Windstorm hazard and insurance

Abstract

Windstorm losses are of increasing importance worldwide for the insurance industry. In particular, increases in the frequency and the extent of the losses in the case of major windstorm catastrophes are evident. When assessing the windstorm risk, meteorological as well as constructional investigations are made and the results are studied in order to determine the basic premium rate. Underwriting measures, especially the stipulation of deductibles, have a strong influence on the extent of the premium and drastically reduce the number of claims to be settled in the case of a catastrophe. The 10-minute average value of wind velocity is suggested as a parameter for the definition of windstorm. Determining the catastrophe potential is particularly important with regard to underwriting policy in countries with high insurance density and high windstorm exposure. The basis for this is the division of windstorm liabilities into so-called accumulation assessment zones, which makes it possible to simulate the distribution of intensity of extreme events. The critical evaluation of loss events, the correct and smooth settlement of claims - in the case of a catastrophe as well - and the introduction of loss prevention measures require detailed scientific and technical knowledge as well as comprehensive organizational measures on the part of the insurance industry.