Measuring and Managing Catastrophe Risk

This paper gives a basic introduction to the standard framework behind catastrophe modeling and explores the output of catastrophe modeling via modernized pin maps and loss likelihood curves. This paper also briefly discusses some of the uses of catastrophe modeling in addition to traditional probable maximum loss estimation and comments on the use of modeling for reinsurers. This article is intended to be food for thought and hopes to stimulate new catastrophe modeling ideas and enhancements.