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- Title
Seismic Risk Management of Insurance Portfolio Using Catastrophe Bonds.
- Authors
Goda, Katsuichiro
- Abstract
Parametric earthquake catastrophe bonds are emerging risk transfer instruments for governments and insurers. This study extends a current station-intensity-based trigger method for binary payments, which utilizes direct observation of ground motions at recording stations, by promoting a more flexible multiple-discrete payment structure. A calibration procedure of the bond trigger mechanism for the new approach is demonstrated by focusing upon a realistic portfolio of conventional wood-frame houses in Vancouver, Canada. Numerical results indicate that the new method with a multiple-discrete payment structure decreases the magnitude of trigger errors significantly in terms of seismic loss, and facilitates the flexible adoption of various payment structures for catastrophe bonds. Furthermore, a synergy between the calibration of parametric catastrophe bonds and the current performance-based earthquake engineering framework is highlighted.
- Subjects
EARTHQUAKE hazard analysis; EARTHQUAKE engineering; INSURANCE; INSURABLE risks; CATASTROPHE bonds
- Publication
Computer-Aided Civil & Infrastructure Engineering, 2015, Vol 30, Issue 7, p570
- ISSN
1093-9687
- Publication type
Article
- DOI
10.1111/mice.12093