Evaluation Study of a New Insurance Model for Extreme Weather

With the impact of climate change, extreme weather and natural disasters occur frequently around the world, which brings great challenges and pressure to the insurance industry. This paper focuses on how to establish a new insurance model adapted to different regions and types of disasters to assist insurance companies on the basis of catastrophe modeling and proposes to construct a value assessment model. This paper discusses how to assess catastrophe insurance risks in different regions to help insurance companies make decisions. In this study, disaster-related data of 146 countries and regions around the world were collected. The probability of occurrence of natural disasters is modeled using Poisson distribution, and the excellent rate of the loss ratio coefficient reaches above 0.9. The disaster insurance risk assessment (DIRA) model is established and risk factors are introduced to solve the problem. Taking storm disasters in the United States and earthquake disasters in China as examples, we found that under the critical value of 20%, insurance companies can provide insurance if the risk factor is greater than the critical value.