Nashville, TN, June 25, 2024 (GLOBE NEWSWIRE) -- Velocity HoldCo, LLC (“Velocity”), the parent company for Velocity Risk Underwriters, LLC (“Velocity Risk”), proudly announces their joint venture on the “Velocity Risk LSU Gulf Hurricane Outlook” in partnership with Louisiana State University ("LSU"). This innovative model is the first and only Gulf Coast-centric hurricane model using daily data to predict US hurricane seasonal activity, representing a significant advancement in more precise Gulf hurricane forecasting.
Velocity Risk, an Excess and Surplus ("E&S") general agency, is a leading participant in the E&S property catastrophe market, with US hurricane risk being not only the most consequential factor for its business but for the industry at large. This joint venture underscores Velocity Risk's commitment to establishing itself as a thought leader in hurricane and weather-related catastrophe research and risk management within the E&S space.
The collaboration between Velocity Risk and LSU began in early 2023, with the project officially starting in the summer of 2023. The joint venture was driven by a team of dedicated experts, including Dr. Paul W. Miller, Assistant Professor, Department of Oceanography and Coastal Sciences, LSU; Henry Lipscomb, Analytics Manager and Sam Ye, Data Scientist of Velocity Risk; and Jonathan Russell, Velocity Risk Intern and LSU student. Their combined expertise has been instrumental in the development of this pioneering model.
Inspired by Dr. Paul Miller's original Gulf Coast model, the Velocity Risk LSU Gulf Hurricane Outlook leverages comprehensive daily data aggregated into whole season forecasts. It employs a sophisticated Random Forest machine learning algorithm for this model, allowing the team to make daily predictions, normalizing these figures to produce an accurate forecast for the upcoming season. Dr. Paul Miller commented, "Our model is specifically designed to address the unique challenges of the Gulf Coast region. By focusing on this area, we can provide more accurate and reliable forecasts, ultimately helping to protect lives and property."
The Velocity Risk-LSU model calls for 12 systems in the Gulf of Mexico for the 2024 US hurricane season. While the early results from the model are promising, the team is eager to see how it performs over the coming seasons. The yearly release of this new model will provide valuable insights for the Gulf Coast and can augment Velocity Risk’s portfolio construction and risk management strategies. Henry Lipscomb added, "This collaboration with LSU marks a significant milestone in our efforts to enhance hurricane forecasting and risk management. We are excited to be at the forefront of this innovation and look forward to the positive impact it will have on the industry."
Velocity Risk is proud of the work we do with various universities and associations through our internship programs. It allows us to access the incredible talent and expertise of our interns, like Jonathan Russell. Jonathan remarked, "Partnering with Velocity Risk has allowed me to apply academic research in a practical, and impactful way. The Velocity Risk LSU Gulf Hurricane Outlook is a testament to the power of combining academic rigor with industry expertise." LSU recently published a feature article and interview on Jonathan, profiling his academic and internship journey.
As the only daily Gulf Coast-centric hurricane model, the Velocity Risk LSU Gulf Hurricane Outlook is poised to set a new standard in the field. This initiative reflects Velocity's dedication to advancing hurricane and other catastrophe related research within in the industry and underscores the importance of tailored, region-specific forecasting.
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About Velocity
Velocity HoldCo., LLC (“Velocity”) is the holding company for Velocity Risk Underwriters, LLC, a tech-enabled 50 state E&S specialty property insurance managing general agent, Velocity Specialty Insurance Company (“VSIC”), an AM Best rated E&S insurance carrier licensed in all 50 states, and Velocity Claims LLC, a leading claims management service. The firm has over 145 employees across four U.S. locations: Nashville (headquarters), Atlanta, Birmingham, and Chicago. Velocity adopts a strategic ownership structure, and is managed by Oaktree Capital Management, L.P. as its majority shareholder, and Markel Corporation and Velocity Management Group as minority shareholders. For more information visit www.velocityrisk.com.
