Significance and possibilities of major accident insurance

Jindrová, Pavla; Jakubínský, Radim

doi:10.15240/tul/001/2015-4-009

Cited by 1 publication

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“…More traditional models are Block maxima models which are for the largest observations collected from large samples observations. The whole sample is divided into equal non-overlapping time intervals and the biggest loss from each interval is used for modelling [13][14][15][16][17]. In the more modern approach using POT model (or the threshold exceedances model) the large enough threshold is determined and the observations above are considered [18][19][20][21].…”

Section: Source: Sigma Swiss Re [4]mentioning

confidence: 99%

Modelling of Insured Losses of Natural Catastrophes Using Block Maxima Model

2019

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Catastrophic events have a huge impact on society as a whole. Insurance, or reinsurance is one way of reducing the economic consequences of catastrophic events. By Sigma Swiss Re criteria the event can be noted as a catastrophe when the economic losses, insured claims or casualties associated with an event exceed just one of the thresholds. These thresholds are updated every year. We can observe a growing trend in both the number of catastrophic events as well as in total economic losses and insured losses too. Risk management of insurance and reinsurance companies have to have available relevant information for estimation and adjusting premium to cover these risks. The aim of this article is to present one of the useful method – block maxima method. This method uses information from historical events about insured losses of natural catastrophes and estimates future insured losses. These estimates are very important for actuaries and for risk managers as it is one of the bases for calculating and adjusting premiums of products covering these types of risks.

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Section: Source: Sigma Swiss Re [4]mentioning

confidence: 99%