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Karen Clark challenged traditional risk models, predicting a far greater impact from a hurricane hitting Miami than industry experts. Her models were validated by Hurricane Andrew, which caused widespread devastation and bankruptcies, revealing the industry's underestimation of climate-related risks.
- Karen Clark's catastrophe model predicted $60 billion in losses from a Miami hurricane, 10 times higher than previous estimates.
- Hurricane Andrew caused over $15 billion in damages, bankrupting nearly a dozen insurance companies.
- Andrew's impact validated Clark's models and transformed the insurance industry's approach to climate risk.
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