Overview

Moody’s High Definition™ (HD) models are based on millions of event simulations with a range of frequency and severity. These models offer a more realistic representation of "event hazard, damage, and the flow of losses through financial structures.

For each event, damage is sampled at the location coverage-level, converted into financial loss, and propagated through the various policy or treaty structures that characterize an exposure. The simulation-based nature of HD models enables viewing the event losses on a time scale and assessing the impact of weather phenomena (clustering, duration, seasonality). Sampling the damage distributions stored at the location coverage-level provides for clear and transparent loss calculations, making it easier to identify drivers of risk.

Supported HD models