News & Publications

Media Contact:

Philip Nunes

BackBay Communications
20 Park Plaza, Suite 801
Boston, MA 02116

What’s Happening: Devastation in Florida, flooding elsewhere

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.

Before and After Aerial Maps Show the Miles of Destruction Left by Hurricane Michael

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.

Hurricane Michael insured losses estimated at $8bn

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.

Hurricane Michael May Cost Insurers $8 Billion

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.

Michael Blasts Deadly Path Across Several Southern States

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.

Hurricane Michael insured loss to be close to $8bn: Karen Clark & Co.

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.

Karen Clark & Co. Estimates $2.5B in Insured Losses from Hurricane Florence

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.

KCC releases $2.5bn insured loss estimate for Hurricane Florence

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.

Insured losses from Florence estimated at $2.5B: Karen Clark

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.

Hurricane Florence loss only $2.5bn (ex-NFIP), says Karen Clark & Co.

According to Karen Clark, the estimated insured market loss from Hurricane Florence is expected to be close to $2.5 billion.

Hurricane Florence Threat Still ‘Catastrophic,’ Forecasters Warn

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.

Karen Clark: Global Warming May Be Increasing Storm Severity

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.

‘Open models’ and real-time cat data valuable to traders

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.

Cat models must be better: Clark

In an interview at this year’s Monte Carlo Rendez-Vous de Septembre Karen Clark explains how the cat models can be better.

$125m insured losses expected from tropical storm Gordon: KCC

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.

Tropical storm Gordon industry loss said only $125m by Karen Clark & Co.

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.

Gordon insured losses estimated at $125 million

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.

How Insurers and Reinsurers Can Proactively Manage Weather-Related Claims

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.

Lessons From the 2017 Atlantic Hurricane Season: Open Models, Real-Time Tracking Are Valuable Tools

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.

Texas hailstorm industry loss could reach $1bn: Karen Clark & Co.

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.

Texas hailstorm insured damage estimated at $1 billion

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.

Wide ranges and divergent hurricane loss estimates 2017’s biggest surprise: Karen Clark

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.

2017 Hurricane Season Review and Analysis

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.

Alberto industry loss likely minimal, KCC estimates $50m

Karen Clark & Company estimates minimal impact from Subtropical Storm Alberto in the United States, with insured losses close to $50 million.

Insured losses from Alberto could reach $50m

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.

$2.5bn losses expected from U.S. Ring of Fire weather system, KCC says

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.

"Ring of Fire" severe convective storms to drive $2.5bn insured loss: KCC

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.

May storms cause $2.5 billion in insured damages: Report

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."

Model behaviour: learning the lessons from last year’s hurricanes

‘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.

Expected annual severe convective storm losses higher than hurricanes & earthquakes combined: KCC

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.

Annual convective storm expected losses near $25bn: Karen Clark & Co

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.

Building Smarter Cat Models: Why They Need an Upgrade

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.


Modelling the 2017 losses: recurring estimates vary widely

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.

How insurers and reinsurers track live hurricanes in real-time

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.

Karen Clark & Company introduces Severe Convective Storm model

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."

Karen Clark & Company unveils convective storm model

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 releases convective storm model update

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.

Annual convective storm losses near $20bn, new KCC risk model shows

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.

What Harvey and Irma Say About the Accuracy of Catastrophe Models

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.

Karen Clark & Co. puts hurricane Nate insured loss at almost $500 million

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.

Hurricane Nate industry loss estimated at $500m: Karen Clark & Co.

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.

Nate losses estimated at $500 million

In an article examining Hurricane Nate, Karen Clark & Company is reference for estimating the insured losses to reach $500 million.

Hurricane Maria a $30bn re/insurance loss: Karen Clark & Company

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.

Hurricane Maria to cost re/insurers $30bn: Karen Clark

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.

KCC puts Hurricane Maria losses at $30bn

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.

Hurricane Maria to result in $30 billion insured loss: KCC

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.

KCC estimates Hurricane Maria losses at $30bn

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.

Maria’s Devastation Across the Caribbean: USVI Officials Quash Rumors of Fuel Shortage

In an article evaluating the Caribbean islands affected by Hurricane Maria, Karen Clark explains that Guadeloupe has estimated insured losses of $119 million.

Comment: Maria modelling disparity shows need for multiple risk perspectives

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.

Karen Clark & Company estimates insured losses from Hurricane Maria at US $30 billion

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.

Puerto Rico damage to push Maria losses to almost $30 billion

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.

Andrew: Now and Then

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.

Harvey and Irma affirm value of new cat models

The traditional catastrophe model output does not provide the timely and granular data senior executives want when storms like Irma and Harvey are unfolding...

Why Irma’s Impact on the Economy Will Be Worse than Harvey’s

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.

Florida Keys not alone after Hurricane Irma ruins tropical haven

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.

Reinsurers shares wobble after counting the cost of Irma and Harvey

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.

Hurricane Irma insured losses at $25 billion: KCC

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.

Florida is Short on Insurance Adjusters and That Could Stall Recovery Efforts

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.

Hurricane Irma insured industry loss $25bn: Karen Clark & Co.

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.

Irma damage expected to reach $18 billion in the U.S.

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.

KCC estimates insured Irma losses at $25bn

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.

Irma insured losses estimated at $25 billion

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.

Irma insured loss forecast at $25bn: KCC

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.

How insurers used CAT models in Irma prep

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.

Irma Damage Could Cost the U.S. Economy and Insurers Dearly

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.

The Tampa Bay Area, A Vulnerable and Ill-Prepared in the Event of a Hurricane

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.

Hurricane Irma has taken a turn toward the most catastrophically vulnerable city in America

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.

Irma brings fears of surge, sewers and toxins to Tampa area

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.

Tampa Has Never Seen Anything Like Hurricane Irma

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.

Worst case scenario? Massive damage feared in Tampa as it awaits Irma’s wrath

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.

Irma’s track shifts west, may target vulnerable Tampa area

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.

Building Boom Puts Millions in Irma’s Path

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.

If path holds, Irma could swamp Southwest Florida, Tampa coast with surge

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.

Hurricane Irma’s Surge Poses Major Risk to Florida

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.

Security First Insurance lays groundwork to stay connected during Irma

In an article evaluating Security First, Karen Clark & Company’s RiskInsight modeling tool is explained as a way to estimate claims.

Progressive: Here We Go Again

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.

KCC’s new RiskInsight-lite facilitates tracking of hurricane losses in real-time

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.

Live cat hurricane risk model launched by Karen Clark & Co.

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 & Co. modeling platform allows real-time hurricane loss tracking

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.

Saturated: Claims Flood in After Harvey Exits

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.

Insurers expected to withstand Harvey claims

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.

Uncertainty over Harvey loss estimates

In an article evaluating the destruction caused by Hurricane Harvey, Karen Clark estimates wind-driven insured losses in the low billions.

Karen Clark puts Harvey insured loss at $15bn

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.

Harvey a $15.4bn insured loss (ex NFIP), over $12bn inland flooding: KCC

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.

KCC pitches Harvey insured losses at $15bn

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.

Harvey insured losses to hit $15bn: Karen Clark

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.

Hurricane Harvey: Insurance sector set to slapped with bill in excess of $15bn, catastrophe boffins calculate

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.

Insured losses from Harvey could top $15 billion

In an article evaluating the estimated losses of Hurricane Harvey, Karen Clark explains that the bulk of insured loss will come from inland flooding.

Harvey insured loss $15.4bn (ex NFIP): Karen Clark & Co.

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.

Modeling Firm: Hurricane Harvey Private Insured Losses Could Top $15 Billion

In an article analyzing the devastation of Hurricane Harvey, Karen Clark explains how insured losses could reach upwards of $15 Billion.

25 years after Andrew, Fla. insurance industry stronger but still vulnerable

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.

25 Years Later: How Florida's Insurance Industry Has Changed Since Hurricane Andrew

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.

Cat Models Impact After Hurricane Andrew

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.

25 years since Andrew - Karen Clark interview

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.

Blog: If Hurricane Andrew II hit Miami today

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.

Lasting effects of Hurricane Andrew

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.

KCC's Clark: 'We Are in a Similar Position Today as We Were Before Andrew'

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.

Legislative Levee: Can private insurance help the National Flood Insurance Program meet its congressional expectations?

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.

The Trading Floor Interview: Karen Clark

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.

Open-loss modelling "significant as first cat models" says pioneer

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.

Innovation in Risk Modeling: How We Do It

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.

How New Rating Agency Formulas Could Impact Reinsurance and the ILS Market

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.


Karen Clark: Special report – 2017 risks

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.

The Latest Launches From QBE North America, Aon, Arch Insurance and More

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.

KCC updates RiskInsight loss modelling tool

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.

Big Data Analytics: Mining Your Catastrophe Claims Data for Competitive Advantage

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.

Opening up the model

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: Remodelling the models

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.

Are insurers prepared for Hurricane Andrew II?

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.

Modeling firms take first look at cyber risks

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.

Catastrophe modeler updates loss modeling platform

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.

Around the P&C insurance industry: May 11, 2016

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.

The Latest Launches From Karen Clark, Allianz and Hiscox

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 & Company Releases V4.3 of RiskInsight Open Loss Modeling Platform

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.

Why Convective Storm Models Are Unreliable

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.

15 women in insurance you need to know

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: 'I was adamant I wouldn't make another model'

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.

Karen Clark & Co. Announces 2 Additions to Senior Management Team

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 adds to management team

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.

Earthquakes for CEOs: Understanding the Most Recent USGS Report

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 Releases New U.S. Earthquake Reference Model within RiskInsight

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 Releases Updated U.S. Earthquake Model

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.

Large California Earthquake More Likely

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 Adds US Earthquake Reference Model to Modeling Platform

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 & Co. Releases New U.S. Earthquake Reference Model

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 highlights role for ILS on peak exposures: Karen Clark

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.

Industry should focus on hurricanes

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.

Report: Miami region fourth-most vulnerable to costly 100-year hurricane storm surge

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.

How Insurers Are Building Bespoke Catastrophe Models

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.

Modeling platform update enhances global mapping, interactivity

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 updates RiskInsight platform

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.

Karen Clark & Company's RiskInsight Open Loss Modeling Platform Introduces Advanced Tools

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 & Co. updates RiskInsight open loss modeling platform

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.

RiskInsight update allows users to build own models

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.

Report: Florida Cities Most Vulnerable to Storm Surge

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.

Modelling in focus: US storm surge

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.

Eye of the Storm

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.

A perfect storm

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.

No One Is Ready for the Next Katrina

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.

Tampa/St. Petersburg most vulnerable to storm surge flooding damage, with loss potential of US$175 billion: Karen Clark

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.

Tampa Bay is the most vulnerable metro area to hurricane damages, study shows

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.

Katrina's Impact on Catastrophe Modelling and Management

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.

Hurricane Katrina's Legacy

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.

US Cities Most at Risk from Storm Surges

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.

Calm before the Storm?

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.

No immediate threat to ILS investments from climate change, says report

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.

Climate Change Not Yet Boosting Atlantic Hurricane Activity: Karen Clark & Co.

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.

Hurricane losses 'could double by end of century'

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.

Climate change 'not an issue' for hurricane insurance investors

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.

Moderate Hurricane Season Predicted, But Storm Risks Remain

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.

Can Karen Clark Move Forward the Cat Modeling Industry She Helped Create?

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.

U.S. Coastal Regions Hold Bulk of Insured Property Values

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.

How to Manage Risk of Valuable Properties Concentrated in Coastal Areas

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.

PML’s leave re/insurers over-exposed to losses, ILS can help: Karen Clark

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.

Location, location, location: Higher property values increase potential catastrophic losses

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.

Miami hurricane could yield unprecedented $250 billion in losses: report

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.

100 year hurricane could cause more than $250B losses in Florida

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.

Higher property values in nat cat-prone areas in U.S. hike opportunity for mega-cat losses: paper

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.

U.S. Insured Property Values Reach New Heights and Cluster in Coastal Regions

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.

100 Year Event Losses vs. Insurer Estimates

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.

Highest valued U.S. properties face bigger natural risks

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.

Water Surge

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.

Climate Change Modeling on Cusp of Paradigm Shift

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.

What Boards Would Like to Know About Catastrophe Losses

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 Introduces New U.S. Storm Surge Model

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.

Karen Clark releases US storm surge model

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.

Karen Clark & Co. CEO: New Storm Surge Model Could Help Private Flood Market

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 & Co. launches U.S. storm surge risk model

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.

Karen Clark Rolls Out New U.S. High - Res Storm Surge Model

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.

Clark Expands Into Storm Surge Modelling With a Focus On Florida

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.


Consultant puts losses from Napa quake at $1 billion

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.

Hurricane Season Ends in Line with Quiet Forecast

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.

Why Open Platforms Are the Logical Next Step for Catastrophe Risk Models

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.

Q&A: Karen Clark, Karen Clark & Co.

Karen Clark discusses innovation, demand for open model platforms and the changes to access the insurance industry will see develop as we enter 2015.

Flood Legislation Limiting Risk Mitigation: Karen Clark

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.

Investors comfortable with long - standing earthquake catastrophe models

Insurance-linked securities investors are now utilizing open platforms in addition to traditional models to assess risk, according to Karen Clark.

Open Platforms — A New Approach to Loss Estimation

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.

A.M. Best Interviews Karen Clark on "Characteristic Events"

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.

What Rating Agencies Really Want to Know About Your Catastrophe 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.

Report: $100M in Losses from Southern California Quake

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.

Risk Remains After California's La Habra Earthquake, Report Concludes

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 fresh approach to modelling large loss potential

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.

Karen Clark & Co.: Industry Losses From 100-Year Hurricane in Texas Could Exceed $100 Billion

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.

Category 5 Texas Hurricane: Where Landfall Would Be Worst

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.

Karen Clark & Co. Warns of Potential U.S. Hurricane Losses Exceeding $100 Billion

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.

Catastrophe Modeler Addresses Impact of 100-year Hurricane

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.

Don't Get Caught out by Exposure Concentrations This Hurricane Season

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.

Seismic Map Updates Will Have Varied Impacts on Property Insurance Market

Karen Clark discusses how updates to the USGS Seismic Hazard Maps will impact catastrophe models used to assess earthquake risk.

Rival Vendors Unveil Open Cat Modelling Platforms

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.

Next Generation Cat Modeling: Multimodel, Open Source or Open Platform—What’s the Difference?

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.

Updated Catastrophe Models Give Users More Control of Systems

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

Karen Clark's RiskInsight Now Fully Probabilistic

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.

Who's Using What: The Latest Insurance Software Implementations

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.

Karen Clark & Co.'s RiskInsight Now a Fully Probabilistic Loss Modeling Platform

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.

KCC's Modelling Platform Now Generates Exceedence Probability Curves, Average Annual Losses

Here, Canadian Underwriter takes a look at the new capabilities that make RiskInsight® a fully probabilistic loss estimation tool.

Interview with Karen Clark

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.

The Current Scientific Consensus on Climate Change and Hurricanes—It May Surprise You

Karen Clark dissects recent reports from the Intergovernmental Panel on Climate Change to explore the impact of human-induced climate change on hurricane activity.


Terrorism Insurance and Increased Competition on Risk Management Radar in 2014

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.

Simulating The Hazard Rather Than The Loss

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.

Quiet Atlantic Hurricane Season Puts Downward Pressure on Reinsurance Rates

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.

Future North-East Storms Could Exceed Sandy

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.

One Year After Superstorm Sandy, Has Anything Changed?

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.

Flood Simulator Gives Losses by Property

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.

Flooding and Flood Models Explained: Karen Clark Reviews the Basics

Here, Karen Clark explains different types of floods and contrasts the challenges of modeling storm surge and inland flooding.

Lessons from Hurricane of ’38 Can Limit Losses Today

Karen Clark discusses the lessons learned from the 1938 Hurricane in this Q&A with Providence Business News.

The New Approach to Cat Modeling

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.

Catastrophe Models Give Insurers Insight into Disasters

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.

Looking Back At The Great Hurricane Of 1938

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.

Storm of a Lifetime Would Crush Southern New England Today

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.

New England Storm: 1938 Storm Estimated as One-in-100 Year Event

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.

Karen Clark & Co. Report Looks Back at New England Hurricane of 1938

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.

Present Day Impact of Great New England Hurricane: Karen Clark & Co.

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.

Q&A: Karen Clark, Karen Clark & Co.

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.

Overland Overhaul

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.

Risk Modeling to Risk Management

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.

Why catastrophe models do not handle tornadoes effectively

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.

Forecasters agree on active hurricane season ahead

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.

Catastrophe risk models: The next generation

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.

Karen Clark & Company unveils hurricane tool

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.

Karen Clark & Co. launches WindfieldBuilder™, enhances visibility of hurricane threats

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.

KCC releases hurricane and wind tracking tool

An article reports on the launch of Karen Clark & Company’s WindfieldBuilder™ tool for creating hurricane footprints and estimating losses.

Karen Clark & Co. Tool Allows Users to Create Hurricane Tracks, Estimate 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.

Karen Clark Explains The Basic Facts About Hurricanes

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.

Need to shift focus from cat model to cat risk

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.

Investors Seek Ways to Profit From Global Warming

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.

The Future of Cat Modelling

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.

US Hurricanes: Fact Versus Fiction

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.

Opening the Black Box

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.

Sandy Bill Still Rising

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.

Global insurers to pick up bill for half of Sandy losses

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.

The Latest in Catastrophe Risk Management

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.

Cat Modeling Firms: Sandy's Data Cache an Information Treasure Trove

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.


What Fuels ERM? More Data

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.

Rebuilding Year: Top 10 Stories of 2012 1. Superstorm Sandy Spoils a (Mostly) Good Year for P&C Carriers

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.

Report Shows Increasing Concentrations of Insured Property Values in U.S.

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.

18% of U.S. insured property exposure is exposed to Atlantic and Gulf hurricanes

An article from the Bermudan insurance news outlet Artemis reports on insured exposures research conducted through Karen Clark & Company's RiskInsight platform.

$15trn of insured exposure sits on Gulf and Atlantic coasts

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.

Hurricane Headaches: Delco residents with Homes at Jersey Shore Struggle to Repair Damage Done by Sandy

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.

Low-Level Wind Damage Claims Adds Up to $12b Price Tag for Sandy

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.

Karen Clark & Co, Surveys Sandy’s Damage

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.

Sandy Will Cause Over a Million Claims – Karen Clark & Co

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.

Lessons From Hurricane Sandy

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.

With More Storms on the Horizon, Insurers Could Drop Coastal Homes Altogether

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.

Insurance Companies Rethink Business After Sandy

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.

Karen Clark & Co.: Sandy's Wind Damage Alone to Cause $12B in Insured Losses

An article reports on Karen Clark & Company’s RiskInsight® estimation that insured wind losses due to Superstorm Sandy will be $12 billion.

On the Jersey Shore, Emotion Outweighs Cost of Rebuilding

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.

Risk Experts Say It’s Not Climate Change, It’s Coastal Communities, Stupid

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.

Clark Looks to Revolutionize Risk Management Again with RiskInsight

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.

Karen Clark & Co. Launches RiskInsight®, Useful Tool for Cat Bond Portfolio Management

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.

Karen Clark & Co. Introduces RiskInsight® Platform for Cat Risk Management

An article reports on the launch of Karen Clark & Company's open, global platform for catastrophe risk management.

New Frameworks, Data Sources Redefining Catastrophe Models

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.

Karen Clark & Co. Releases Risk Management Platform

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.

Fleshing out Models

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.

Large Isaac Headed Toward New Orleans, but Storm is No Katrina

A report on the development and forecast of Hurricane Isaac analyzes the storm using the KC Wind Damage Scale.

At $125 Billion, Costliest U.S. Hurricane Was Unnamed Miami Storm from 1926

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.

Catastrophe Modelers Credit Hurricane Andrew with Jump-Starting Business

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.

Florida Insurance Commissioner During Andrew Remembers the Storm—and Assesses its Game-Changing Impact

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.

Study: Hurricane Andrew Three Times as Costly in 2012

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.

Karen Clark & Co. Estimates Historic Hurricanes’ Losses in Today’s Dollars

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.

Top 10 Costliest Historical Hurricanes

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.

Historical Hurricane Cost Upwards of $10bn in 2012, Claim Cat Experts

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.

Q&A: Andrew Made Big Waves in Catastrophe Modeling

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.

Living Legends of Insurance: #6 Karen Clark: Model Citizen

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.

Insurers Now Take Grain of Salt With Catastrophe Models

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.

Storm of Money: Hurricanes, Insurance, and the Secret Black Boxes That Make Our Rates So High

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.

A Re-Education on Catastrophe Risk Models

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.

Q&A: Karen Clark Discusses Cat Management as Hurricane Season Arrives

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.

Risk Modelling Versus Risk Management

In a guest article, Karen Clark describes an approach to comprehensive risk management though a combination of risk models and characteristic events.

Using Characteristic Events to Complement CAT Models

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.

Catastrophe Clarity: Companies to Watch

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.

Blowing Up a Storm

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.

A Role for Characteristic Event Methodology in Catastrophe Risk Management

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.

New Risk Management Tool Could Fill in the Gaps Left by Conventional Catastrophe Models

An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.

New Tool Helps P/C Insurers Manage Volatility of Catastrophe Models

An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.

Karen Clark & Company Introduces Characteristic Events

An article describes the methodology and benefits of utilizing Characteristic Events to effectively manage risk.

Catastrophe Management: Moving Beyond the Models

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.


Reinsurers Root of Insurance Rate Hikes

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.

NJ's Catastrophe Plan Needs Long-Term Approach, Insurer Input

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.

Cat Models 'Not Fit For Purpose

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.

Varying Assumptions on Limited Data Causing Wide Insured-Loss Estimate Variances

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.

Taking the Hurricane Seriously

During coverage of Hurricane Irene, Karen Clark discusses the potential effects and insurance losses associated with winds and storm surge with anchor Thomas Roberts.

Counting the Costs of Catastrophes

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.

Cracks in Cat Models

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.

Opinion: Updated Doesn’t Mean Better Catastrophe Model

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.

Diversification or Diworsification?

An article reviewing reinsurers' practices of diversifying books of business quotes Karen Clark where the theory and reality of spreading risk diverges in practice.

Bill Riker: Renaissance Man

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.

Looking Beyond the Catastrophe Model

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.

How Can Rating Agencies Better Gauge Carrier Cat-Risk Exposure?

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.

Japan Earthquake Heightens Concerns Over 'Model Miss

An article exploring the use of catastrophe models following the Tohoku Earthquake quotes Karen Clark on possible over-calibration of models following the event.

#14. Karen Clark: Most Influential People of Past 30 Years

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.

Catastrophe Models Don’t Tell Entire Story, Says Pioneer Clark

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.

Karen Clark & Company Holds Briefings to Address Concerns About New U.S. Hurricane Model

This article describes Karen Clark & Company's Executive Briefings, offered to US insurance company executives making decisions on implementing revised hurricane models.

Cat Modeling: Ingrained in the Industry, Embroiled in Controversy

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.

Model Revisions and Reinsurance Pricing

In an article describing RMS model revisions, Karen Clark is quoted on the effects model revisions have on the primary insurance and reinsurance markets.

Insurers Urged To Harness Web To Grow Profitable HO Biz

In a bylined article, Karen Clark describes how developments in consumer communications technology open new distribution and growth opportunities in homeowners insurance.

Storm Warning

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.

Risk: Computer Projections of Hurricane Losses Off by $45B-$53B—Critic

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.

Near-Term Models Misjudge Hurricane Losses By Billions

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.


Insurers placing too much emphasis on cat model PML numbers, not enough on uncertainty models

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.

COMMENT: Risk Modelers Take Flak

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.

Insurers’ Computer Models Deeply Flawed

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.

Florida Insurers Rely on Dubious Storm Model

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.

Climate Change effect not clear cut: Clark

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.

Measuring Up the Metrics

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.

The Acts of God Algorithm

This profile examines Karen Clark’s pivotal role as a pioneer, and continuing innovator, in catastrophe risk management.

Batten down the hatches?

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.

Karen Clark & Co.'s Karen Clark, Davidson & Co.'s Drew Powell on Katrina's Impact

In this BestDay Audio podcast, Karen Clark discusses how Hurricane Katrina impacted catastrophe modeling and how insurers assess risk since the storm.

Opinion: Prisoners of Models of Our Own Design

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.


Cat Modeler’s Review Highlights Necessity To Integrate Models Throughout Operations

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.

Where Are They Now?

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.

Understanding uncertainty

In this article, Karen Clark comments on the inherent limits of catastrophe models and cautions against overreliance on the models.

Cat model pioneer cautions insurers on over reliance of 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.

Shaking up the Models

In this article on new earthquake models, Karen Clark comments on the inherent limitations of catastrophe modeling software.

Cat Modeler Karen Clark on Over-Reliance by Insurers

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).

Cat Modeling Pioneer: Don’t Rely Too Much on Cat Models

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.

Perspectives: Why Model Behavior Doesn’t Always Make Sense

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.

Have near-term cat risk models failed?

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.

A Review of the Performance of Near Term Hurricane Models

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.


Efficacy of Catastrophe Models Assessed

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.

Overshadowed but Active Hurricane Season Was Anticipated by the 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.

Get a Hold of Your Property, People

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.

Why The Next Big Northeast Hurricane Will Surprise

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.

Technology-based Underwriting

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.

The Hurricane of ’38 Remembered

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.

Could a Hurricane Katrina or Ike Happen in MA?

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.

Birth Mother of CAT Modeling Spins On

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.

GR Top 40: The Most Influential Women

Karen Clark is named the most influential woman in the reinsurance sector for her notable accomplishments in this male-dominated industry.

Modeling rests on data

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.

Shore Bets

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.

Hurricane Preparedness is key to surviving a Katrina

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.

Complacency cited as main hurricane risk in Northeast

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.

Thinking outside the black box

This article by Karen Clark discusses ways that companies can mitigate risk by applying benchmarking analyses that test the credibility of model output.

Nobel Peace Prize Winners Honor Catastrophe Model Pioneer Clark

From the archive: an interview with Karen Clark

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.

European Insurance Forum Examines Industry Changes

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.

Wild Variations

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.


Catastrophe Modeling Pioneer Clark Advises on Insurers’ Best Practices

This article announces that Karen Clark & Co. will provide reviews of internal catastrophe risk assessment to help companies conform to best practices.

Cat Modeling Pioneer Clark Honored by Reinsurance Industry

This article details Karen Clark’s receipt of The Review Worldwide Reinsurance Awards’ Lifetime Achievement award for her outstanding contributions to the reinsurance industry.

Thank you for your interest in the "" . To this , please enter your contact information below. We will not share your information with anyone.




* Required information