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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.

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.
- Factors affecting the demand surge function
  A demand surge function is derived from a variety of factors, including catastrophe type, geography, demand, business type, regional capacity, prices and indices.
- Quantifying demand surge
  We can gain insight into the inflationary effects of catastrophes by tracking material and labor price changes in affected regions in the immediate aftermath of an event.
- Availability of demand surge analysis
  The demand surge analysis feature in Verisk Synergy Studio allows you to adjust analysis results to reflect the impact of demand surge.
- Aggregation of industry losses from multiple events
  Demand surge increases when multiple large events occur close together in time and location, as rebuilding from earlier events is still underway, leading to greater pressure on regional labor and resources.
- Coverage-specific demand surge
  Demand surge varies across coverage types. Building-related coverages show increasing effects, contents remain largely unaffected, and time element losses increase at a significantly higher rate due to delays in reconstruction.
- Uncertainty in demand surge
  The development and validation of the demand surge function are limited by scarce and inconsistent historical data, requiring reliance on expert judgment, research, and continuous refinement.
- Sensitivity analysis of demand surge
  The results of stress tests quantify the impact of varying demand surge functions on average annual loss (AAL) and exceedance probability losses.
- Validation of the demand surge function
  Validation of the demand surge function is constrained by the limited availability of historical data especially for extreme events, requiring reliance on expert judgment and supplementary evidence to support the function’s applicability.
- Case study: Calculate demand surge
  Steps involved in the calculation of demand surge using detailed construction cost data and component analysis from 2004’s Hurricane Charley.
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.
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

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.