Verisk's standard demand surge

The standard demand surge framework has been used in Verisk models for more than two decades. This framework uses the industry loss for a given event (for U.S. models, aggregated with some or all the industry loss from other events which occurred in the same region and similar time frame), and looks that up in a table which provides demand surge factors based on the level of industry loss experienced.

For detailed modeling workflows, there are separate sets of factors for building coverages (coverages A/B) and time element coverage (coverage D). A flat factor of 1 is applied to contents losses (coverage C). There is also a single factor provided for aggregate modeling workflows, where individual coverage loss values are not available. Demand surge factors are then applied to ground-up losses across the entire event footprint (all impacted locations).