PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

514 ARCHITECTURE FOR RESIDENTIAL PROPERTY INSURANCE RATEMAKINGFIGURE 2loss costs in the southern latitudes are much higher given thesame distance to coast. Figure 2 maps modeled expected annualhurricane loss costs by land survey “section” defined by the PublicLand Survey System–a unit of one square mile. The data setis weighted equally in each section, as explained below.In contrast, modeled loss costs for other wind do not followthe geographical pattern of those for hurricane. In fact, they tendto be negatively correlated with the hurricane indications in similargroups of sections. Figure 3 maps the modeled other windlosscostsbysectiononthesamedataset.