Velocity Risk and LSU Launch Groundbreaking Gulf Hurricane Forecast Model

Velocity Risk Underwriters has collaborated with Louisiana State University (LSU) to develop an innovative hurricane forecast model called the “Velocity Risk LSU Gulf Hurricane Outlook.” This pioneering model, the first to use daily data for predicting US hurricane seasonal activity, promises to transform hurricane forecasting.

The model was developed by Velocity Risk Underwriters, a key player in the E&S insurance market, in partnership with LSU. The model's predictions will benefit insurance companies, policymakers, and residents along the Gulf Coast who are vulnerable to hurricane threats.

The announcement was made on June 26, 2024, marking a significant milestone in hurricane prediction and risk management.

The Velocity Risk LSU Gulf Hurricane Outlook model uses comprehensive daily data aggregated into seasonal forecasts, leveraging a sophisticated Random Forest machine learning algorithm. This cutting-edge approach enables accurate daily and seasonal hurricane predictions, providing invaluable insights for the Gulf Coast.

The model forecasts 12 systems in the Gulf of Mexico for the 2024 U.S. hurricane season. As the only daily Gulf Coast-centric hurricane model, it sets a new standard in the field, enhancing Velocity Risk’s portfolio construction and risk management strategies.

Dr. Paul Miller, Assistant Professor in the Department of Oceanography and Coastal Sciences at LSU, emphasized the model’s significance: “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.”

Henry Lipscomb, Analytics Manager at Velocity Risk, highlighted the collaboration's impact: “This partnership 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.”

Jonathan Russell, a Velocity Risk Intern and LSU student, noted, “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.”