Catastrophe modeling

Catastrophe modeling is a scientific approach used to estimate the potential impacts of natural disasters, like earthquakes, hurricanes, or floods. It combines historical data, computer simulations, and risk assessment to predict damage to properties, infrastructure, and financial losses. Insurers and governments use these models to prepare for and mitigate the effects of disasters, helping to set insurance premiums and allocate resources. By understanding the potential risks and consequences, stakeholders can make informed decisions to protect communities and manage funds effectively in the face of catastrophic events.