CAS Exam 8 Fall 2016, Question 18

Study guide: Exam 9

Catastrophe models were built to assist the insurance industry in quantifying the risk of natural disasters.

Part a (1 point)

For any two of the four basic modules of a catastrophe model, provide an example of epistemic risk.

Part b (1 point)

For any two of the four basic modules of a catastrophe model, provide an example of aleatory risk.

Answer this question and see the worked solution

Concepts tested

• Catastrophe Modelling
• Parameter Risk
• Catastrophe Risk

More questions from this set

• CAS Exam 8 Fall 2016, Question 17
• CAS Exam 8 Fall 2016, Question 19