Risk Factors

Catastrophe Modeling

Catastrophe Modeling is defined as: Computer models used to estimate potential losses from natural disasters like hurricanes, earthquakes, and floods.

Catastrophe models help insurers assess risk and set rates for properties in disaster-prone areas using historical data and scientific analysis.

Related Terms

Risk Assessment

The evaluation of potential risks and hazards that could affect a property or cause insurance claims.

Underwriting

The process insurance companies use to evaluate risk and determine whether to provide coverage and at what price.

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