Nat Cat

Guide to Earthquakes part III - Earthquake modelling for the (re)insurance Industry
Following on from SCOR’s Guide to Earthquakes Part I and II also available online, this third issue…
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Guide to Earthquakes Part II - Risk assessment: Earthquake forecasts, predictions and probabilistic analysis
This second issue of Guide to Earthquakes focuses on earthquakes risk assessment. Experts discuss key historical earthquake…
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Spatial Risk Measures and Applications to Max-Stable Processes
The risk of extreme environmental events is of great importance for both the authorities and the insurance…
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Guide to Earthquakes, Part 1 - An introduction to Earthquakes: why and where they occur and how they are measured
This Technical Newsletter is an introduction to Earthquakes: why and where they occur and how they are…
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Reinsurability of Natural Catastrophes as Extreme Risks
This article considers whether natural catastrophes are universally reinsurable by reference to the characteristics of insurable risks,…
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Global reinsurance: strengthening disaster risk resilience
(Contribution of SCOR experts in an external publication) Reinsurance and insurance (collectively, “re/insurance”) and other pre-paid risk-financing…
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Solar storms and their impacts on power grids - Recommendations for (re)insurers
As shown from past occurrences over the last few decades, solar storms have the potential to impact…
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Are great earthquakes clustered?
The rate of very powerful earthquakes occurring worldwide has significantly increased over the past decade. In fact,…
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SCOR Global P&C Guide to Hurricanes: An introduction to quantifying the hazard and managing the peril
Hurricane is one of the most important perils to the insurance industry, representing 42% of all US…
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Property Cat: key strategic issues and trends ahead
Catastrophe models are the Swiss-army knives in the Cat Risk Management survival kit – performing multiple functions…
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The transfer of weather risk faced with the challenges of the future
Climate change, combined with an expanding risk universe, has led to a significant rise in the frequency…
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Lessons for Insurance: Risk Management and Engineering in the major Earthquakes of 2010-2011
This paper is a brief summary of the primary lessons for insureds and the insurance industry to…
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Seasonal hurricane forecast skill and relevance to the (re)insurance industry
Seasonal hurricane forecasts are eagerly anticipated each year by coastal residents and businesses, emergency management agencies, and…
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Managing unexpected events
This newsletter provides an overview of the chain of causes/consequences in catastrophic events and their quantification. The…
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Guide to Earthquakes part III - Earthquake modelling for the (re)insurance Industry
Following on from SCOR’s Guide to Earthquakes Part I and II also available online, this third issue…
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Panorama

• Consumers tend to purchase too little insurance or purchase it too late. Consequently, taxpayers wind up…
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This issue of Seeing Beyond Risk explores how insurance companies respond to catastrophic events, using the recent…
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When a natural disaster destroys public capital, these direct losses are exacerbated by indirect losses arising from…
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This article explores the role of insurance as substitute for direct regulation of risks posed by severe…
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The publication provides an overview of the disaster risk assessment and financing practices of a broad range…
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Uninsured natural disasters can have devastating effects on human welfare and economic growth, particularly in developing countries…
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Prior studies on the impact of catastrophes on insurance markets have either focused on one specific type…
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2013 Catastrophe Review

P&C > Nat Cat
02/2014
2013 provided a respite for the (re)insurance industry following above-average losses in 2011 and 2012, with insured…
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Insurance coverage against natural disasters remains low in many exposed areas in the world. Limited insurance supply…
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There are numerous direct and indirect international risk-sharing mechanisms. These include: self-insurance at the state level, market-based…
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Extended periods of extreme cold weather have caused severe disruptions and significant economic losses to the United…
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During the past few years the world has experienced a series of truly devastating natural disasters that…
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According to Lessons Learned from the Catastrophes of 2011: The Marsh Point of View, the scale of…
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2011 has been a record year for natural catastrophes. Economic losses were unprecedented, reaching more than a…
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NCCI changed its workers compensation ratemaking methodology to improve the treatment of large individual claims and catastrophic…
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Recent disasters and historical insurance payouts have triggered renewed interest in how firms manage their left-tail exposure.…
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This paper examines the recent experience with insurance and other risk-fi nancing instruments in developing countries in…
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In order to evaluate potential trends in global natural catastrophe losses, it is important to compensate for…
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This report discusses the need for linking risk assessment, risk perception, and risk management in order to…
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The statistics of natural disasters with respects to number of deaths, economic losses and insured losses are…
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Market

We carry out a repeated game of demand for typhoon insurance in China to study how the…
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Adverse selection and moral hazard are commonly expected to cause market failures in natural disaster insurance markets.…
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For taking over risk in a multi-party risk pool of several insurance companies, a pool sharing mechanism,…
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Catastrophes cause both changes in the supply of and demand for insurance. However, the existing literature struggles…
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Today, rising losses related to extreme weather events are significantly impacting the insurance industry and will increasingly…
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This paper examines the demand and supply of annual and multi-year insurance contracts with respect to protection…
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Financial intermediaries [FIs] in developing and emerging economies are poorly equipped to manage natural disasters. These events…
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We study whether natural disasters affect risk-taking behavior exploiting geographic variation in exposure to natural disasters. We…
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  This paper analyzes the regulation of property insurance markets in selected South-eastern coastal states subject significant…
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Natural catastrophes often have catastrophic risks on insurance companies as well as on the insured. Using a…
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This paper examines the market for catastrophe event risk i.e., financial claims that are linked to losses associated…
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This paper discusses the recent changes in the market for catastrophe risk. These risks have traditionally been…
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This study adds to the literature by examining the determinants of insurer demand for catastrophe reinsurance. Reinsurance…
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Impact

Natural Disasters and Human Mobility

P&C > Nat Cat
08/2016
This paper reviews the effect of natural disasters on human mobility or migration. Although there is an…
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Age and size distinctly affect firms’ financial management of infrequent risks. We examine a rare, severe event…
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The exposure of low-income countries to natural disasters has a significant impact on food production and food…
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Weather-related disasters are becoming increasingly frequent, due largely to a sustained rise in the numbers of floods…
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This paper identifies the challenges of severe climate risks for local credit access, positing that disaster vulnerability…
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This paper explores how banks adjust their risk-based capital ratios and asset allocations following an exogenous shock…
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As “greenwashing” is becoming more prevalent with the 21st century, many companies are claiming their “name to…
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Natural disasters exacerbate credit supply constraints in informationally opaque markets such as those for micro, small, and…
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This research demonstrates that natural disasters are systemic risks for nancial intermediaries in developing and emerging economies.…
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This paper presents a large panel study on the macroeconomic consequences of natural catastrophes and analyses the…
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This paper investigates the link between development, economic growth, and the economic losses from natural disasters in…
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The succession of costly and global catastrophe losses over the last few years has had a wide-ranging…
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Role of State

Those at risk from natural disasters are typically under-protected, possibly because they expect benefactors such as governments…
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This paper addresses the question whether and how co-benefits, through disaster resilience building, can be further promoted.…
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This paper focuses on the impact of disasters on public expenditures, and how this impact might be…
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This paper describes the challenges that consumers, insurers and insurance regulators face in dealing with insurance for…
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Extreme events are becoming more frequent and intense, inflating the economic damages and social hardship set-off by…
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This paper develops a theoretical framework for analyzing the decision to provide or buy insurance against the…
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This paper analyzes the risk of the vicious cycle created by expectations of individuals that the federal…
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The significant growth in the size and value of coastal properties has impacted insurer exposure. In 2008,…
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This paper evaluates the need for a government role in insuring natural and man-made catastrophes in the…
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Flood

This paper studies the impacts of the 2011 flood on preferences, subjective expectations, and behavioral choices among…
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Among all natural disasters, floods have historically been the primary cause of human and economic losses around…
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Given the increased attention on resilience-strengthening in international humanitarian and development work, there is a growing need…
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Financial Management of Flood Risk

P&C > Nat Cat
06/2016
Flooding is one of the most common, wide-reaching and destructive natural perils, affecting tens of millions of…
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This paper presents a model to assess the socioeconomic resilience to natural disasters of an economy, defined…
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The most recent decades have witnessed record breaking losses associated with U.S. landfalling tropical cyclones (TCs). Flood-related…
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A model has been developed in order to estimate insurance-related losses caused by coastal flooding in France.…
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Flood Insurance Claims

P&C > Nat Cat
01/2016
An analysis of more than one million flood claims under the National Flood Insurance Program reveals insights…
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High-value urban zones in coastal south Florida are considered particularly vulnerable to salt water intrusion into the…
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In contrast to recent advances in projecting sea levels, estimations about the economic impact of sea level…
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We undertake the first large-scale analysis of flood insurance claims in the United States, analyzing over 1…
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Recent environmental justice (EJ) research has emphasized the need to analyze social inequities in the distribution of…
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Recent natural catastrophes, including floods, earthquakes, tsunamis, landslides, wildfires, and droughts, have inflicted significant economic losses. The…
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In March 2014, Congress passed legislation delaying the phasing-in of premium increases on discounted flood insurance policies…
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A number of hedonic property pricing studies of flood risk indicate that properties within a designated higher…
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Among all natural disasters, floods have historically been the primary cause of human and economic losses around…
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Changing flood risks threaten the value of billions of dollars worth of coastal real estate as well…
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The provision of flood insurance is a patchwork, with countries showing varying degrees of penetration, coverage types,…
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Among all natural disasters, floods have historically been the primary cause of human and economic losses around…
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A number of hedonic property pricing studies of flood risk indicate that properties within a designated higher…
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When one thinks of property insurance, the peril that usually comes to mind is fire. This has…
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Despite trillions of dollars of assets located in coastal flood-prone areas, investments in protection have often been…
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We examine whether property price differentials reflecting flood risk increase following a large flood event, and whether…
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It is widely accepted that the low demand for natural hazard insurance can to a large extent…
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Catastrophic flooding events have become increasingly frequent in the UK and, with climate change, are likely to…
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The Federal Emergency Management Agency (FEMA) recently completed a coastal demographics study of the United States and…
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Cities located in regions prone to natural hazards such as flooding are not uniformly exposed to risks…
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Models and forecasts of damage from wind storms are a major issue for insurance companies. In this…
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One of the necessary components to perform catastrophe risk modelling is information on the buildings at risk,…
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Hurricanes, with their strong winds, heavy rainfall, and storm surges, cause much damage and loss of life…
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En assurance une variable aléatoire telle que le montant d'un sinistre peut ne pas avoir de moment…
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In this paper, we present a deterministic approach to tsunami hazard assessment for the city and harbour…
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Ten years ago, Webster et al. documented a large and significant increase in both the number as…
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Statistical methods are commonly employed to estimate spatial probabilities of landslide release at the catchment or regional…
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Earthquake sequencing studies allow us to investigate empirical relationships among spatio-temporal parameters describing the complexity of earthquake…
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This paper presents an overview of the structure of probabilistic catastrophe risk models, discusses their importance for…
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Motivated by the conjectured existence of trends in the intensity of tropical storms, this paper proposes new…
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For insurance companies, wind storms represent a main source of volatility, leading to potentially huge aggregated claim…
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We study a vehicular traffic scenario on Swiss roads in an emergency situation, calculating how sequentially roads…
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Scientific research points conclusively to the existence of climate change driven by human activity. Nevertheless, significant uncertainty…
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In this paper, we present a new approach for detecting potentially damaging European winter windstorms from a…
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Following the major natural catastrophe events of 2010 and 2011, the term ‘non-modelled risks’ entered the insurance…
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Flood frequency analyses are often based on recorded series at gauging stations. However, the length of the…
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Recently, a marked Poisson process (MPP) model for life catastrophe risk was proposed. We provide a justification…
At the heart of the analytical pipeline of a modern quantitative insurance/reinsurance company is a stochastic simulation…
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An automated, real-time, multiple sensor data source relying and globally applicable earthquake loss model and visualiser is…
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This report is structured as follows: Section 1 is an introduction. In section 2 we provide insight…
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This article presents a method for the development of vector-valued fragility functions, which are a function of…
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One of the reasons that insurers refused to cover residential flood risk in the United States in…
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Weather forecasting professionals have been developing and deploying probabilistic forecasts for well over 50 years. In face…
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There is a wide variety of flood damage models in use internationally, differing substantially in their approaches…
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Amidst the fast pace and frequent trends and changes in the market, a single business conversation can…
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This paper addresses the pattern of damage, and investigates its properties, of a theoretical hail storm which…
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The problem of earthquake risk assessment and management in insurance is a challenging one at the interface…
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A new seismic hazard model for Canada seamlessly integrates national seismic hazard models for the conterminous U.S.…
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Major natural disasters in recent years have had high human and economic costs, and triggered record high…
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A guide to managing catastrophe models as part of an Internal Model under Solvency II   Association…
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Improvements in hurricane forecasts allowing for more timely evacuations from storm-surge zones are credited with reducing lethality…
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In meteorology, engineering and computer sciences, data assimilation is routinely employed as the optimal way to combine…
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This paper describes the interdependencies of science and risk finance for catastrophe insurance. While the basic arguments…
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When analyzing catastrophic risk, traditional measures for evaluating risk, such as the probable maximum loss (PML), value…
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  Hurricane models are a significant tool used in estimating loss costs in catastropheprone areas.  While the…
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Insurers purchase catastrophe reinsurance primarily to reduce underwriting risk in any one experience period and thus enhance…
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Although, traditional reinsurance has successfully covered the economic consequences of the large natural disasters, there is still…
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insurance industry. The widespread usage of hurricane loss models dates back to 1992 when losses from Hurricane…
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When working on river floods—annual river levels maxima—, two approaches are usually considered: one inspired from Emil…
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The aim of the paper is twofold. Firstly, to analyze the historical data of the earthquakes in…
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Over the past two decades, the use of computer modelling to estimate future losses from natural catastrophes…
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Africa

(in French) In the Mediterranean region, the magnitude of floods and their frequencies imposes their consideration by…
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Drought risk reduction in Africa

P&C > Nat Cat
04/2012
Drought is the single most important challenge in the Greater Horn of Africa. Disasters induced by drought…
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Asia-Pacific

This paper studies the impacts of the 2011 mega flood on preferences, subjective expectations, and behavioral choices…
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The Pacific island countries (PICs) are some of the most exposed to frequent natural disasters and climate…
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The Taskforce is charged with exploring the feasibility of options that use the Commonwealth balance sheet to…
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Approximately 85% of Australia's population live along the coastal fringe, an area with high exposure to extreme…
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Disaster Management in ASEAN

P&C > Nat Cat
01/2014
While the Asian countries have been successful in achieving economic growth and poverty reduction, the region cannot…
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Initiatives have been undertaken within APEC to strengthen disaster risk assessment and modelling. The results have been…
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Natural disasters are on the rise worldwide. There are more and more intense natural disasters—which are defined…
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This issues paper from the study of DRM in Asia and the Pacific highlighted the rising human…
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Experiencing both recurrent small-scale events as well as devastating large-scale catastrophes, no other region in the world…
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This study provides an analysis of the current level of integration of disaster risk reduction (DRR) and…
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The frequency of intense floods and storms is increasing globally and in Asia and the Pacific amid…
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The Natural Disaster Insurance Review was announced on 4 March 2011, following the floods and other extreme…
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The series of floods and cyclone disaster events beginning in December 2010 saw 99 per cent of…
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2011 flooding in Queensland, the worst in more than 30 years, impacted around 70% of the State…
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The May 27, 2006 earthquake struck Yogyakarta and Central Java. Yogyakarta is a center for Javanese traditional…
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Japan

The Kanto seismic corridor surrounding Tokyo has hosted 4-5 M≥7 earthquakes in the past 400 years. Immediately…
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The tsunami which took place on 2011.3.11 before the coast of Japan and the subsequent nuclear incident…
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On March 11, 2011, a magnitude 9.0 earthquake struck off the Pacific coast of Tōhoku, Japan. The…
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Europe

The main aims of this paper are the evaluation of five large-scale hydrological models across Europe and…
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Flood insurance differs widely in scope and form across Europe. Against the backdrop of rising flood losses…
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Cette thèse s’intéresse aux tempêtes hivernales à fort potentiel d’impact économique en Europe et comprend deux parties.…
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Global warming may induce in Western Europe an increase in storms. Hence the forest managers will have…
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Estimating the occurrence probability of natural disasters is critical for setting construction standards and, more generally, prioritizing…
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This report brings together information about natural disasters and technological accidents that have occurred across Europe in…
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France

L'étude du coût des inondations passées est essentielle pour permettre aux parties prenantes, publiques et privées, d'améliorer…
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The analysis of flood exposure at a national scale for the French insurance market must combine the…
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For insurance companies, wind storms represent a main source of volatility, leading to potentially huge aggregated claim…
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This study finds that a major flood of the Seine River and its tributaries could affect up…
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Insurance coverage for natural disasters remains low in many exposed areas. A limited supply of insurance is…
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In this article the recently proposed approach known as 'risk-targeting' for the development of national seismic design…
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Italy

Climate extreme events are constantly increasing. What’s the effect of these potentially catastrophic events on insurance demand…
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Middle East

This paper discusses a project in the Arab region aimed at enabling national and regional institutions to…
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North America

A natural disaster can greatly reduce human capital accumulation by households, and decrease the possibility of social…
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Hurricanes act as large external shocks potentially causing considerable damage to agricultural production in the Caribbean. While…
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History has shown that hurricanes can cause catastrophic destruction and impede economic growth in the Caribbean. Nevertheless,…
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With rapidly increasing population and growing catastrophe exposure in their countries, many more government leaders (including Presidents,…
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The Canadian Institute of Actuaries (CIA) engaged KPMG to conduct a research project on water damage risk…
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USA

To protect themselves from catastrophic losses, insurance companies buy insurance, in the same way that people do.…
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Using a large dataset on homeowners and commercial property insurance coverage by state, firm, and year for…
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The last week of August 2015 marks the 10th anniversary of Hurricane Katrina, the costliest storm ever…
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Flood insurance in the United States is offered through the federal National Flood Insurance Program (NFIP). After…
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Benefiting from access to detailed data on the federally run National Flood Insurance Program for the entire…
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Little is known about how affected residents are able to cope with the fi nancial shock of…
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With respect to the pricing of insurance, there is often tension between setting premiums that reflect risk…
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Florida’s property insurance system remains broken and in need of significant changes. Past studies from the James…
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We present the first causal estimates of the effect of federal disaster relief on insurance demand using…
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Les 29 et 30 octobre 2012, quelques jours avant les élections présidentielles américaines, la côte Est des…
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Many communities in the U.S. have suffered recently from a series of disasters that have caused extensive…
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Post Sandy damage survey

P&C > Nat Cat
10/2013
A damage survey was conducted by guy Carpenter for the purpose of developing a more focused sense…
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A central concern for insurance markets is the possibility that limits to the ability to classify risk…
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2012 Storm Surge Report

P&C > Nat Cat
06/2012
The 2012 CoreLogic Storm Surge Report examines single-family residential structures (homes) exposed to potential hurricane-driven storm-surge damage…
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On the afternoon of June 1, 2011, homes, businesses and property in portions of Western and Central…
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This paper examines the history of St. Louis, Missouri in coping with flood risk over the past…
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The year 2005 brought record numbers of hurricanes and storm damages to the United States. Was this…
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A statistical analysis is performed on natural events which can produce important damages to insurers. the analysis…
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South America

South America: a regional view of disaster risk This document in Spanish addresses the regional disaster risk…
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En los últimos años, tanto el número como la intensidad de los desastres naturales han aumentado significativamente.…
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The property losses from the Feb 27th 2010 Maule earthquake are assessed as $18.1Bn paid for 38%…
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Those at risk from natural disasters are typically under-protected, possibly because they expect benefactors such as governments…
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Community resilience has become an important concern due to the increasing scale and frequency of natural and…
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Global economic losses from natural disasters continue to increase. Yet, investments in disaster risk management are not…
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Ultimately, risk reduction from the implementation of building codes is due to not only the extent of…
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This survey examines four main ways in which OECD countries are supporting the resilience of their national…
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Hurricane Andrew, which struck Florida in 1992, revealed inadequate construction practices had been utilized for decades. In…
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Le premier volet de cet article met en évidence l’ensemble des risques liés au climat, en identifiant…
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Coastal hazard mitigation policy in the US has historically focused on construction of hardened, or gray, infrastructure.…
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Flood insurance differs widely in scope and form across Europe (see for example CEA 2009, p.18 Table…
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Over 1.3 billion people live on tropical coasts, primarily in developing countries. Many depend on adjacent coastal…
Studies of behavior in the face of natural disasters and mass atrocities provide common lessons about managing…
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Floods cause more damage worldwide to human life and property than any other type of natural disaster.…
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The risks from floods have been rising globally due to increasing population, urbanization and economic development in…
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Decades of research have sought to understand how individuals and organizations prepare for both natural and man-made…
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This guide’s purpose is threefold. First, it is intended to provide practical tips on what you should…
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We examine the influence of multiple factors –type of warning message, sociodemographic characteristics, worldviews, perceived risk and…
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Having strong building codes in place in a community is frequently touted as a critical component to…
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This report presents the World Bank Group's experience in climate and disaster resilient development and contends that…
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Which cities have the highest risk of human and economic losses due to natural hazards? And how…
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This Geneva Report presents case studies on four topics: floods, earthquakes, resilient communities and liability litigation as a…
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This report asserts that the more widespread integration of science into disaster risk reduction policy making will…
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This report offers an approach and ideas for reflection, inviting readers to consider how we can ensure…
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This paper explores the question of whether there are inherent limits to our ability to learn from…
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This paper reviews the empirical literature on the economic impacts of natural disasters to inform both climate…
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This workshop report shares the best practices and experiences in the innovative and state-of-the-art hydrometeorological services and…
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Earthquake catastrophe models combine simulated earthquake hazard intensity parameters, such as ground shaking intensity and liquefaction potential,…
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This report focuses on preventing death and destruction from "natural" disasters, and concludes that governments can appreciably…
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The question is whether federal disaster policy can be rationalized or, alternatively, whether the politics of relief…
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Regular reports on the impact of catastrophes around the world, by Aon Benfield
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The Guy Carpenter Asia-Pacific Climate Impact Centre (GCACIC) was established in June 2008 as a centre in the Asia-Pacific…
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The United Nations Global Assessment Report on Disaster Risk Reduction is a resource for understanding and analysing…
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The Global Facility for Disaster Reduction and Recovery (GFDRR) is a global partnership, managed by the World…
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The 2011 Tohoku earthquake is another striking example – after the 2008 Wenchuan and 2010 Haiti earthquakes…
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Map of worldwide seismic hazard
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Real time maps of severe weather around the world - tropical cyclones, Heavy rain/snow, Thunderstorms, etc., from…
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CAT-i bulletins cover major natural catastrophes worldwide including major UK and European floods, worldwide tropical cyclones, and earthquakes.…
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The interactive weather map allows users to choose a variety of weather patterns, including wind speed, lightning,…
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