Student Research Paper
Dr. Gabriela Sanchis
In recent years, we have seen quite a few large catastrophes, ranging from natural disasters to pandemics, have a huge impact on the lives of everyday Americans. In particular, the devastating effects of the Coronavirus have shown how important it is to prepare for these catastrophes. Both insurance and reinsurance companies must ensure they can transfer some of the risk of these low-frequency, high-severity events to other entities. However, it is difficult to know how much risk-sharing is needed, considering it is tough to predict future catastrophes. Therefore, this paper analyzes the effects of catastrophes on the insurance and reinsurance markets, explores different methods that are used to manage catastrophic losses, and investigates how catastrophe models are built and used in the insurance industry.
Albin, Joshua, "The Effects of Catastrophes on Insurance and Reinsurance Markets" (2021). Mathematical Science: Student Scholarship & Creative Works. 6.