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Risk models underestimate hurricane losses: JLT Re


A study by U.K.-based JLT Reinsurance Brokers Ltd. said that risk models underestimate losses related to complex hurricanes, reports. Josh Darr, lead meteorologist at JLT Re, said that the risk models fail to accurately predict hurricane-related losses that go beyond wind damage, especially in highly populated urban areas. Mr. Darr said that such hurricanes often cause unforeseen damage and an escalation in losses.

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