Earthquake Insurance Risk
This series includes technical reports prepared by faculty, students and staff who are associated with the John A. Blume Earthquake Engineering Center at Stanford University. While the primary focus of Blume Center is earthquake engineering, many of the reports in this series encompass broader topics in structural engineering and materials, computational mechanics, geomechanics, structural health monitoring, and engineering life-cycle risk assessment. Each report includes acknowledgments of the specific sponsors for the report and underlying research. In addition to providing research support, the Blume Center provides administrative support for maintaining and disseminating the technical reports. For more information about the Blume Center and its activities, see https://blume.stanford.edu.
The main topics of this report are the development of models to estimate earthquake insurance premium rates and insurance strategies. Combinations of probabilistic iso-damage and exposure maps are used to forecast insurance losses and determine insurance rates. The issue of the potential threat of loss accumulation is also treated. Dynamic and stochastic dynamic programming models are developed. Then these models are employed to forecast limits within which the insurance business will flow in time. Insurance rates, loss accumulation, solvency problems, reserve allocation, and reinsurance distribution are treated with these models.
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