InsuranceHeadline.com Home Headline Home Searh Insurance Directory Listings by State, City Zip Code or Detailed Keyword Search! Search News  Company Index  Add Your Listings to The Insurance Phone Book! Advertise Manage Insurance Phone Book Directory ListingsEditor Login

Insurance Headlines - Insurance Headlines.com is the premier online news source that insurance & financial professional rely on - making Insurance Headlines.com the top choice for syndicating news on the world wide web.

Headline News | Life & Health | Property & Casualty | Financial & Investments | Banks & Thrifts | Syndicate News

1
Home L&H P&C F&I Post Feeds RSS Search
 

 


 Free Insurance & Financial Headline Newsletters - Subscribe Today!

Choose Newsletters

Daily Headlines

Weekly Headlines

Product Promo's

Job Offers

Enter Your E-mail

Advertising Options

Post Press Releases

Post Insurance Articles

Online Advertising

Newsletter Advertising

Company Sponsors

Resources

Insurance Newsletters

Company News & Stocks

Syndicate News

Sponsor Links

Industry Links

Archive
Su Mo Tu We Th Fr Sa
 1  2  3  4  5
 6  7  8  9  10  11  12
 13  14  15  16  17  18  19
 20  21  22  23  24  25  26
 27  28  29  30  31

1




 

See your advertisement here

Application of Statistics Based Solely on Atlantic Hurricane Activity Can Lead to Overestimation of Risk

by NAMIC - Jan 07,2008

On Jan. 7, AIR Worldwide Corporation (AIR) announced results of the latest research by its team of scientists into the link between the formation of hurricanes in the Atlantic basin and U.S. landfall activity. The latest findings provide a context for better understanding the 2004-2007 hurricane seasons and demonstrate that using Atlantic basin activity as a proxy for landfall activity can lead to erroneous estimates of both landfall risk and potential insured losses.

“By only focusing on the 2004 and 2005 seasons, it is easy to forget that every hurricane season is unique, and actual landfall activity is a function of complex interactions between a range of environmental factors such as genesis location, sea surface temperatures and the depth of warm ocean waters, wind shear, and atmospheric steering,” said Dr. Peter Dailey, director of research in atmospheric science at AIR Worldwide. “A higher number of tropical storms in the Atlantic basin does not translate to an equivalent increase in hurricanes or landfalling hurricanes.”

AIR researchers found that a storm’s genesis location, or starting point, greatly influences its probability of making landfall along the North American coastline. The pattern of hurricane genesis locations changes from year to year, and by comparing the pattern for a particular season with long-term climatological patterns, one can better understand why in some years the proportion of storms making landfall is high, while in other years it is low.

AIR’s research can be used to analyze the landfall probabilities of the two strongest storms of the 2007 season — Category 5 hurricanes Dean and Felix — based on their genesis locations. Dean and Felix, which were the only storms this year to achieve greater than Category 1 status, took southerly tracks across the Caribbean and eventually made landfall along the coasts of Mexico and Central America.

“Contrary to popular belief, the U.S. did not ‘dodge a bullet’ with respect to hurricanes Dean and Felix,” stated Dr. Dailey. “Based on where these storms formed and how they would track under typical steering conditions, our research shows that Hurricane Dean had a low chance of making landfall as a hurricane and Felix was much more likely to strike the Mexico or Central America coastline than the U.S.”

Sea surface temperatures in the Atlantic basin have been warmer than average every year since 1995. However, the percentage of Atlantic-basin storms that make U.S. landfall as hurricanes has been below the long-term average of 14 percent in nine of those 13 seasons. In 2007, only one of 15 named storms made U.S. landfall as a hurricane, or less than 7 percent. More significantly, total wind energy in 2007 was 33 percent below average despite two Category 5 storms.

“The seasonal forecasters correctly projected that a higher than average number of tropical storms would form in the basin in 2007,” Dr. Dailey said. “But it’s much more difficult to predict not only how many of these storms will become hurricanes but more importantly how many will make landfall as hurricanes. Like many past seasons, the 2007 season showed that an elevated number of tropical storms does not always translate to more hurricanes or more landfalling hurricanes. In 2007, sea surface temperatures were not as warm as some scientists expected, and significant wind shear suppression by La Niña did not materialize as they had anticipated. Clearly there’s a danger in assuming that one or two single seasons are indicative of a paradigm shift in hurricane risk. While 2004 and 2005 were both very active seasons, they were not good predictors of activity in 2006 and 2007.”

AIR employs one of the largest teams of professional meteorologists in the world of risk management and will continue to produce transparent, quantifiable, and reproducible research on hurricane genesis and steering to provide an improved understanding of the factors that influence hurricane landfall probability. In addition to a standard view of hurricane landfall risk based on more than 100 years of historical data and more than 20 years of research and development, the AIR U.S. hurricane model includes an alternative view of landfall risk under warm sea-surface temperature conditions. Under warm ocean conditions, AIR estimates U.S. insured losses to be 15 percent higher than the long-term average. In some areas, such as the Northeast, AIR expects little difference from the long-term average. AIR intends to again submit its U.S. hurricane model for certification under the rigorous standards of the Florida Commission on Hurricane Loss Projection Methodology in 2008 for the 12th consecutive year.

-------------------------------------------------------------------------------------------

Source: AIR Worldwide Corporation

© Copyright 2007, National Association of Mutual Insurance Companies (NAMIC).

Presented by InsuranceHeadlines.com

 

Related news
Hurricane Forecast Team Predicts Well Above-average Season by NAMIC posted on Apr 10,2008
Colorado State Hurricane Forecast Team Increases Forecast Slightly, Continues to Predict Very Active Season by NAMIC posted on Aug 05,2008
2008 Hurricane Season Predicted to be Above Average by NAMIC posted on Dec 10,2007
Expert updates hurricane forecast; active season likely by USATODAY.com posted on Jun 04,2008
Insurers' hurricane experts already predicting above-average 2007season by Sun-Sentinel posted on Dec 08,2006
Global Warming May Cut Atlantic Hurricane Activity This Century by Bloomberg.com posted on May 18,2008
Cox looks at risk-based regulation by The-Royal-Gazette posted on Jun 06,2006
Bertha becomes 1st hurricane of Atlantic season by AP-News posted on Jul 08,2008
Increased Hurricane Activity Linked to Sea Surface Warming by NAMIC posted on Feb 11,2008
Atlantic storm Bertha may soon turn to hurricane by Reuters-News posted on Jul 07,2008
Did you enjoy this article? (total 0 votes)
   

Comments (0 posted) 


Headline Sponsors

Sponsor


Insurance Headlines - Insurance Headlines.com is the premier online news source that insurance & financial professional rely on - making Insurance Headlines.com the top choice for syndicating news on the world wide web.

Copyright© 2005-2007 Insurance Syndication, LLC

Powered by: InsuranceHeadlines.com

Free Link Exchange - Directory - SQL Database Hosting - Insurance PhoneBook

About Us | Privacy Policy | Terms & Conditions | Free Newsletters | Free News Feeds | Advertise | Company Sponsors | Insurance Links | Industry Links