Discussion on 'Public Hurricane Loss Evaluation Models: Predicting losses of residential structures in the state of Florida' by S. Hamid et al.

摘要

The paper outlines the science and engineering approach used in developing the Florida Public Hurricane Loss Model (FPHLM). Loss models are important because a purely actuarial approach to projecting the future risk of large losses is limited by the amount of data on past damage amounts. A public model is important because it provides an independent check on private model results, which are used to set residential and commercial insurance premiums. We are happy to have this opportunity to congratulate the authors on the development of this public loss model and on their exposition of its various components. The authors have provided an important service to the public and risk management community and the work will undoubtedly stimulate additional research on various aspects of quantifying the expected losses from hurricanes at landfall.