To address the challenge of limited access to proprietary risk models available from the insurance industry, Florida International University (FIU) in Miami has begun developing a public loss model to assess hurricane risk in Florida. The model provides results on expected annual insured losses for specific properties or by coverage, construction type, ZIP code and county for the state of Florida. It also calculates the probable maximum loss that should be insured for any specific property that can then be compared with results and premiums proposed by insurance companies.

This model does not compete with proprietary models, but instead seeks to complement them and provide additional sources of information. Thus, it was developed with the support of nine public institutions and private sector organisations and certified by the Florida Commission on Hurricane Loss Projection Methodology. Although the model already includes the quantification of economic benefits of hurricane mitigation, FIU is working to enhance the model with storm surge and flood hazard components.