The Study of Insurance Premium Rate Mapping Considering the Wind and Flood Hazard Risks

2015 ◽  
Vol 15 (1) ◽  
pp. 187-193 ◽  
Author(s):  
JunSeok Lee ◽  
InSu Lee
Keyword(s):  
Flood Hazard ◽  
Insurance Premium ◽  
Premium Rate

scholarly journals THE STUDY OF INSURANCE PREMIUM RATE GIS MAPPING CONSIDERING THE STORM AND FLOOD HAZARD RISKS

2016 ◽  
Vol XLI-B8 ◽  
pp. 95-98
Author(s):  
J. S. Lee ◽  
I. S. Lee
Keyword(s):  
Adverse Selection ◽  
Flood Hazard ◽  
Insurance Premium ◽  
Gis Mapping ◽  
Flood Insurance ◽  
Gis Analysis ◽  
Risk Area ◽  
High Risk Area ◽  
Premium Rate ◽  
Insurance Rate

Recently, the number of natural disaster occurrence is increasing because of abnormal changes of weather in Korea. In Korea the storm and flood insurance system is in effect to prevent these natural disasters. The national storm and flood insurance Premium rate is very low and the risk of adverse selection resides because of choosing by who lives in high risk area. To solve these problems, the storm and flood insurance rate map are required. In this study, the prototype of storm and flood insurance premium rate map of the Ulsan, Korea was made and the method of GIS analysis for the insurance premium rate calculating and the procedure of the Ulsan storm and flood insurance rate map were researched.

scholarly journals THE STUDY OF INSURANCE PREMIUM RATE GIS MAPPING CONSIDERING THE STORM AND FLOOD HAZARD RISKS

2016 ◽  
Vol XLI-B8 ◽  
pp. 95-98
Author(s):  
J. S. Lee ◽  
I. S. Lee
Keyword(s):  
Adverse Selection ◽  
Flood Hazard ◽  
Insurance Premium ◽  
Gis Mapping ◽  
Flood Insurance ◽  
Gis Analysis ◽  
Risk Area ◽  
High Risk Area ◽  
Premium Rate ◽  
Insurance Rate

Recently, the number of natural disaster occurrence is increasing because of abnormal changes of weather in Korea. In Korea the storm and flood insurance system is in effect to prevent these natural disasters. The national storm and flood insurance Premium rate is very low and the risk of adverse selection resides because of choosing by who lives in high risk area. To solve these problems, the storm and flood insurance rate map are required. In this study, the prototype of storm and flood insurance premium rate map of the Ulsan, Korea was made and the method of GIS analysis for the insurance premium rate calculating and the procedure of the Ulsan storm and flood insurance rate map were researched.

scholarly journals Fair Insurance Premium Rate in Connected SEIR Model under Epidemic Outbreak

2021 ◽  
Author(s):  
Alexey Chernov ◽  
Aleksandr Shemendyuk ◽  
Mark Kelbert
Keyword(s):  
Equivalence Principle ◽  
Initial Distribution ◽  
Insurance Premium ◽  
Epidemic Outbreak ◽  
Migration Rates ◽  
Optimal Insurance ◽  
Premium Rate ◽  
Simple Set ◽  
Insurance Costs ◽  
Set Up

In this paper, we aim to determine an optimal insurance premium rate for health-care in deterministic and stochastic SEIR models. The studied models consider two standard SEIR centres characterised by migration fluxes and vaccination of population. The premium is calculated using the basic equivalence principle. Even in this simple set-up, there are non-intuitive results that illustrate how the premium depends on migration rates, the severity of a disease and the initial distribution of healthy and infected individuals through the centres. We investigate how the vaccination program affects the insurance costs by comparing the savings in benefits with the expenses for vaccination. We compare the results of deterministic and stochastic models.

scholarly journals Design of Temperature Insurance Index and Risk Zonation for Single-Season Rice in Response to High-Temperature and Low-Temperature Damage: A Case Study of Jiangsu Province, China

2019 ◽  
Vol 16 (7) ◽  
pp. 1187 ◽  
Author(s):  
Ji Guo ◽  
Jiajia Jin ◽  
Yinshan Tang ◽  
Xianhua Wu
Keyword(s):  
High Temperature ◽  
Low Temperature ◽  
Damage Index ◽  
Reduction Rate ◽  
Insurance Premium ◽  
Jiangsu Province ◽  
Yield Reduction ◽  
Temperature Index ◽  
Premium Rate ◽  
Temperature Damage

Disaster insurance is an important tool for achieving sustainable development in modern agriculture. However, in China, the design of such insurance indexes is far from sufficient. In this paper, the single-season rice in Jiangsu Province of China is taken as an example to design the high-temperature damage index in summer and the low-temperature damage index in autumn to construct the formula calculating the weather output and single-season rice yield reduction. The daily highest, lowest and average temperatures between 1999 and 2015 are selected as main variables for the temperature disaster index to quantitatively analyze the relationship between the temperature index and the yield reduction rate of the single-season rice. The temperature disaster index can be put into the relevant model to obtain the yield reduction rate of the year and determine whether to pay the indemnity. Then, the burn analysis is used to determine the insurance premium rate for all cities in Jiangsu Province under four-level deductibles, and the insurance premium rate can be used for the risk division of the Province. The research provides some insights for the design of agricultural weather insurance products, and the empirical results provide a reference for the design of similar single-season rice temperature index insurance products.

scholarly journals Fair premium rate of the deposit insurance system based on banks’ creditworthiness

2019 ◽  
Vol 36 (1) ◽  
pp. 8-31 ◽  
Author(s):  
Naoyuki Yoshino ◽  
Farhad Taghizadeh-Hesary ◽  
Farhad Nili
Keyword(s):  
Financial Institutions ◽  
Deposit Insurance ◽  
Credit Rating ◽  
Financial System ◽  
Insurance Premium ◽  
Capital Adequacy ◽  
Rate System ◽  
Content Type ◽  
Premium Rate ◽  
Fair Premium

Purpose Deposit insurance is a key element in modern banking, as it guarantees the financial safety of deposits at depository financial institutions. It is necessary to have at least a dual fair premium rate system based on creditworthiness of financial institutions, as considering singular premium system for all banks will have moral hazard. This paper aims to develop theoretical and empirical model for calculating dual fair premium rates. Design/methodology/approach The definition of a fair premium rate in this paper is a rate that covers the operational expenditures of the deposit insuring organization, provides it with sufficient funds to enable it to pay a certain percentage share of deposit amounts to depositors in case of bank default and provides it with sufficient funds as precautionary reserves. To identify and classify healthier and more stable banks, the authors use credit rating methods that use two major dimensional reduction techniques. For forecasting nonperforming loans (NPLs), the authors develop a model that can capture both macro shocks and idiosyncratic shocks to financial institutions in a vector error correction model. Findings The response of NPLs/loans to macro shocks and idiosyncratic innovations shows that using a model with macro variables only is insufficient, as it is possible that under favorable economic conditions, some banks show negative performance due to bank level reasons such as mismanagement or vice versa. The final results show that deposit insurance premium rate needs to be vary based on banks’ creditworthiness. Originality/value The results provide interesting insight for financial authorities to set fair deposit insurance premium rate. A high premium rate reduces the capital adequacy of individual financial institutions, which endangers the stability of the financial system; a low premium rate will reduce the security of the financial system.

Flood Hazard Pricing and Insurance Premium Differentials: Evidence from the Housing Market

1990 ◽  
Vol 57 (4) ◽  
pp. 654 ◽  
Author(s):  
Don N. MacDonald ◽  
Harry L. White ◽  
Paul M. Taube ◽  
William L. Huth
Keyword(s):  
Housing Market ◽  
Flood Hazard ◽  
Insurance Premium

scholarly journals Research on Revenue Insurance Premium Ratemaking of Jujube Based on Copula-Stochastic Optimization Model

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Li-Mei Qi ◽  
Ruo-Yu Yao ◽  
Xing-Zhe Zhang ◽  
Yu-Jing Zhang ◽  
Xiao-Yin Wang ◽  
...  
Keyword(s):  
Stochastic Optimization ◽  
Optimization Model ◽  
Unit Area ◽  
Copula Function ◽  
Insurance Premium ◽  
Distribution Functions ◽  
Risk Minimization ◽  
Premium Rate ◽  
Empirical Copula ◽  
Revenue Insurance

During the process of jujube planting, there are not only natural risks caused by natural disasters but also market risks caused by price factors. In the study, firstly, wavelet analysis method was used to stabilize the jujube yield per unit area and the jujube price from 1997 to 2018 in Aksu region, Xinjiang, China. Secondly, EasyFit software was used to fit the distribution functions of yield per unit area and price, respectively. Thirdly, the optimal Copula function which connects the marginal distribution functions and its joint distribution function was selected with the principle of “the minimum square distance from the empirical Copula function.” Finally, taking the premium rate and the insurance amount as two decision variables, the farmer’s risk minimization as the objective function, around the four constraints of functions and role of insurance, the nonspeculative nature of insurance, the sustainability of insurance, and the moral hazard factors and the farmers’ willing to participate in insurance, the Copula-stochastic optimization model was set up to determine the premium rate of jujube revenue insurance in Aksu region.

scholarly journals Sampling Distributions of Critical Illness Insurance Premium Rates: Breast and Ovarian Cancer

2008 ◽  
Vol 38 (2) ◽  
pp. 527-542 ◽  
Author(s):  
Li Lu ◽  
Angus Macdonald ◽  
Howard Waters
Keyword(s):  
Ovarian Cancer ◽  
Critical Illness ◽  
Epidemiological Studies ◽  
Insurance Premium ◽  
Parameter Estimates ◽  
Breast And Ovarian Cancer ◽  
Premium Rate ◽  
Relative Risks ◽  
Sampling Distributions ◽  
Premium Rates

Evaluating the risk of disorders in long-term insurance often relies on rates of onset estimated from quite small epidemiological studies. These estimates can carry considerable uncertainty, hence so may functions of them, such as a premium rate. In the case of genetic disorders, where it may be required to demonstrate the reliability of genetic information as a risk factor, such uncertainty may be material. Epidemiological studies publish their results in a variety of forms and it is rarely easy to estimate the sampling distribution of a premium rate without access to the original data. We found a large study of breast and ovarian cancer that cited relative risks of breast and ovarian cancer onset, with confidence intervals, in 10-year age groups. We obtained critical illness premium rates and their sampling distributions by parametric bootstrapping, and investigated the effect of possible patterns of sampling correlations. We found that this study provides ample statistical evidence that known BRCA1 or BRCA2 mutations, or a typical family history of breast or ovarian cancer, are reliable risk factors, but the sampling covariances of the relative risks could be important at some ages and terms. Studies that cite only standard errors of parameter estimates erect a small but awkward barrier between the models they describe, and some important actuarial questions.

scholarly journals Sampling Distributions of Critical Illness Insurance Premium Rates: Breast and Ovarian Cancer

2008 ◽  
Vol 38 (02) ◽  
pp. 527-542 ◽  
Author(s):  
Li Lu ◽  
Angus Macdonald ◽  
Howard Waters
Keyword(s):  
Ovarian Cancer ◽  
Critical Illness ◽  
Epidemiological Studies ◽  
Insurance Premium ◽  
Parameter Estimates ◽  
Breast And Ovarian Cancer ◽  
Premium Rate ◽  
Relative Risks ◽  
Sampling Distributions ◽  
Premium Rates

Evaluating the risk of disorders in long-term insurance often relies on rates of onset estimated from quite small epidemiological studies. These estimates can carry considerable uncertainty, hence so may functions of them, such as a premium rate. In the case of genetic disorders, where it may be required to demonstrate the reliability of genetic information as a risk factor, such uncertainty may be material. Epidemiological studies publish their results in a variety of forms and it is rarely easy to estimate the sampling distribution of a premium rate without access to the original data. We found a large study of breast and ovarian cancer that cited relative risks of breast and ovarian cancer onset, with confidence intervals, in 10-year age groups. We obtained critical illness premium rates and their sampling distributions by parametric bootstrapping, and investigated the effect of possible patterns of sampling correlations. We found that this study provides ample statistical evidence that known BRCA1 or BRCA2 mutations, or a typical family history of breast or ovarian cancer, are reliable risk factors, but the sampling covariances of the relative risks could be important at some ages and terms. Studies that cite only standard errors of parameter estimates erect a small but awkward barrier between the models they describe, and some important actuarial questions.

scholarly journals Flood risk assessment and scenarios for a flood insurance program in central Vietnam EGU2018

2020 ◽  
Author(s):  
Thoa Hoang ◽  
Magali Zuanon ◽  
Tu Vu ◽  
Roberto Ranzi
Keyword(s):  
Flood Risk ◽  
Flood Hazard ◽  
Insurance Premium ◽  
Paddy Rice ◽  
Insurance Companies ◽  
Flood Insurance ◽  
Insurance Program ◽  
Central Vietnam ◽  
Flood Losses

Severe floods occur in several coastal area of Vietnam and causes both properties and causalities. It is important to guide local households in selecting risk management strategies according to their capacity to reduce significant damage (Molinari et al). Insurance was recently recognized as one of the possible non structural measures to mitigate losses and damages from natural disasters (UNISDR, 2015). Despite the huge effect on citizens' life from flood risk and believable higher damages caused by flood in the future due to climate change, it is surprising that there is no flood insurance program in Vietnam. This paper investigates the vulnerability of households to flood and suggests a conceptual framework to implement possible scenarios of flood insurance programs for Central Vietnam. We implement 2D simulations of the physical hazard in term of flooding, velocity, depth and duration, and then combined the flood hazard maps, exposure and vulnerability maps to obtain risk maps. We calculate major flood damages, regarding housing damages and paddy rice damages, for five different return periods (10, 20, 50, 100, 200 years). Based on 386, out of 400 responses to 35 questions in a questionnaire directly related to flood risk and preparedness, the vulnerability curve for direct tangible costs to building structure, building contents, and paddy rice were assessed. We also find that, in the long term, with a proper flood insurance premium, three actors (Vietnam Government, insurance companies, and local households) could all achieve their targets. Local households are insured by insurance contracts against flood losses with a reasonable insurance premium. Vietnam Government might reduce its budget for subsidising local households after flooding by transferring flood risk to insurance companies. Insurance companies might make profits in long term as this market has a potential growth in Vietnam. One more important contribution of this paper is that this measure could guide land planning toward decisions which tend to minimize the total flood losses

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