Evolution of seismic risk management for insurance over the past 30 years

During the past 30 years, there has been spectacular growth in the use of risk analysis and risk management tools developed by engineers in the financial and insurance sectors. The insurance, the reinsurance, and the investment banking sectors have enthusiastically adopted loss estimation tools developed by engineers in developing their business strategies and for managing their financial risks. As a result, insurance/reinsurance strategy has evolved as a major risk mitigation tool in managing catastrophe risk at the individual, corporate, and government level. This is particularly true in developed countries such as US, Western Europe, and Japan. Unfortunately, it has not received the needed attention in developing countries, where such a strategy for risk management is most needed. Fortunately, in the last five years, there has been excellent focus in developing ＂Insur Tech＂ tools to address the much needed ＂Insurance for the Masses＂, especially for the Asian Markets. In the earlier years of catastrophe model development, risk analysts were mainly concerned with risk reduction options through engineering strategies, and relatively little attention was given to financial and economic strategies. Such state-of-affairs still exists in many developing countries. The new developments in the science and technologies of loss estimation due to natural catastrophes have made it possible for financial sectors to model their business strategies such as peril and geographic diversification, premium calculations, reserve strategies, reinsurance contracts, and other underwriting tools. These developments have not only changed the way in which financial sectors assess and manage their risks, but have also changed the domain of opportunities for engineers and scientists.This paper will address the issues related to developing insurance/reinsurance strategies to mitigate catastrophe risks and describe the role catastrophe risk insurance and reinsurance has played in managing financial risk due to natural catastrophes. Historical losses and the share of those losses covered by insurance will be presented. How such risk sharing can help the nation share the burden of losses between tax paying public, the ＂at risk＂ property owners, the insurers and the reinsurers will be discussed. The paper will summarize the tools that are used by the insurance and reinsurance companies for estimating their future losses due to catastrophic natural events. The paper will also show how the results of loss estimation technologies developed by engineers are communicated to the business flow of insurance/reinsurance companies. Finally, to make it possible to grow ＂Insurance for the Masses - IFM＂, the role played by parametric insurance products and Insur Tech tools will be discussed.

Exciting News from Indentations onto Silicon, Copper, and Tungsten

Indentations onto crystalline silicon and copper with various indenter geometries, loading forces at room temperature belong to the widest interests in the field, because of the physical detection of structural phase transitions. By using the mathematically deduced FNh3/2 relation for conical and pyramidal indentations we have a toolbox for deciding between faked and experimental loading curves. Four printed silicon indentation loading curves (labelled with 292 K, 260 K, 240 K and 210 K) proved to be faked and not experimental. This is problematic for the AI (artificial intelligence) that will probably not be able to sort faked data out by itself but must be told to do so. High risks arise, when published faked indentation reports remain unidentified and unreported for the mechanics engineers by reading, or via AI. For example, when AI recommends a faked quality such as “no phase changes” of a technical material that is therefore used, it might break down due to an actually present low force, low transition energy phase-change. This paper thus installed a tool box for the distinction of experimental and faked loading curves of indentations. We found experimental and faked loading curves of the same research group with overall 14 authoring co-workers in three publications where valid and faked ones were next to each other and I can thus only report on the experimental ones. The comparison of Si and Cu with W at 20-fold higher physical hardness shows its enormous influence to the energies of phase transition and of their transition energies. Thus, the commonly preferred ISO14577-ASTM hardness values HISO (these violate the energy law and are simulated!) leads to almost blind characterization and use of mechanically stressed technical materials (e.g. airplanes, windmills, bridges, etc). The reasons are carefully detected and reported to disprove that the coincidence or very close coincidence of all of the published loading curves from 150 K to 298 K are constructed but not experimental. A tool-box for distinction of experimental from faked indentation loading curves (simulations must be indicated) is established in view of protecting the AI from faked data, which it might not be able by itself to sort them out, so that technical materials with wrongly attributed mechanical properties might lead to catastrophic accidents such as all of us know of. There is also the risk that false theories might lead to discourage the design of important research projects or for not getting them granted. This might for example hamper or ill-fame new low temperature indentation projects. The various hints for identifying faked claims are thus presented in great detail. The low-temperature instrumental indentations onto silicon have been faked in two consecutive publications and their reporting in the third one, so that these are not available for the calculation of activation energies. Conversely, the same research group published an indentation loading curve of copper as taken at 150 K that could be tested for its validity with the therefore created tools of validity tests. The physical algebraic calculations provided the epochal detection of two highly exothermic phase transitions of copper that created two polymorphs with negative standard energy content. This is world-wide the second case and the first one far above the 77 K of liquid nitrogen. Its existence poses completely new thoughts for physics chemistry and perhaps techniques but all of them are open and unprepared for our comprehension. The first chemical reactions might be in-situ photolysis and the phase transitions can be calculated from experimental curves. But several further reported low temperature indentation loading curves of silicon were tested for their experimental reality. And the results are compared to new analyses with genuine room temperature results. A lot is to be learned from the differences at room and low temperature.

Establishment and Application of Assessment Indicator System of Agricultural Catastrophe Vulnerability

To give play to the role of agricultural catastrophe risk fund in spreading agricultural catastrophe risk,we select natural conditions,economic conditions,social conditions,as the external vulnerability assessment indicators;select commodity rate of agricultural products,substitutability of agricultural products,the extent of agricultural products being related to the national economy and the people's livelihood,as the internal vulnerability assessment indicators.We assign weight to indicators using Analytic Hierarchy Process,and establish assessment indicator system of agricultural catastrophe vulnerability,to analyze the compensation for losses of different agricultural products arising from agricultural catastrophe in different regions.And we take the case of rice in Sichuan Province,to demonstrate the role this indicator system.

Agricultural Risk Modeling Challenges in China:Probabilistic Modeling of Rice Losses in Hunan Province

This article summarizes a joint research projec undertaken under the Risk Management Solutions, Inc(RMS) banner to investigate some of the possible approaches for agricultural risk modeling in China. Two modeling approaches were investigated—the simulated weather crop index and the burn yield analysis approach. The study was limited to Hunan Province and a single crop—rice. Both modeling approaches were dealt with probabilistically and were able to produce probabilistic risk metrics. Illustrative model outputs are also presented. The article discusses the robustness of the modeling approaches and their dependence on the availability, access to, and quality of weather and yield data. We offer our perspective on the requirements for models and platforms for agricultural risk quantification in China in order to respond to the needs of all stakeholders in agricultural risk transfer.