A systems approach to modelling catastrophic risk and insurability
The management of catastrophic risks implies allocation of resources for mitigation and strategies for risk sharing, e.g. insurance. To minimize bankrupt risks, insurance should be integrated within the overall measures of a country in coping with the risks. To study the problem in its complexity a spatial-dynamic, stochastic optimization model has been proposed at IIASA, enabling to analyze the interplay between investment and mitigation and risk sharing measures. In this particular application, the model has been exploited to exemplify its ability to generate insurance strategies, which are robust with respects to uncertainties and minimize bankruptcy risk.
Bibliographic Reference: Article: Natural Hazards, 1998
Record Number: 199910363 / Last updated on: 1999-03-12
Original language: en
Available languages: en