Catastrophe Modeling: A New Approach to Managing Risk (2005)

This is the first book that systematically analyzes how catastrophe models can be used for assessing and managing risks of extreme events. It focuses on natural disaster risk, but also discusses the management of terrorism risk. Three leading catastrophe modeling firms (AIR Worldwide, EQECAT, RMS) examine the role of catastrophe modeling in rate setting, portfolio management and risk financing. Given the uncertainties associated with terrorism, the book points out the opportunities for utilizing catastrophe models to set insurance rates and to examine public-private partnerships for providing financial assistance in the event of a terrorist attack.