Sensitivity analysis of a hurricane drought on insurance catastrophe modelling

The drivers of the so-called hurricane drought from the mid-late 1900’s has recently been called into question. Whether the suppression of hurricane activity was an aerosol-driven event or part of natural variability has implications on how the insurance industry models future hurricane frequencies. This presentation shows results from a boostrapping sensitivity test to determine the viability of a catastrophe model assuming a hurricane drought could and could not happen in the future. The results are an example of the type of analytics use in the insurance industry based on academic research within the meteorological field.