What Is NatCat? A Broker's Guide to Catastrophe Modeling

TL;DR NatCat (natural catastrophe) modeling estimates insured losses from perils like hurricanes, earthquakes, floods, and wildfires by combining hazard, vulnerability, exposure, and policy terms to produce metrics such as average annual loss (AAL) and probable maximum loss (PML), which carriers use to set premiums, limits, and capacity. Because models fill missing or vague property data with conservative defaults, brokers who submit precise geocodes, complete COPE details, current replacement costs, and populated hazard fields can secure more accurate loss estimates and better terms for their