Impact of Seismic Risk on the Financial Reserves Required for An Insured Portfolio


Abstract eng:
Chile has been regularly affected by destructive earthquakes. Some of these earthquakes have resulted in great economic losses, in addition to the loss of human life and social disruption. The insurance industry has participated as an important player in the financial recovery of losses incurred by its policyholders. It is then consequent that from the 1985 Chile earthquake, the insurance companies operating in Chile have seen their exposed portfolios regularly increasing. The 2010 Maule earthquake caused USD 30 billion of estimated losses in the country; USD 7.5 billion came from claims paid by the insurers. The insurance industry in Chile traditionally sets the financial reserves according to static formulas based in part by past experience and procures reinsurance coverage for their portfolios, analyzing computational results obtained by riskbased software models using available technologies developed in foreign countries and by foreign experts and “adapted” to Chile. The Association of Insurers of Chile has begun the development of its own model to calculate the probable maximum losses of portfolios insured in Chile, which is presented herein with preliminary results obtained by the model as applied to an actual insured portfolio exposed to the 2010 Maule earthquake.

Contributors:
Conference Title:
Conference Title:
16th World Conference on Earthquake Engineering
Conference Venue:
Santiago (CL)
Conference Dates:
2017-01-09 / 2017-01-13
Rights:
Text je chráněný podle autorského zákona č. 121/2000 Sb.



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 Record created 2017-01-18, last modified 2017-01-18


Original version of the author's contribution as presented on USB, paper 2483.:
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