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National Hurricane Center (NHC) Saffir-Simpson Category

Trading Term

The National Hurricane Center (NHC) uses the Saffir-Simpson Hurricane Wind Scale to categorize hurricanes in the Atlantic and Eastern Pacific basins. This scale ranks storms from Category 1 to Category 5 based on their sustained wind speeds, with higher categories corresponding to greater potential for damage. The system is widely used by meteorologists, emergency managers, and the public to assess risk and prepare for storm impacts.

A Category 1 hurricane has winds between 74 and 95 mph, while a Category 5 storm features sustained winds exceeding 157 mph. The scale does not account for rainfall, storm surge, or flooding, which can still be devastating even in lower-category storms. Therefore, while the Saffir-Simpson scale offers a straightforward measure of wind hazard, it is only one aspect of a hurricane’s full threat profile.

The NHC provides extensive guidance on hurricane tracking, impact modeling, and preparedness. In financial markets, the Saffir-Simpson scale affects catastrophe risk modeling, property insurance premiums, and reinsurance pricing. Parametric insurance products and catastrophe bonds may also use specific category triggers for payouts, making the scale important not just for safety but also for financial resilience.

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