Cyclone Classification – Background, Challenges and Implications for the Re/insurance Industry

Risk model stochastic event sets which are tuned to the climatological records of cyclone occurrence, intensity and size, may have biases systematically included, due to inconsistencies in that historical record. This report outlines some of the biases inherent in the HURDAT dataset for tropical cyclones in the North Atlantic, due to inconsistencies, errors and flaws in the methodologies of classifying cyclones.