Moody's Wildfire Risk Model Successfully Completes California Department of Insurance Review Process
Advanced catastrophe model will support a more resilient insurance market
Moody's Corporation (NYSE:MCO) announced today that the Moody's RMS U.S. Wildfire Model v2.0 has successfully completed the review process established by the California Department of Insurance (CDI). This critical milestone will enable insurers to use the forward-looking catastrophe model in their residential rate filings, supporting California's Sustainable Insurance Strategy aimed at stabilizing the state's property insurance market.
The Moody's wildfire risk model will allow insurers to leverage the model's advanced, science-driven analytics to assess and price wildfire risk. This enhanced risk assessment is designed to support a more resilient and accessible insurance market – particularly in wildfire-prone areas.
"At Moody's, we are committed to providing markets with transparent, scientifically rigorous tools to decode today's interconnected risks," said Michael Steel, Head of Insurance Solutions at Moody's. "Today's milestone marks a significant step forward in addressing the complexities of wildfire risk and promoting greater resilience for insurers, regulators, and homeowners alike."
The Moody's RMS U.S. Wildfire Model v2.0 represents a major advance in capturing the complexities of wildfire behavior, including extreme urban conflagration events. A key feature of the model is its ability to directly account for property-level and community-wide mitigation efforts. By incorporating property-specific data aligned with California regulations, the model will empower insurers to recognize and reward homeowners for risk-reduction efforts, creating tangible incentives that strengthen resilience.
Moody's RMS U.S. Wildfire Model v2.0 was reviewed under the CDI's rigorous Pre-Application Required Information Determination procedure, which includes extensive examination of its hazard, vulnerability, and actuarial components. Already in use by leading global insurers, reinsurers, and financial institutions, the model is available on the Moody's RMS Intelligence Risk Platform™ along with Risk Modeler™ and ExposureIQ™ to support a full range of wildfire risk management activities.
About Moody's Corporation
In a world shaped by increasingly interconnected risks, Moody's (NYSE:MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.
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