Catastrophic risks and insurance

• Main Authors: Kerkez Marija, Ivanović Ivan
• Format: Article
• Language: English
• Published: University Dzon Nezbit 2016-01-01
• Series: Megatrend Revija
• Subjects: insurance; catastrophic risks; risk matrix; macro catastrophic risks; reliability analysis
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2016/1820-31591602017K.pdf

Catastrophic events do not know borders; they threat the local community, but also the whole continent. Catastrophic risk represents the individual risk which endangers a relatively large number of people or property, at the same time posing a threat to insurer's financial strength. One of the most serious problems of modern society is the lack of awareness of the presence of various dangers and possibilities of influencing them. Macro catastrophic event causes losses across several lines of insurance business or can cause loss in unexpected locations or across multiple geographical markets. Risk assessment requires a systematic approach to identifying and analyzing risks. Due to the complexity and unpredictability of natural and technological hazards, different approaches to risk assessment and evaluation systems are a growing challenge and a necessity in the sphere of management catastrophic risks.