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BOSTON, October 06, 2026–(BUSINESS WIRE)–Karen Clark & Company (KCC) is pleased to announce the release of the US Severe Convective Storm (SCS) Model Version 5.0. This latest release incorporates several advancements that further enhance KCC’s industry-leading approach to quantifying losses from one of the most significant weather perils.
SCS losses dominate weather-related insured property losses in the US. Unlike traditional modeling approaches that rely heavily on historical storm reports, the KCC SCS Model is built on high-resolution, AI-informed 4D atmospheric modeling to accurately represent the physical processes that drive hail, tornado, and straight-line wind losses.
The world is getting more complex, the climate
The world is getting more complex, the climate is changing, and we’re learning faster than ever with AI. If models—particularly for the frequency perils—are even a few years old, they’re already out of date. KCC scientists update the SCS model on an annual basis to ensure (re)insurers stay current with all trends and quickly advancing knowledge.
The KCC SCS Model Version 5.0 includes refined modeling techniques for severe tornado outbreaks, as well as refined tornado and wind intensities along the Southeast coast. KCC tornado CEs are ideally suited to estimate the potential impacts of tornado outbreaks on large commercial and industrial facilities, including hyperscale data centers.
The updated model also includes fine-tuning of the vulnerability functions for manufactured homes, as well as updated hail vulnerability functions for site-built homes with respect to age of structure. The update incorporates refined roof age credits and debits.
All KCC models include explicit support for Roof
All KCC models include explicit support for Roof Actual Cash Value (RACV) endorsements, which are particularly relevant for SCS loss estimates. RACV endorsements can significantly reduce hail losses by valuing roof damage on a depreciated basis rather than full replacement cost. While previously, roof replacement cost was assumed to be a fixed percentage of the total building value, roof replacement value can now be entered by the user, enabling further customization of the RACV endorsement.
Because the KCC SCS modeling technology has long been verified with tens of billions of dollars of insurer claims data, loss estimates do not change abruptly with model updates but are fine-tuned by geography and sub peril. The KCC model provides daily high-resolution hail and tornado/wind footprints that insurers use to estimate claims and losses by day, event, month, and year. Through the KCC LiveEvents process, (re)insurers can independently evaluate model performance against actual experience.
