Catastrophe Modelling
Study guide: Exam 9
"==Catastrophes== are infrequent events that cause severe loss, injury or property damage to a large population of exposures. "
- Actuarial Glossary - SOA
==Catastrophe modelling== is a systematic approach to quantify the risks of extreme events and design strategies for financial protection.
| Section | Description |
|---|---|
| Catastrophe Modelling Framework | Catastrophe models are made up of several parts, such as simulation of events, hazards, vulnerabilities, and ultimately estimation of financial risk. |
| Data for Catastrophe Modelling | Data used in catastrophe models include geolocation, temperature, wind strength, terrain, architecture, building codes, contents, rebuild costs, and more. |
| Climate Change | How are catastrophe models adapted for changes in climate? |
Catastrophe Modelling for Reinsurers
In the reinsurance industry, catastrophic risk assessment is crucial for pricing, reserve setting, and capital allocation.
Sources
- A Guide to Catastrophe Modelling (The Review - Worldwide Insurance in Collaboration with RMS, 2008)