Date of Graduation

Spring 2018

Document Type

Honors Research Project

Degree Name

Bachelor of Science

Major

Statistics - Actuarial Science

Research Sponsor

Dr. Nao Mimoto

First Reader

Dr. Rich Einsporn

Second Reader

Dr. Jill Bisco

Abstract

The Importance and Development of Catastrophe Models

I thought this was a very interesting project to work on. I was intrigued by catastrophe models and how the insurance industry will be able to use them to better predict natural disasters moving forward. From my research, I found that these models are quite effective, and will only improve as time goes on. As more data is gathered and input into the models, the quality of output will only improve, helping insurers and all of us, in the form of more accurate insurance rates. I was surprised to see just how devastating some of these natural events could be, which further illustrates the need for an effective way to be able to predict how likely these super storms are to occur. From my data analysis I found many storms that caused billions of dollars of damage and widespread devastation in just the last few years. Obviously, catastrophe modelling won’t be able to prevent these events, but they will help everyone have a better understanding of the risks and be more prepared for them when they do unfortunately occur.

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