Author: Kirsten Mitchell-WallacePublish On: 2017-06-26
This book covers both the practical and theoretical aspects of catastrophe modelling for insurance industry practitioners and public policymakers.
Author: Kirsten Mitchell-Wallace
Publisher: John Wiley & Sons
This book covers both the practical and theoretical aspects of catastrophe modelling for insurance industry practitioners and public policymakers. Written by authors with both academic and industry experience it also functions as an excellent graduate-level text and overview of the field. Ours is a time of unprecedented levels of risk from both natural and anthropogenic sources. Fortunately, it is also an era of relatively inexpensive technologies for use in assessing those risks. The demand from both commercial and public interests—including (re)insurers, NGOs, global disaster management agencies, and local authorities—for sophisticated catastrophe risk assessment tools has never been greater, and contemporary catastrophe modelling satisfies that demand. Combining the latest research with detailed coverage of state-of-the-art catastrophe modelling techniques and technologies, this book delivers the knowledge needed to use, interpret, and build catastrophe models, and provides greater insight into catastrophe modelling’s enormous potential and possible limitations. The first book containing the detailed, practical knowledge needed to support practitioners as effective catastrophe risk modellers and managers Includes hazard, vulnerability and financial material to provide the only independent, comprehensive overview of the subject, accessible to students and practitioners alike Demonstrates the relevance of catastrophe models within a practical, decision-making framework and illustrates their many applications Includes contributions from many of the top names in the field, globally, from industry, academia, and government Natural Catastrophe Risk Management and Modelling: A Practitioner’s Guide is an important working resource for catastrophe modelling analysts and developers, actuaries, underwriters, and those working in compliance or regulatory functions related to catastrophe risk. It is also valuable for scientists and engineers seeking to gain greater insight into catastrophe risk management and its applications.
As with a number of previous actions around disaster risk management, Japan
has set out to be the pioneer in this new area: to employ catastrophe loss
modeling techniques to set and ... The human cost of natural disasters: A global
perspective. ... The use of catastrophe loss modelling methodologies 130 Robert
Author: Howard Kunreuther
Publisher: University of Pennsylvania Press
Category: Political Science
Whether man-made or naturally occurring, large-scale disasters can cause fatalities and injuries, devastate property and communities, savage the environment, impose significant financial burdens on individuals and firms, and test political leadership. Moreover, global challenges such as climate change and terrorism reveal the interdependent and interconnected nature of our current moment: what occurs in one nation or geographical region is likely to have effects across the globe. Our information age creates new and more integrated forms of communication that incur risks that are difficult to evaluate, let alone anticipate. All of this makes clear that innovative approaches to assessing and managing risk are urgently required. When catastrophic risk management was in its inception thirty years ago, scientists and engineers would provide estimates of the probability of specific types of accidents and their potential consequences. Economists would then propose risk management policies based on those experts' estimates with little thought as to how this data would be used by interested parties. Today, however, the disciplines of finance, geography, history, insurance, marketing, political science, sociology, and the decision sciences combine scientific knowledge on risk assessment with a better appreciation for the importance of improving individual and collective decision-making processes. The essays in this volume highlight past research, recent discoveries, and open questions written by leading thinkers in risk management and behavioral sciences. The Future of Risk Management provides scholars, businesses, civil servants, and the concerned public tools for making more informed decisions and developing long-term strategies for reducing future losses from potentially catastrophic events. Contributors: Mona Ahmadiani, Joshua D. Baker, W. J. Wouter Botzen, Cary Coglianese, Gregory Colson, Jeffrey Czajkowski, Nate Dieckmann, Robin Dillon, Baruch Fischhoff, Jeffrey A. Friedman, Robin Gregory, Robert W. Klein, Carolyn Kousky, Howard Kunreuther, Craig E. Landry, Barbara Mellers, Robert J. Meyer, Erwann Michel-Kerjan, Robert Muir-Wood, Mark Pauly, Lisa Robinson, Adam Rose, Paul J. H. Schoemaker, Paul Slovic, Phil Tetlock, Daniel Västfjäll, W. Kip Viscusi, Elke U. Weber, Richard Zeckhauser.
2.6 Summary The profession of disaster risk reduction has been gradually
developing since the mid‐twentieth century. ... J. K., and Foote, M. (2017), Natural catastrophe risk management and modelling: A practitioner's guide, London:
Author: Lee Bosher
Publisher: John Wiley & Sons
Category: Technology & Engineering
Between 2010 and 2015 the world experienced 530 disaster events that affected 140 million people, killed 78,000people and caused US$151bn in damages, figures that are testament to the significant and increasingly negative impactsthat disasters have globally. Disaster Risk Reduction for the Built Environment provides a multi-facetted introduction to how a wide range of risk reduction options can be mainstreamed into formal and informal construction decision making processes, so that Disaster Risk Reduction (DRR) can become part of the 'developmental DNA'. The contents highlight the positive roles that practitioners such as civil and structural engineers, urban planners and designers, and architects can undertake to ensure that disaster risk is addressed when (re)developing the built environment. The book does not set out prescriptive or context blind solutions to complex problems because such solutions can invariably generate new problems. Instead it raises awareness, and in doing so, inspires a broad range of people to consider DRR in their work or everyday practices. This highly-illustrated text book provides a broad range of examples, case studies and thinking points that help the reader to consider how DRR approaches might be adapted for differing contexts.
Lester , R . The World Bank and Natural Catastrophe Funding , In N . R . Britton (
ed . ) ( 1999 ) , The Changing Risk Landscape : Implications for Insurance Risk Management , Aon Re Australia Ltd . Masters , T . Asset / Liability Modelling as a
Author: Bradley T. Ewing
Publisher: Nova Science Pub Incorporated
Category: Social Science
This volume addresses many of the economic issues surrounding wind-related disasters. The research and ideas expressed in this volume are necessarily multidisciplinary in nature. Wind events such as tornadoes, hurricanes, and cyclones affect regional economies, individual households and businesses, as well as entire industries. Consequently, it is important to understand the impact that wind has on the markets in which businesses and people interact. Moreover, households, firms and government policymakers may take steps to mitigate the losses and/or adverse effects associated with wind storms either before or after the event occurs. Thus, it is inevitable that the study of economics and wind would be intertwined. Contributors include social scientists, economists, risk management and insurance specialists, and civil engineers from around the world. They include researchers from universities and private industry, many of whom are engaged in ongoing research programs funded by state and federal agencies.
This book reviews current model development and science and explains recent changes in the catastrophe modeling space, including new initiatives covering uncertainty and big data in the assessment of risk for insurance pricing and portfolio ...
Author: Gero Michel
Risk Modeling for Hazards and Disasters covers all major aspects of catastrophe risk modeling, from hazards through to financial analysis. It explores relevant new science in risk modeling, indirect losses, assessment of impact and consequences to insurance losses, and current changes in risk modeling practice, along with case studies. It also provides further insight into the shortcomings of current models and examines model risk and ideas to diversify risk assessment. Risk Modeling for Hazards and Disasters instructs readers on how to assess, price and then hedge the losses from natural and manmade catastrophes. This book reviews current model development and science and explains recent changes in the catastrophe modeling space, including new initiatives covering uncertainty and big data in the assessment of risk for insurance pricing and portfolio management. Edited by a leading expert in both hazards and risk, this book is authored by a global panel including major modeling vendors, modeling consulting firms, and well-known catastrophe modeling scientists. Risk Modeling for Hazards and Disasters provides important insight into how models are used to price and manage risk. Includes high profile case studies such as the Newcastle earthquake, Hurricane Andrew and Hurricane Katrina Provides crucial information on new ideas and platforms that will help address the new demands for risk management and catastrophe risk reporting Presents the theory and practice needed to know how models are created and what is and what is not important in the modeling process Covers relevant new science in risk modeling, indirect losses, assessment of impact and consequences to insurance losses, and current changes in risk modeling practice, along with case studies
COVER STORY Into the tempest Natural catastrophe risk models suggest that
insurers are significantly under ... the major catastrophe risk modelling firms –
Boston - based Air Worldwide , California - based Risk Management Solutions
Stress tests evelopments in stress testing and catastrophe risk modelling have
been invaluable to the reinsurance ... are " of great importance within their risk management framework , regardless of the materialisation of the simulated natural ...
"Luca Albertini and Pauline Barrieu are to be congratulated on this volume. Written in a period where structured projects in finance are having a difficult time, it is worthwhile to return to the cradle of securitisation: insurance.
Author: Pauline Barrieu
Publisher: John Wiley & Sons
Category: Business & Economics
"Luca Albertini and Pauline Barrieu are to be congratulated on this volume. Written in a period where structured projects in finance are having a difficult time, it is worthwhile to return to the cradle of securitisation: insurance. Spread out over three parts (life, non- life, and tax and regulatory issues) the 26 chapters, written mainly by practitioners, give an excellent overview of this challenging field of modern insurance. Methodology and examples nicely go hand in hand. The overall slant being towards actual analyses of concrete products. No doubt this book will become a milestone going forward for actuarial students, researchers, regulators and practitioners alike." —Paul Embrechts, Professor of Mathematics and Director of RiskLab, ETH Zurich The convergence of insurance with the capital markets has opened up an alternative channel for insurers to transfer risk, raise capital and optimize their regulatory reserves as well as offering institutions a source of relatively liquid investment with limited correlation with other exposures. One of the financial instruments allowing for the cession of insurance-related risks to the capital markets is Insurance-Linked Securities (ILS). This book provides hands-on information essential for market participants, drawing on the insights and expertise of an impressive team of international market players, representing the various aspects and perspectives of this growing sector. The book presents the state of the art in Insurance-Linked Securitization, by exploring the various roles for the different parties involved in the transactions, the motivation for the transaction sponsors, the potential inherent pitfalls, the latest developments and transaction structures and the key challenges faced by the market. The book is organized into parts, each covering a specific topic or sector of the market. After a general overview of the ILS market, the Insurance-Linked Securitization process is studied in detail. A distinction is made between non-life and life securitization, due to the specificities of each sector. The process and all the actors involved are identified and considered in a comprehensive and systematic way. The concepts are first looked at in a general way, before the analysis of relevant case studies where the ILS technology is applied. Particular focus is given to: the key stages in both non-life and life securitizations, including the general features of the transactions, the cedant's perspectives, the legal issues, the rating methodologies, the choice of an appropriate trigger and the risk modeling, the particular challenges related to longevity securitization, the investor's perspective and the question of the management of a portfolio of ILS, the general issues related to insurance-linked securitization, such as accounting and tax issues, regulatory issues and solvency capital requirements. The book is accompanied by a website www.wiley.com/go/albertini_barrieu_ILS which will feature updates and additions to the various contributions to follow market developments.
... management company – delivers sophisticated engineering and technology
based risk management and business continuity strategies to private companies ,
corporations and governments . security • natural catastrophe modelling • hazard
Risk Management Solutions (RMS), the US-based catastrophe risk modelling
company for whom Muir-Wood works, faced ... Muir-Wood has been attempting to
predict the effects of natural catastrophes since long before the insurance
This book will be of interest to anyone aspiring to understand catastrophes better, but will be of particular value to those engaged in public and corporate policy, and the financial markets.The author, Dr. Gordon Woo, was trained in ...
Author: Gordon Woo
Publisher: World Scientific
Category: Technology & Engineering
Calculating Catastrophe has been written to explain, to a general readership, the underlying philosophical ideas and scientific principles that govern catastrophic events, both natural and man-made. Knowledge of the broad range of catastrophes deepens understanding of individual modes of disaster. This book will be of interest to anyone aspiring to understand catastrophes better, but will be of particular value to those engaged in public and corporate policy, and the financial markets.The author, Dr. Gordon Woo, was trained in mathematical physics at Cambridge, MIT and Harvard, and has made his career as a calculator of catastrophes. His diverse experience includes consulting for IAEA on the seismic safety of nuclear plants and for BP on offshore oil well drilling. As a catastrophist at Risk Management Solutions, he has advanced the insurance modelling of catastrophes, including designing a model for terrorism risk.
The financial management of natural catastrophe risk is quite costly and
troublesome for the industry , mainly because of ... Technology and computer modelling of natural perils have only recently reached the point where the risks
can be ...
Publisher: Organization for Economic
Category: Business & Economics
From the increasing incidence of environmental pollution and soil contamination, to recurring natural disasters, the risks posed by the constant interaction between human activities and the environment are diverse, manifold and often catastrophic in their consequences. Therefore, the elaboration of effective risk-management plans, aimed at formulating viable response strategies, requires the contribution of all the economic actors involved: private parties, financial institutions, governments and international organizations. This report focuses on the role of insurance and reinsurance companies in the management of environmental risks - environmental pollution risk and natural catastrophe risk in particular. It discusses the issue of insurability of such risks, analyses the increasing risk of liability for environmental pollution and the underlying trends in the development of environmental liability regimes in OECD countries. It also presents an overview of the various environmental pollution insurance products and techniques developed in response to legal and factual evolutions. In addition, it describes the special features of natural catastrophe risks, the role of traditional insurance markets in the coverage of such perils, and alternative options of coverage, from governmental disaster schemes to new financial market instruments.
For example, demand management is a key element in the United Kingdom
government's Sustainable development ... was to Conserve the natural water
resource against increased demand Catastrophe modelling as a tool for
Category: Risk assessment
Released every three years since March 2003, the United Nations World Water Development Report (WWDR), a flagship UN-Water report published by UNESCO, has become the voice of the United Nations system in terms of the state, use and management of the world's freshwater resources. The report is primarily targeted at national decision-makers and water resource managers, but is also aimed at educating and informing a broader audience, from governments to the private sector and civil society. It underlines the important roles water plays in all social, economic and environmental decisions, highlighting policy implications across various sectors, from local and municipal to regional and international levels. Similarly to the first two editions, this report includes a comprehensive and up-to-date assessment of several key challenge areas, such as water for food, energy and human health, and governance challenges such as institutional reform, knowledge and capacity-building, and financing, each produced by individual UN agencies.
... management of natural catastrophe risk, with technical development
operations in London, California and India. Following the launch of the
company's UK River Flood Catastrophe model, RMS is expanding its
international flood modelling ...
Author: Organisation for Economic Co-operation and DevelopmentPublish On: 2005
Managing Economic Exposures of Natural Disasters . Exploring Alternative
Financial Risk Management Opportunities and Instruments . ... Spatial and
Temporal Modelling of Flood Management Policies in the Upper Tisza Basin ,
Draft paper , International Institute of ... Proceedings of the Second
EuroConference on Global Change and Catastrophe Risk Management :
Earthquake Risks in Europe , July ...
Author: Organisation for Economic Co-operation and Development
Category: Business & Economics
This volume is the eighth of a series devoted to major policy issues in insurance, and sets out the proceedings of a conference, held in Paris in November 2004, to discuss options for dealing with losses caused by large-scale disasters. It contains a selection of papers and reports which focus on three key issues: the insurability of catastrophic risks; the extent to which financial markets can help address the risks of both natural disasters and terrorism; and the role of governments and public-private partnerships in the management of such risks.
Obersteiner , M . et al . , Managing Climate Risk , Int . Inst . Applied Systems
Analysis , Interim Report IR - 01 - 051 , Lenburg , Austria ( 2002 ) . ... Pollner , J . , Catastrophe Risk Management : Using Alternative Risk Financing and Insurance
Pooling Mechanisms ... Walker , G . , Current Developments in Catastrophe Modelling , in : N . R . Britton and J . Oliver ( eds . ) , Financial Risks Management
for Natural Catastrophes , Brisbane , Griffith University , Australia , 17 - 35 ( 1997
From Shared Risk to Shared Value: the Business Case for Disaster Risk
Reduction United Nations. oping States . ... Natural Disaster Risk Management
and Financing Disaster Losses in Developing Countries . Band 1 ... Modelling the
Economic Effects of Disaster Risk in Nepal . ... Integrated Catastrophe Risk
Author: United Nations
Publisher: United Nations Publications
Category: Political Science
This publication is the third biennial report coordinated by the United Nations Office for Disaster Risk Reduction (UNISDR). The first and second reports focused primarily on public policy and the role of national and local governments in disaster risk reduction. This current report explores why increasing disaster risks represent a growing problem for the economic and business community at different scales. It examines how paradoxically business investments that aimed to strengthen competitiveness and productivity may have inadvertently contributed to increasing risks. This report seeks to engage businesses in a dialogue on disaster risk management that goes beyond the current emphasis on response and preparedness and instead identifies opportunities for the creation of shared value for business and society.
Applied Insurance Research (air), Eqe- cat and Risk Management Solutions (rms
) are the three biggest risk modellers. ... Risk models for natural catastrophes try
to capture two things: severity (how hard a catastrophe might hit) and ... Since
September nth, there has been a new focus on risk-modelling terrorist attacks.
Chapter 5 Arbitrage Pressure, Positive Feedback Speculation, Selective Hedging
, and Economic Stability: An Empirical Analysis and Catastrophe Modelling “It is natural to associate speculation with optimistic opinion and hedging with ...
Author: Andreas Röthig
Publisher: Springer Science & Business Media
Category: Business & Economics
“The essence of a hedging contract is a coincident purchase and sale in two markets which are expected to behave in such a way that any loss realized in one will be offset by an equivalent gain in the other. If such behavior follows a perfect hedge has been effected. ” Hardy and Lyon (1923, p. 276). 1. 1 LiteratureReviewandMotivation In the traditional hedging literature, the two markets in which hedgers trade are spot and futures markets. The trader’s position in the spot market is generally considered as given. According to Johnson (1960), hedging can be meaningfully de?ned only if the spot market is regarded as the trader’s primary market. The futures market is used solely to counterbalance an existing position in the spot market. Speculators, in contrast, do not have a commitment in the spot market. They take on risk in futures markets in order to pro?t from expected price changes. The hedger synchronizes his trading activities in spot and futures markets in order to reduce spot risk. In the lit- ature this approach to hedging is labeled risk reduction concept. Risk reduction will be achieved if spot and futures prices move more or less in parallel. If prices are p- fectly correlated, risk is abolished, since losses in one market are perfectly offset by pro?ts in the other market. However, as Hardy and Lyon (1923) point out, any div- gence from perfect correlation results in an imperfect hedge.