GRA · Reinsurance and Catastrophe
Spatial financeWhere capital meets hazard, exposure and transition
STEM foundation of Reinsurance and Catastrophe
The science, technology, engineering and mathematics Reinsurance and Catastrophe rests on. Each method has a canonical page in the STEM Commons, hosted by the Global Centre for Risk and Innovation (GCRI), and a page here on how it is applied in this field.
STEM foundation of Reinsurance and Catastrophe in four parts.
The methods behind the field.
- 01Extreme value theory and tail riskPricing high excess layers · Hazard return levels · Tail dependence between perilsSteward · Reinsurance and CatastropheApplied here
- 02Actuarial mathematicsLayer pricing from model output · Blending experience and exposure rating · Capital allocationSteward · Actuarial and Quantitative RiskApplied here
- 03Climate and atmospheric scienceConditioning event frequencies · Scenario stress for capital · Reading attribution studiesSteward · Climate and HazardsApplied here
- 04Earth and geophysical scienceSeismic source models · Ground motion and site effects · Secondary hazardsSteward · Climate and HazardsApplied here
- 05Uncertainty quantification and model validationPrimary and secondary uncertainty · Sensitivity ranking · Multi-model ensemblesSteward · Systems Science and ModellingApplied here
- 06Hydrology and water scienceRiver flood event sets · Flood defence assumptions · Pluvial flood mappingSteward · Water NexusApplied here
- 07Ocean and coastal scienceStorm surge modelling · Sea level rise scenarios · Ocean heat and cyclone intensitySteward · Oceans and CoastsApplied here
- 08Structural and earthquake engineeringVulnerability by construction class · Building code effectiveness · Post-event damage surveysSteward · Cities and Built EnvironmentApplied here
The STEM methods Reinsurance and Catastrophe applies, and why.
- Extreme value theory in reinsuranceRole in Reinsurance and CatastropheExtreme value theory describes the tail of loss and hazard distributions: how large rare events may be and how uncertain those estimates become beyond the record.
- Actuarial pricing of catastrophe layersRole in Reinsurance and CatastropheActuarial mathematics turns exposure, loss experience and assumptions into reinsurance prices, reserves and capital.
- Climate science for catastrophe riskRole in Reinsurance and CatastropheClimate science explains how warming changes the hazards that drive catastrophe loss.
- Geoscience for earthquake catastrophe riskRole in Reinsurance and CatastropheGeoscience explains earthquakes, volcanic eruptions, landslides and tsunamis.
- Uncertainty in catastrophe modelsRole in Reinsurance and CatastropheUncertainty quantification separates and propagates the uncertainty in catastrophe models: in hazard, vulnerability, exposure and financial terms.
- Hydrology for flood catastrophe modelsRole in Reinsurance and CatastropheHydrology explains how rainfall becomes river and surface water flooding.
- Ocean science for storm surge riskRole in Reinsurance and CatastropheOcean science explains storm surge, sea level rise, ocean warming and tsunami.
- Structural vulnerability for cat modelsRole in Reinsurance and CatastropheStructural engineering explains how buildings and infrastructure respond to wind, ground shaking, flood and fire.
Each Reinsurance and Catastrophe method is described once in the STEM Commons at GCRI and applied here to catastrophe loss, risk transfer and capital.
Grounding makes claims checkable.
When a finding names the methods it depends on, a reader can see its assumptions and limits, and an expert in that method can challenge it.
Where this page’s references lead.
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
Pages in STEM foundation of Reinsurance and Catastrophe.
Extreme value theory and tail risk for reinsurance and catastrophe
MethodActuarial mathematics for reinsurance and catastrophe
MethodClimate and atmospheric science for reinsurance and catastrophe
MethodEarth and geophysical science for reinsurance and catastrophe
MethodUncertainty quantification and model validation for reinsurance and catastrophe
MethodHydrology and water science for reinsurance and catastrophe
MethodOcean and coastal science for reinsurance and catastrophe
MethodStructural and earthquake engineering for reinsurance and catastrophe
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