This document provides an overview of catastrophe modeling. It discusses what catastrophe modeling is, why it is used, and how the models work. Catastrophe models use computer simulations to estimate the location, magnitude, and damage of potential natural disaster events. The models calculate expected loss frequencies and insured losses. They help answer questions about where future events may occur and their potential impacts.

1. Fundamentals of Cat Modeling

2. Agenda
• What is catastrophe modeling?
• Why use cat models?
• How cat models work
• Cat models inputs
• Cat models outputs & analytics
• Considerations/adjustments
Fundamentals of Cat Modeling

3. What is Catastrophe Modeling

4. A computerized system that generates a robust set of simulated events and:
 Estimates the magnitude/intensity and location
 Determines the amount of damage
 Calculates the possible insured loss
Cat models are designed to answer:
 Where future events can occur
 How big future events can be
 Expected frequency of events
 Potential damage and insured loss
What is a Catastrophe Model

5. Cat Modeling Fundamentals

6. Choices of Models

7. How Cat Models Work

8. Cat Model Components

9. Cat Model Components

10. Cat Model Components

11. Cat Model Components

12. Step-by-Step Cat Modeling

13. Terminology - Perils

14. Terminology - Perils

15. Terminology - Perils

16. Terminology – Model Results

17. Terminology – Model Results

18. Terminology - RMS

19. Terminology - RMS

20. Common Data Formats

21. What is EDM

22. Raw Data

23. Choices of Models

24. 25 Years of Cat Modeling

25. 25 Years of Cat Modeling

26. 25 Years of Cat Modeling

27. 25 Years of Cat Modeling

28. 25 Years of Cat Modeling

29. 25 Years of Cat Modeling

30. RMS Models

31. RMS Models

32. Summary

33. Conclusion