Moody’s RMS has launched a new high-definition model of severe convective storms in North America, just as recent industry events have highlighted the urgent need for more robust and reliable risk modeling.
According to the company, insured losses from severe convective storms (SCS) in the United States have exceeded $50 billion annually over the past three years, exceeding even the insured impact of hurricanes.
Nonetheless, as social credit system losses continue to rise, many existing models reportedly still face fundamental limitations, including crude hazard resolution, small event sets, simplified vulnerability curves, and restricted financial modules.
“These constraints translate into reinsurer/insurer uncertainty regarding pricing, provisioning and capital adequacy. Addressing these constraints will require more than incremental improvements; it will require a fundamental rethinking of how severe convective storm hazards, vulnerability and financial outcomes are modeled,” Moody’s explained.
Moody’s RMS North American Severe Convective Storms HD Model was launched on December 10, 2025 and aims to “redefine” the baseline for risk modeling in the South China Sea.
Powered by the Moody’s Intelligent Risk platform, the models are said to deliver unparalleled accuracy and actionable insights through three core innovations: financial models that reflect real-world hazards, vulnerabilities built for today, and reflect policy realities.
Moody’s concluded: “The launch of Moody’s RMS North American Severe Convective Storms HD model marks a critical moment for the industry.
“For the first time, reinsurers/insurers will have access to a model that combines scientific rigor, computational power and real-world calibration to deliver actionable insights at scale.”