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A Guide to Catastrophe Modeling - RMS

A Guide TO Catastrophe MODELLINGIN ASSOCIATION WITHCat modelling Guide 2008 5/12/08 17:33 Page 12 The review A Guide to Catastrophe Modelling 2008 Catastrophe MODELLING: A STEP-BY-STEP EXAMPLE1. User enters location data and building characteristics into modelThe basic framework for modelling perils is similar. Thisexample illustrates the steps a user would take to arrive atan estimation of modelled losses from hurricane risk to agiven location. 2. Model geocodes location to its geographic coordinates, identifying location s distance to coast 3. Stochastic event module defines event set for specified location and storm type4.

4 The Review • A Guide to Catastrophe Modelling • 2008 A shifting spectrum Cat modelling guide 2008 5/12/08 17:33 Page 4. ... knowledge about what determines the probability of extreme events occurring, and the need to understand all the potential pathways to loss. But models provide a mechanism to integrate

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