Earthquake insurance pricing

A Risk-Based Approach

Bibliographic Data

ID3898067
AuthorsJeng‐hsiang Lin (Professor, Department of Architecture Hwa Hsia University of Technology Taiwan), Jeng Hsiang Lin (0000-0003-3894-3840, Hwa Hsia University of Technology, corresponding author)
Year2018
Volume42
Issue2
Pages392-404
Publication date2018-04-01
Open AccessYes
TypeARTICLE
VenueDisasters (JOURNAL)
Journal identifiersISSN: 0361-3666 • E-ISSN: 1467-7717
PublisherWiley (PUBLISHER • GB)
DOI10.1111/disa.12247
PMID28543429
OpenAlexW2617680010
LanguageEN
Citations received2
References cited7

Flat earthquake premiums are 'uniformly' set for a variety of buildings in many countries, neglecting the fact that the risk of damage to buildings by earthquakes is based on a wide range of factors. How these factors influence the insurance premiums is worth being studied further. Proposed herein is a risk-based approach to estimate the earthquake insurance rates of buildings. Examples of application of the approach to buildings located in Taipei city of Taiwan were examined. Then, the earthquake insurance rates for the buildings investigated were calculated and tabulated. To fulfil insurance rating, the buildings were classified into 15 model building types according to their construction materials and building height. Seismic design levels were also considered in insurance rating in response to the effect of seismic zone and construction years of buildings. This paper may be of interest to insurers, actuaries, and private and public sectors of insurance

Actuarial science · Business · Casualty insurance · Civil engineering · Earthquake scenario · Insurance policy · Property insurance · Seismic hazard · Seismic risk · Statistics · Urban seismic risk · Variety (cybernetics · earthquake and tectonic studies · Engineering · Mathematics · Probabilistic and Robust Engineering Design · Seismic Performance and Analysis

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