Moody’s RMS has launched its new North America Severe Convective Storm HD Models at a time when recent industry events have highlighted the pressing need for more robust and reliable risk modelling.
According to the firm, in the last three years, U.S. insured losses from severe convective storms (SCS) have exceeded $50 billion annually, even surpassing hurricanes in insured impact.
Still, as SCS losses continue to rise, many existing models reportedly still struggle with fundamental limitations, including coarse hazard resolution, small event sets, simplified vulnerability curves and constrained financial modules.
“These limitations translate into uncertainty for re/insurers—uncertainty in pricing, reserving, and capital adequacy. Addressing these constraints has required more than incremental improvement; it has demanded a fundamental rethinking of how severe convective storm hazard, vulnerability, and financial outcomes are modelled,” Moody’s explained.
Launched on December 10, 2025, Moody’s RMS North America Severe Convective Storm HD Models are set to “redefine” the benchmark for SCS risk modelling.
Powered by Moody’s Intelligent Risk Platform, these models are said to deliver unmatched accuracy and actionable insight through three core innovations: hazard that reflects reality, vulnerability built for today, and financial modelling that mirrors policy reality.
Moody’s concluded, “The launch of the Moody’s RMS North America Severe Convective Storm HD Models marks a pivotal moment for the industry.
“For the first time, re/insurers will have access to a model that combines scientific rigour, computational power, and real-world calibration to deliver actionable insights at scale.”
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