Flashcards

Earthquake Set 1

Genevieve Gagnon FCAS Exam6C Inglês 5 flashcards

Flashcards do conjunto (5)

13 important actions an insurer should do concerning its earthquake exposure1. Measure
2. Monitor
3. Limit
according to a prudent risk appetite and risk tolerance
23 technique to manage the risk1. Avoidance
2. Risk Transfer
3. Limit
3Why is important to have comprehensive policies and procedures1. Complexities of earthquake exposure risk management
2. Potential high severity losses
3. Difficult to mitigate the risks post-event
4. High public profile
4Factors that affect Earthquake Exposure Risk Management:1. size;
2. ownership structure;
3. nature,
4. scope and complexity of operations;
5. corporate strategy;
6. risk profile.
5Define PMLThreshold dollar value of losses beyond which losses caused by a major earthquake are unlikely.
Probabilistic models: PML is return
period loss, which is defined as the dollar level of loss expected to be exceeded once in every X years.