What is the definition of Catastrophe Model?
The Catastrophe Model is a complicated and often computer-generated simulation model that is used to show the potential costs of a certain catastrophe. The cost is computed over a certain geographical location and uses pertinent information such as current demographics and the number of buildings in place.
The Catastrophe Model provides the insurance company with hypothetical loss data that goes as far as thousands of years. This will help in determining premiums for property insurance.
There are three catastrophe models that can be used: 1) the Damage or Engineering Module (which looks into the potential damage vulnerability of a specific structure; 2) the Hazard Module (which looks at the characteristics of natural hazards and the probability that these will happen) and 2) the Financial Module (which tries to compute for the financial losses in a catastrophe).
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- Catastrophe Reinsurance
- Cell Phone Insurance
- Chartered Financial Consultant (ChFC)
- Chartered Life Underwriter (CLU)
- Chartered Property/Casualty Underwriter (CPCU)
- Claims Made Policy
- COBRA
- Coinsurance
- Collateral
- Collateral Assignment
- Catastrophe Factor
- Catastrophe Deductible
- Catastrophe Bonds
- Catastrophe
- Cash Value
- Cash Surrender Value
- Cash Payment Option
- Cash Dividend Option
- Case Management
- Car Year