ENGINEERING MODELS FOR CATASTROPHE RISK AND THEIR APPLICATION TO INSURANCE

Earthquake insurance traditionally has used an actuarial approach based on historical loss experience to determine insurance rate. Since earthquakes are rare events with huge consequences, the actuarial approach was found to be inadequate after the Northridge earthquake of 1994, when many insurance companies were rendered insolvent. This paper reviews the issues of earthquake insurance and describes how engineers can help make catastrophe insurance work. Computerized loss estimation methodologies based on first principles have been developed to quantify losses from destructive earthquakes with reasonable accuracy using scientific modeling techniques. A typical modeling procedure involves creating a scenario, computing hazards at the site of interest, assessing damage to assets and quantifying financial impact. Engineering modeling can be used to supplement and extend historic loss data and has the advantage of being repeatable to explore different what-if situations.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/16713664
• Corporate Authors:

  Science Press

  Beijing 100707,   China 
• Authors:
  • Dong, Wei
• Publication Date: 2002-6

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 145-151
• Serial:
  • Earthquake Engineering and Engineering Vibration
  • Volume: 1
  • Issue Number: 1
  • Publisher: Springer
  • ISSN: 1671-3664
  • EISSN: 1993-503X
  • Serial URL: http://link.springer.com/journal/11803

Subject/Index Terms

• TRT Terms: Computer models; Earthquakes; Engineering; Financial analysis; Forecasting; Hazard analysis; Insurance claims; Insurance industry; Losses; Methodology; Risk assessment
• Geographic Terms: Northridge (California)
• Subject Areas: Finance; Geotechnology; Highways; Planning and Forecasting; Safety and Human Factors; I10: Economics and Administration; I42: Soil Mechanics;

Filing Info

• Accession Number: 00938335
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 8 2003 12:00AM