Catastrophe Modeling

A catastrophe model is a sophisticated program that plots extensive scientific, architectural and financial data. This manufactured database not only exhibits the financial consequences that can be expected from the occurrence of each simulated catastrophic event, but also provides indications of the relative uncertainty or risk of loss to all or part of the exposure being modeled.
The results of these models allows the client to identify,  quantify and understand the risks enabling us to structure and offer a policy  that provides adequate coverage should a catastrophic event occur.

The three main modules of a catastrophe risk model are outlined as follows:

1) Hazard or Science Module - Defines the range of potential events representing the natural hazards (earthquakes, hurricanes, etc.) in terms of their physical characteristics and their probability of occurrence.

2) Damage or Engineering Module - Defines the potential damage vulnerability to a particular type of structure caused by a specific event.

3) Financial Module - Applies the damages against insurance and reinsurance contract specifications to determine the financial losses from an event