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Damage Calculation Methodology

The proper calculation of ground-up damage is a critical component of a catastrophic loss software program because it affects all of the ensuing insurance loss calculations. The calculation of damage involves many different components, all of which are contribute to the robustness of the ensuing damage calculation. The EQECAT USQUAKE® damage calculation methodology provides a good example of this methodology. This methodology was strictly scrutinized during the initial (1997) California Earthquake Authority (CEA) rate hearings (lasting over 4 months) and was accepted as “state of the art” in passing the legislative criteria necessary for the CEA.

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