CDI completes review of KCC US Wildfire Model

Karen Clark & Company (KCC), a provider of catastrophe risk modelling solutions, has announced that the California Department of Insurance (CDI) has completed its review of KCC’s US Wildfire Reference Model Version 3.0 under the newly established Pre-Application Required Information Determination Procedure (PRID).

This development paves the way for insurers to use KCC’s catastrophe models for ratemaking.

The announcement follows , approving it for use by insurers in assessing wildfire risk and property insurance ratemaking.

using the CDI’s recently approved Verisk Wildfire Model.

The PRID Model Advisor conducted a thorough review of each component of the KCC Wildfire Model over several months, including interviews with KCC scientists and experts and analysis of detailed test cases, enabling a comprehensive scientific assessment of the model.

Glen Daraskevich, Senior Vice President at KCC, said, “As the innovation leader in weather, climate, and catastrophe modeling, KCC is pleased to have been among the first modelling companies to go through the PRID process.

“The KCC wildfire model has already been accepted for rate filings in 24 other states, and our clients are looking forward to extending their use of the KCC model to the important state of California.”

Dan Ward, Senior Director of Model Development at KCC, stated, “To accurately model wildfires and capture the effects of high winds, vegetation, moisture, topography and other factors influencing wildfire spread, KCC scientists developed an innovative physical modelling approach that leverages high-resolution data and advanced scientific methodologies.

“The KCC methodology explicitly incorporates the impacts of climate change and accounts for mitigation efforts at the property and community level to encourage the reduction of wildfire risk.”

Karen Clark, CEO of KCC, added, “KCC is committed to expanding insurance availability and to supporting Commissioner Lara’s innovative Sustainable Insurance Strategy.

“The PRID determination is a key milestone that empowers insurers with the advanced KCC models they require to support mitigation efforts and expand coverage in wildfire-prone areas.”