Catastrophic Events, Claims and Risks

Abstract

We define some concepts concerned with the catastrophes and the risks related to them. The subject is considered the reference term and hence the approach to the matter is relative. The adjective catastrophic is then the most appropriate to relate the event, the claim and the risk to a subject. We distinguish the random environment (before scenario) from the deterministic one (after scenario). In the first, we define the potentially catastrophic claim, the potentially catastrophic event and the catastrophic risk, while the after scenario is described only by means of the size of the loss. Particularly, we define the catastrophic risk for a property-casualty insurance company.

[DOI: 10.1685/CSC06084] About DOI