AIR's 2001 Hurricane Model Approved by Florida Commission

Applied Insurance Research (AIR) Inc, the Boston-based catastrophe modeling firm, announced the approval of its 2001 U.S. Hurricane Model by the Florida Commission on Hurricane Loss Projection Methodology. Approval means that the AIR model has once again been certified for use in residential rate filings in Florida. AIR remains the only catastrophe modeling firm that has received approval all six years since the Commission's formation.

AIR met all of the standards set forth by the Commission, many of which are new or substantially revised this year. "We are pleased at having met the standards of the Commission, which are markedly more robust than in prior years." said David Lalonde, senior vice president of AIR and its chief actuary. "As the use of AIR's loss estimation technology is increasingly applied to the ratemaking process by our insurance company clients, satisfying the Florida Commission's standards has become an integral part of the modeling process."

AIR's recently released CLASIC/2 detailed desktop underwriting and portfolio management system includes the 2001 approved hurricane model. A significant attribute of the CLASIC/2 software system is its ability to explicitly account for the presence of loss mitigation devices, such as storm shutters and hurricane straps. In meeting the Commission's new standard on mitigation measures, the AIR model and CLASIC/2 software can now be used by insurance companies to price credits to policyholders who install mitigation devices.

Applied Insurance Research is the technological leader in providing catastrophe modeling services and computer software solutions (CATMAP/2, CLASIC/2, CLASIC/1 and CATRADER) to the insurance, reinsurance and capital markets. AIR's models simulate losses from natural catastrophes such as hurricanes, hail, tornadoes, other windstorms, flood and earthquakes in over 30 countries. Offices are located in Boston, London, Seattle, and Hyderabad. The company's Web address is www.air-worldwide.com.

Contact Wendy Lavin-Schilling, AIR Inc, 425-467-0477, wlavinschilling@air-worldwide.com.