014, Karen Clark offers her perspective on changes to risk modeling and risk management as the industry seeks greater transparency and more control of assumptions. Ms. Clark predicts the next wave of innovation will provide tools for managing flood risks.
The insurance industry has relied on probable maximum losses (PMLs) for the past twenty years, but they no longer provide the robust risk metrics to truly managing risk. Here, Karen Clark explains how catastrophic risk assessment based on characteristic events gives more consistent metrics for measuring and monitoring risk over time.
Following a fairly inactive Atlantic hurricane season, Business Insurance examines the impact of a calm 2013. Karen Clark discusses the long-term average insured losses from Atlantic storms, which are driven by severity rather than frequency.
On the first anniversary of Supertstorm Sandy, Karen Clark & Company reflects on Sandy's damage and assesses the Northeast's vulnerability for future storms. Using RiskInsight® to examine storm surge, Karen Clark & Company estimates the potential losses for more probable storms.
In this look back on Superstorm Sandy, Karen Clark explains what damage Sandy would have done had it taken the path of the Hurricane of 1938 or 2011’s Hurricane Irene. Ms. Clark discusses the changing attitude about catastrophes post-Sandy.
Nearly one year after Superstorm Sandy, flooding remains a challenge for the insurance industry. Karen Clark & Co. has added a new component to its RiskInsight tool to allow businesses to simulate flood events and examine the loss spikes in order to better asses and proactively manage their risks.
Here, Karen Clark explains different types of floods and contrasts the challenges of modeling storm surge and inland flooding.
Karen Clark discusses the lessons learned from the 1938 Hurricane in this Q&A with Providence Business News.
The insurance industry is changing its view on catastrophe models as the sector looks for more transparency. Karen Clark explains why cat models are not the right tool for solvency and underwriting and how open platform technology, like RiskInsight, offer a better approach.
In this Risk Management 2013 report, Karen Clark helps explain how catastrophe models became popular among insurers and reinsurers in the 1990s and why relying too much on the models is an insufficient way to manage risk today.
To mark the 75th anniversary of The Great Hurricane of 1938, WBZ-TV Boston reflects on the damage to New England during the historic storm. Karen Clark explains why a similar storm today would cause damage and devastation unlike anything else we have ever seen before.
Karen Clark & Company helps put the Hurricane of '38 into perspective, using Characteristic Event methodology to determine what a similar storm would cause in losses today. Here, Boston Business Journal compares the Characteristic Event estimates to the insured losses from more recent storms Superstorm Sandy and Hurricane Katrina.
Reflecting on the severe damage caused by the Hurricane of 1938, Karen Clark & Company's report on 1-in-100 year events like the '38 storm is profiled. The report points out the potential for a similar storm today and why the track of a hurricane, not its category, is the best indicator of damage.
Approaching the 75th anniversary of the Great New England Hurricane of 1938, Insurance Journal profiles Karen Clark & Company's report on the potential insured losses for a similar storm today and how to better manage risks using Characteristic Event methodology. The report finds that following the same track would cause more than $35 billion in insured losses, while a track further to the west over Long Island would cause $100 billion in damages.
Karen Clark & Company's report on the present day impact of the Hurricane of 1938 is summarized in this Carrier Management article. The report notes that the footprint of the '38 storm has more than $15 trillion of property value today, which would compound the losses incurred by such a storm.
In this Q&A, Karen Clark discusses the benefits of open platform technology, like KCC's RiskInsight®, and the new approach to risk management being adopted by insurers and reinsurers.
Following recent extreme flooding events, the Canadian insurance industry is re-assessing their approach to risk management. Given the highly localized nature of precipitation and the possibility for flash flooding to occur anywhere, flooding is more commonly assessed by its post-event flood footprint. As Canada considers the need for overland flooding insurance, Karen Clark helps explain why these severe precipitation events cannot be explicitly modeled and the subsequent losses estimated.
Traditional catastrophe models are not the final answer to risk management, and companies need to build proprietary views of risk to address this disparity. Flexibility, transparency and consistency are driving the new generation of risk models. Karen Clark explains why a shift to these open and customizable platforms will lead from risk modeling to true risk management.
Current catastrophe models leave insurers vulnerable to large losses in tornado zones explains Karen Clark in Insurance Day. Today's models underestimate loss potentials for individual insurance companies due to incomplete data and bias. Here, Karen discusses how the localized nature of tornadoes combined with undersampling impedes the models' ability to fully account for areas of exposure.
Expert forecasters predict there will be more and stronger hurricanes this year compared to last year. Karen Clark comments on Superstorm Sandy, and notes the latest climate change research points to a decrease in the frequency of tropical cyclones but an increase in intensity over time.
In this in-depth article examining catastrophe risk modeling, Karen Clark comments at length on the limitations of traditional vendor models and the new generation of tools to help insurers and reinsurers better understand and more effectively manage catastrophe risk.
This article examines the features and benefits of WindfieldBuilder™, a new tool for creating hurricane tracks and wind speeds that can be licensed as part of KCC's RiskInsight® platform.
An article outlining the features of WindfieldBuilder™, Karen Clark & Company's new tool that allows users to create hurricane tracks, wind speeds and windfields for analysis purposes.
An article reports on the launch of Karen Clark & Company’s WindfieldBuilder™ tool for creating hurricane footprints and estimating losses.
This article highlights the benefits of the newly launched WindfieldBuilder™, which allows users to create hurricane tracks and parameters and estimate damage to their exposures in a given region.
In her second quarterly article for Carrier Management, Karen Clark provides a primer for carrier CEOs on hurricane forecasting and on planning for and managing the risk of large hurricane losses.
An article stemming from the 2013 RIMS Annual Conference & Exhibition in Los Angeles presents Karen Clark's view that the current catastrophe modelling process is flawed, and a new approach is needed. Ms. Clark calls for a more open platform to help companies understand the risk.
An article reports on businesses adapting product and service offerings to align with needs resulting from a changing climate. Karen Clark is quoted on the need to rebuild resilient communities.
An article notes Marsh's "Energy Market Monitor" report advocates greater scrutiny of catastrophe and contingent business interruption limits by insurers. Karen Clark agrees, noting models provide very rough estimates and not final answers.
Karen Clark authors an article exploring myths and truths surrounding U.S. hurricanes and their impact. Ms. Clark describes current hurricane and catastrophe risk management in light of historic data and Characteristic Events.
Karen Clark contributes to an article focusing on the trend by the insurance industry to urge transparency in catastrophe modeling, the changing attitudes surrounding model outputs and the accuracy and extent of analysis models provide.
An article focusing on the cost of damage caused by Superstorm Sandy features Karen Clark's comments on the limited efficacy of catastrophe models applied to a single storm.
An article reports the Association of Bermuda Insurers and Reinsurers expects global insurers to cover half the losses from Hurricane Sandy. ABIR spokesperson Brad Kading cites Karen Clark & Company’s study of historical hurricanes in finding the United States can expect insured losses an average of $10 billion from a hurricane every four years.
Karen Clark authors an article in the inaugural issue of Carrier Management, a publication providing critical information for P/C insurance company executives and directors. Ms. Clark describes the state of catastrophe risk management technology and the value of open platforms for providing executives with a sophisticated, open, and robust basis for analysis.
An article explores the data available to catastrophe modelers and risk managers following Hurricane Sandy may aid modeling future perils for the Northeast United States. Karen Clark advocates insurers' active engagement in the risk management, particularly to address complex covers such as business interruption.
An article describing insurers' strategies to develop effective enterprise risk management frameworks features the benefits of RiskInsight, a platform developed by Karen Clark & Company to provide a more comprehensive, stable and transparent analysis of risk.
A series of articles reviewing insurance trends in 2012 places Superstorm Sandy and the storm's effects as the top story of the year. Research on insured wind losses, conducted by Karen Clark & Company, are included.
An article disseminates findings by Karen Clark & Company's research on U.S. property insurance, showing U.S. vulnerability to hurricanes and coastal hazards continues to rise as property values increasingly concentrate on the Atlantic and Gulf coasts.
An article from the Bermudan insurance news outlet Artemis reports on insured exposures research conducted through Karen Clark & Company's RiskInsight platform.
An article reports on Karen Clark & Company's research on U.S. property insurance, showing U.S. vulnerability to hurricanes and coastal hazards continues to rise as property values increasingly concentrate on the Atlantic and Gulf coasts.
An article assessing home damage and recovery on the Jersey Shore following Hurricane Sandy quotes Karen Clark on risk caused by both the severity of storms and the number of structures built in high-risk areas.
An article reports on Karen Clark & Company’s RiskInsight® estimation that insured wind losses due to Superstorm Sandy will be $12 billion, in part due to a large number of small claims.
An article gleans findings from Karen Clark & Company’s post-disaster survey of wind damage caused by Superstorm Sandy, which included finding wind damage well inland and a lack of risk mitigation features in construction.
An article based on Karen Clark & Company’s post-disaster survey of wind damage caused by Superstorm Sandy reports that the storm may cause over one million residential and commercial insurance claims.
An article following Superstorm Sandy assesses a major risk factor surrounding such catastrophic events is the increase of vulnerable property in addition to climate change.
An article written in the wake of Superstorm Sandy explores the insurance business and underwriting practices in risky areas. Karen Clark is quoted on the likelihood of future catastrophic events and the value of property at risk.
A story on NPR Weekend Edition Sunday reports on increasing insured losses in recent natural disasters, including Superstorm Sandy. Karen Clark is quoted on the role of catastrophe modeling and hurricane prediction.
An article reports on Karen Clark & Company’s RiskInsight® estimation that insured wind losses due to Superstorm Sandy will be $12 billion.
An article assessing the risks and costs of rebuilding along the Jersey Shore following Superstorm Sandy. Karen Clark is quoted on the likelihood of similar natural disasters happening in the future.
An article following Superstorm Sandy assesses a major risk factor surrounding such catastrophic events is the increase of vulnerable property in addition to climate change.
An in-depth piece overviews the features of RiskInsight® and the beneficial effect it could have on insurers and reinsurers, and places the platform in the greater context of the current state of catastrophe risk.
An article reports on the launch of Karen Clark & Company's open, global platform for catastrophe risk management, highlighting features that allow users to build a proprietary view of risk.
An article reports on the launch of Karen Clark & Company's open, global platform for catastrophe risk management.
The launch of RiskInsight® forms the basis of an article analyzing the state of catastrophe risk management and the benefits offered by an open platform that helps users build a proprietary view of risk.
In an article that reviews the launch of RiskInsight®, Nathan Golia reports on the impact the open, global platform has on insurers' and reinsurers' risk management and analytics.
Risk & Insurance® announces Glen Daraskevich as a winner of the 2012 Risk Innovator™ Award in the Technology category for leading the development of Characteristic Events (CEs), a tool to assist insurance companies in assessing and managing catastrophe risk.
A report on the development and forecast of Hurricane Isaac analyzes the storm using the KC Wind Damage Scale.
An article reviews the findings of the Historical Hurricanes survey and highlights the damage that could be caused should the 1926 Miami hurricane hit Florida today. Glen Daraskevitch is quoted on the application of historical data to today’s environment.
This article reviews the history of catastrophe modeling in the context of the twentieth anniversary of Hurricane Andrew, a storm that spurred widespread change in the way insurers assess catastrophe risk.
A retrospective of Hurricane Andrew on the twentieth anniversary of the storm analyzes the lasting impact on the industry and quotes Karen Clark on the development of catastrophe modeling.
An article provides an overview on the report "Historical Hurricanes That Would Cause $10 Billion or More of Insured Losses Today" and findings that show of the nearly 180 hurricanes that have hit the country since 1900, 28 would result in $10 billion or more in insured losses in 2012 given the greater number, size and cost of structures in their paths.
An article highlights findings of the report "Historical Hurricanes That Would Cause $10 Billion or More of Insured Losses Today" and quotes Karen Clark and Glen Daraskevitch on the impact of the findings.
PropertyCasualty360 provides an infographic portraying the most costly historical hurricanes, considering insured losses adjusted to 2012 costs, based off a Karen Clark & Company report titled "Historical Hurricanes That Would Cause $10 Billion or More of Insured Losses Today.
An article highlights findings and methodology of the report "Historical Hurricanes That Would Cause $10 Billion or More of Insured Losses Today" and quotes Karen Clark and Glen Daraskevitch on the impact of the findings.An article highlights findings and methodology of the report "Historical Hurricanes That Would Cause $10 Billion or More of Insured Losses Today" and quotes Karen Clark and Glen Daraskevitch on the impact of the findings.
A Q&A interview with Karen Clark delves into the lasting impact of Hurricane Andrew on catastrophe modeling and risk management, including the collection and analysis of loss data.
Karen Clark is honored among figures in the insurance industry described as having fundamentally changed the way the insurance business is conducted described as having fundamentally changed the insurance business. Karen Clark is profiled alongside industry figures such as Peter Lewis of Progressive and Rep. Barney Frank.
An article reviews the impact of catastrophe modelling on the insurance industry and the increasing scepticism of models following drastic shifts in loss estimates in recent years. Karen Clark is quoted on the values and shortcomings of models.
In a two-part series on hurricanes and their impact on South Carolina’s insurance business, Karen Clark explains the function of catastrophe models as a part of effective catastrophe risk management, and their influence on property insurance rates.
In an article that reviews recent difficult years in the insurance industry, Karen Clark comments on "black swan" events occurring in unexpected locations and provides strategies to recognize and prepare for perils in unlikely places.
An interview with Karen Clark discusses effective catastrophe risk management on the part of insurers. The combination of probabilistic and deterministic methods, such as characteristic events, is key to assess risk.
In a guest article, Karen Clark describes an approach to comprehensive risk management though a combination of risk models and characteristic events.
This article explores the benefits to insurance companies in utilizing Characteristic Events as a tool for risk management. John Tierney, Chief Actuary and Senior Vice President of Quincy Mutual Fire Insurance, said, "Catastrophe models are still critical. But this [CEs] makes it more transparent for the board. It also helped us resolve differences and focused the results from our models.
A profile of Karen Clark & Co. highlights the firm’s work as an unbiased, independent catastrophe risk expert, developing tools that help businesses tackle the issues of managing CAT risk.
In an article reporting on early forecasts for hurricane season, Karen Clark articulates that rare, catastrophic events may occur even in low frequency years and utilizing Characteristic Events methodology may reveal risk exposure across seasons and regions.
In this article, Karen Clark describes the application of Characteristic Events as a common currency and consistent yardstick that help companies make informed and transparent decisions on risk.
An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.
An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.
An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.
In a guest article, Karen Clark describes the impact of ‘black swan’ catastrophes on risk management and presents a new methodology in Characteristic Events analysis, through which insurance companies can better prepare themselves for rare, unexpected risks.
An op-ed by the director of the University of Louisiana–Monroe’s Risk Management and Insurance Studies Program critiques insurance companies' rate-setting methods and quotes Karen Clark's observations on the RMS V 11 model.
An article reporting from the New Jersey Commissioner's Insurance Symposium discusses the state's plans for public-private cooperation following a potential catastrophe and quotes participant Karen Clark on managing risk and preparing for recovery.
An article reporting from a panel at the International Underwriting Association's Catastrophe Modeling Conference relays the differing opinions on uses of models for insurers and reinsurers. Karen Clark is quoted from the panel advocating the use of models as one of several tools in evaluating risk.
Karen Clark evaluates the variations in risk modelers’ loss estimates following Hurricane Irene and provides data gleaned from RiskInsight®, a loss assessment tool developed by Karen Clark & Company.
During coverage of Hurricane Irene, Karen Clark discusses the potential effects and insurance losses associated with winds and storm surge with anchor Thomas Roberts.
An article highlighting data analysis following the Tohoku Earthquake assesses the uses and limitations of catastrophe models, quoting Karen Clark on the use of loss estimates.
In a bylined article, Karen Clark calls attention to a few of the limitations of using solely cat models for loss estimates, and presents an alternative through the use of characteristic events to represent risk with <1% probabilities.
In a bylined article, Karen Clark argues model updates are not an automatic improvement on previous editions and should be evaluated on reduced volatility and variability in loss estimates.
An article reviewing reinsurers' practices of diversifying books of business quotes Karen Clark where the theory and reality of spreading risk diverges in practice.
A profile of the late Bill Riker names him one of the Top 10 Innovators of the past decade for his work with catastrophe models.
A profile of Karen Clark and Karen Clark & Company describes the origins of catastrophe modeling, the eventual over-reliance on models by rating agencies and directions for the future such as monitoring model changes relative to characteristic set events.
In a bylined article, Karen Clark documents ratings agencies' inconsistent catastrophe risk analysis and advocates independent checks on exposure-data quality, such as consistent and transparent benchmarked scenarios.
An article exploring the use of catastrophe models following the Tohoku Earthquake quotes Karen Clark on possible over-calibration of models following the event.
Karen Clark is ranked #14 of the top thirty most influential people in the insurance and reinsurance industry of the past thirty years, ranked by the editors of Reactions in honor of the publication's 30th anniversary.
Karen Clark is featured in a podcast interview describing the current use of models in the property insurance industry, including the inexact nature of models and suggests transparent industry-wide benchmarking.
This article describes Karen Clark & Company's Executive Briefings, offered to US insurance company executives making decisions on implementing revised hurricane models.
In an article describing the current use of models in the property insurance industry, Karen Clark is quoted on the inexact nature of models and suggests transparent industry-wide benchmarking.
In an article describing RMS model revisions, Karen Clark is quoted on the effects model revisions have on the primary insurance and reinsurance markets.
In a bylined article, Karen Clark describes how developments in consumer communications technology open new distribution and growth opportunities in homeowners insurance.
This article reviews the uncertain performance of catastrophe models compared to the active 2010 hurricane season in light of the third annual Near Term Model Report by Karen Clark & Company.
An article discusses the Third Annual Near-Term Model Report's findings, places near- and long-term models in context, and discusses the possible effect of climate change on models. Karen Clark is quoted on the challenges of catastrophe models accurately predicting losses.
An article providing a comprehensive overview and summary of the Third Annual Near-Term Model Report discusses the Hurricane Frequency Paradox and reinforces the lack of connectivity between increased losses and frequency of storms. Karen Clark is quoted on the lack of connection between increased losses and frequency of storms.
An article covering a presentation by Jacqueline Friedland, actuarial practice leader at KPMG's Canadian insurance practice, reviews the findings of a forthcoming study that suggests insurers are over-relying on catastrophe modeling. Friedland cites Karen Clark during a presentation on the study's findings.
An editorial by Michael Loney responds to recent coverage of insurance modeling in the Sarasota Herald-Tribune and acknowledges the industry's over-reliance on models. He quotes Karen Clark expressing concerns over the oversold precision of model numbers.
An article, the second in a two-part series, continues exploring the Florida property insurance business. Karen Clark is quoted on catastrophe models' relation to accurate and precise loss estimates.
An article, the first in a two-part series, reviews the redevelopment of hurricane and catastrophic risk undertaken by the insurance industry after Hurricane Katrina. Karen Clark is quoted on the useful, but limited nature of catastrophe models in a complex system.
A report of Karen Clark’s presentation on Sept. 29 Reactions’ Risk & Capital Management conference in New York reviews her position that climate change affects the severity, though not frequency, of hurricanes making landfall in the US.
This opinion piece by Karen Clark argues inherent flaws in PMLs hampers effective catastrophe risk management and advocates for fixed event sets similar to Lloyd’s Realistic Disaster Scenarios.
This profile examines Karen Clark’s pivotal role as a pioneer, and continuing innovator, in catastrophe risk management.
In this contributed article, Karen Clark discusses hurricane forecasts for the 2010 season, and the limitations of models in accurately forecasting hurricane activity and insured losses.
In this BestDay Audio podcast, Karen Clark discusses how Hurricane Katrina impacted catastrophe modeling and how insurers assess risk since the storm.
In this opinion piece, Karen Clark discusses the increased use of catastrophe models by the insurance industry over the last 25 years. Ms. Clark discusses the need to find balance between utilizing the models as a valuable framework and being able to improve loss estimates utilizing other credible information.
Karen Clark & Company Senior Vice President John Tierney discusses the need for insurers to do a better job of integrating the catastrophe modeling process into their operations.
In this profile of Karen Clark, a former Business Insurance Women to Watch honoree, Ms. Clark discusses how Karen Clark & Company assists insurers in improving their exposure data.
In this article, Karen Clark comments on the inherent limits of catastrophe models and cautions against overreliance on the models.
Karen Clark and others share their perspectives on insurers’ use of catastrophe models. Ms. Clark expresses her concern that "model precision can be confused with accuracy.
In this article on new earthquake models, Karen Clark comments on the inherent limitations of catastrophe modeling software.
In this BestDay Audio podcast, Karen Clark discusses why insurers rely too heavily on catastrophe models and often put too much weight on the probable maximum loss (PML).
Karen Clark comments extensively on the appropriate use of catastrophe models and the perils of selecting a specific point estimate of loss such as the PML.
In this opinion piece, A.M. Best senior associate editor Meg Green cites Karen Clark, "the mother of catastrophe modeling," and her caution on overreliance on catastrophe models.
Karen Clark speaks with Reactions about the findings of the firm’s report on the performance of near term hurricane models and their appropriate role in gauging catastrophe risk.
An abridged version of the Karen Clark & Company report "Near Term Models: How Have They Performed?" is featured in Risk Management’s June 2009 issue, page 22.
This article details the findings of a report by Karen Clark & Company on the performance of near term hurricane models and quotes Karen Clark on the implications for the insurance industry.
In this article on the active 2008 hurricane season, Karen Clark discusses how the insured losses predicted by near term hurricane models compare to actual losses over the past three years.
This article discusses how risk managers can move beyond models to better assess their property risk. Karen Clark says that model results should be supplemented by inspection reports and data detailing specific characteristics of the insured property.
This article by Karen Clark describes the devastating impact of the 1938 hurricane on New England and projects the losses a similar storm today could incur.
In this E-Fusion Conference webinar, Senior Vice President Glen Daraskevich presents on how insurance companies can leverage mobile technology to improve underwriting decision making for the property lines of business.
As part of A.M. Best Company's 2008 E-Fusion Conference, Karen Clark & Company participates in this Q & A podcast on how insurers can better prepare for and deal with catastrophes.
In this article marking the 70th anniversary of The Great New England Hurricane of 1938, Karen Clark is quoted on the devastation a similar storm today would bring to the region.
In this televised segment that aired during WBZ-TV’s Hurricane Week, Karen Clark speaks with meteorologist Mish Michaels about the likelihood and impact of a severe storm striking Massachusetts.
Risk & Insurance® announces Karen Clark as a winner of the 2008 Risk Innovator™ Award in the Insurance category for her outstanding integrity and her ability to address risk-related problems through unique, innovative solutions.
Karen Clark is named the most influential woman in the reinsurance sector for her notable accomplishments in this male-dominated industry.
In this transcript of a Q&A podcast, Karen Clark speaks with Business Insurance about the limitations of catastrophe models, the quality and range of model input data, and the future of the risk assessment industry.
Over the past twenty years, catastrophe models have become a mainstay of the insurance industry. This article quotes Karen Clark on the appropriate role and application of these models in assessing and managing risk.
This article details the efforts that Rhode Island is taking to prepare for a major storm and quotes Karen Clark on the devastating impact a hurricane like Katrina would have on the region’s property and infrastructure.
Major hurricanes in the Northeastern U.S. are rare but can have a devastating effect on people and property, especially when hurricane warnings are disregarded. Karen Clark is quoted on the property damage a hurricane like the Great Hurricane of 1938 would incur in New England.
This article by Karen Clark discusses ways that companies can mitigate risk by applying benchmarking analyses that test the credibility of model output.
In this interview with Insurance Day, Karen Clark offers commentary on how catastrophe risk assessment can be improved by using catastrophe models in conjunction with quality exposure data, a process for checking model output, and other information on losses not covered by the model.
This article covering the Tenth Annual Insurance Forum in Dublin cites Karen Clark’s remarks during her participation in a panel discussion titled “Global Warming—Mitigation or Devastation.
Karen Clark addresses the inconsistency among results produced by existing catastrophe models and suggests that companies use benchmarking and scenario analysis to bring more transparency to these results.
This article announces that Karen Clark & Co. will provide reviews of internal catastrophe risk assessment to help companies conform to best practices.
This article details Karen Clark’s receipt of The Review Worldwide Reinsurance Awards’ Lifetime Achievement award for her outstanding contributions to the reinsurance industry.
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