Catastrophe Modelling

Catastrophe modeling is a scientific process used by insurers and insurers to estimate potential financial losses from natural or man-made disasters such as earthquakes, hurricanes, or floods. It combines data on the event's likelihood, historical damage patterns, geographical information, and building characteristics to simulate possible scenarios. This helps companies understand risks, set appropriate premiums, and prepare for future events. Essentially, catastrophe models provide a detailed forecast of how severe a disaster could be financially, enabling better risk management and planning while acknowledging the inherent uncertainties of such events.