KCC White Paper - New York Exposure to Natural Catastrophes
April 9, 2026
Catastrophe models are the globally accepted method for pricing extreme event risk because the models account for events that could happen in the future but haven’t happened in the recent past. This paper illustrates potential large losses in New York and examines key issues, including the use of catastrophe models in rate development, the pitfalls of relying solely on historical losses, and strategies for reducing future catastrophe impacts.