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Verisk's framework
Demand surge was extended to Europe in 2023 through calibration of the demand surge model using available regional economic data, enhancing its ability to capture demand surge impacts across various perils.
Case studies: Historical evidence of demand surge in Europe
These case studies review historic storms that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.

Overview of demand surge
Provides an overview of the demand surge frameworks supported in Verisk Synergy Studio v1.0.0.
Verisk's standard demand surge framework
The standard demand surge framework uses the industry loss for a given event, and looks that up in a table which provides demand surge factors based on the level of industry loss experienced.
Verisk's framework
Demand surge was extended to Europe in 2023 through calibration of the demand surge model using available regional economic data, enhancing its ability to capture demand surge impacts across various perils.
- Developing global economic demand surge
  Understanding demand surge in Europe requires identifying significant catastrophe events and analyzing post-event price data to assess their impact on construction costs.
- Case studies: Historical evidence of demand surge in Europe
  These case studies review historic storms that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.
  - Case study: 1990 ETC season
    This case study reviews historic storms in 1990 that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.
  - Case study: 1999 ETC season
    These case studies review historic storms in 1999 that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.
  - Case study: 2007 ETC season
    These case studies review historic storms in 2007 that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.
- Application of country-specific demand surge factor
  The Touchstone public API now supports a country-specific loss inflation model that is applied for the whole year instead of per event.
- Demand surge loss changes across European models
  Summarizes the impact of demand surge on loss estimates across European models and perils, with supporting tables showing total and country-level loss changes.
- Assessing demand surge for future events in Europe
  Future events in Europe may be influenced by evolving economic conditions, labor mobility, and improvements in construction cost data.
Verisk's enhanced U.S. demand surge framework
The enhanced U.S. demand surge framework is new for Verisk Synergy Studio v1.0.0.
Model validation and applications

Case studies: Historical evidence of demand surge in Europe

These case studies review historic storms that affected Europe, their implications for excess demand for reconstruction, and the impact on costs following the events.

Calibration of the model was limited to data that provided evidence of economic demand surge prior to 2020. The review focuses on the 1990 and 1999 extratropical cyclone seasons. As a point of contrast, the 2007 season evaluation considered the effect of labor and materials demand surge and concluded that a local labor market disturbance does not appear to contribute to the uplift. For each of these scenarios, enhanced European demand surge is compared to available historical data, including Producer Price Indexes (PPI), Construction Cost Indexes (CCI), Eurostat construction labor indexes, as well as national construction indexes, which can be used as a proxy for changes in cost levels, where they are available.