Narrow Results

Natural disasters — earthquakes, hurricanes and other storms — cause substantial property damage and loss of life in many parts of the world. The relative infrequency and importance of extreme cases leads to a preferential use of simulation models over historical statistical/actuarial models in studying the impact of such catastrophes on insurance systems. Given the increasing awareness of the highly intermittent nature of geophysical phenomena, modelers need to revisit their assumptions not only of the geophysical fields, but also of the geographical distribution of insured property as well. This paper explores the distribution of insured property through the lens of multifractal theory.