Catastrophe Modeling: A New Approach to Managing Risk

  • Partricia Grossi
  • Howard Kunreuther

Part of the Catastrophe Modeling book series (HSRI, volume 25)

Table of contents

  1. Front Matter
    Pages i-xix
  2. Framework for Risk Management Using Catastrophe Models

    1. Patricia Grossi, Howard Kunreuther
      Pages 3-21
    2. Patricia Grossi, Howard Kunreuther, Don Windeler
      Pages 23-42
  3. Natural Hazard Risk Assessment

  4. Linking Risk Assessment With Insurance

    1. Weimin Dong, Patricia Grossi
      Pages 119-133
    2. David Lalonde
      Pages 135-164
  5. Risk Management Strategies Using Catastrophe Models

    1. Paul Kleindorfer, Patricia Grossi, Howard Kunreuther
      Pages 167-188
    2. Howard Kunreuther, Paul Kleindorfer, Patricia G
      Pages 189-208
    3. Howard Kunreuther, Erwann Michel-Kerjan, Beverly Porter
      Pages 209-233
  6. Back Matter
    Pages 235-245

About this book


Catastrophe Modeling: A New Approach to Managing Risk is the first book that systematically analyzes how catastrophe models can be used for assessing and managing risks of extreme events. It focuses on natural disaster risk, but also discusses the management of terrorism risk. A unique feature of this book is the involvement of three leading catastrophe modeling firms, AIR Worldwide, EQECAT, and Risk Management Solutions, who examine the role of catastrophe modeling in rate setting, portfolio management and risk financing.

Using data from three model cities (Oakland, CA, Long Beach, CA and Miami/Dade County, FLA), experts from the Wharton School of the University of Pennsylvania examine the role of catastrophe modeling to develop risk management strategies for reducing and spreading the losses from future disasters. Given the uncertainties associated with terrorism the book points out the opportunities for utilizing catastrophe models to set insurance rates and to examine public-private partnerships for providing financial assistance in the event of a terrorist attack.


"This book fills a critical need in setting forth the role of modern risk analysis in managing catastrophe risk. There is no comparable reference work for this important subject area. The book is well written and well organized. It contains contributions from many of the most distinguished experts in the fields of risk analysis and risk management. It strikes a good balance between the technical aspects of the subject and the practical aspects of decision making."

"This book is strongly recommended for individuals who must make decisions regarding the management of impacts of catastrophe risks including those in both the public and private sector."

Wilfred D. Iwan

Professor of Applied Mechanics, Emeritus

Director, Earthquake Engineering Research Laboratory

California Institute of Technology

"The authors have captured the essence of catastrophe modeling: its value, its utility and its limitations. Every practitioner in the catastrophe risk field should read this book."

Franklin W. Nutter, President

Reinsurance Association of America


Financing assessment portfolio management risk management utility

Editors and affiliations

  • Partricia Grossi
    • 1
  • Howard Kunreuther
    • 1
  1. 1.Risk Management and Decision Processes CenterThe Wharton School University of PennsylvaniaPennsylvania

Bibliographic information

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