[[Actuarial Notes Wiki|Wiki]] / [[Actuarial Methods]] / **==Catastrophe Modelling==** > "==Catastrophes== are infrequent events that cause severe loss, injury or property damage to a large population of exposures. " > - [Actuarial Glossary](https://www.soa.org/4a537f/globalassets/assets/files/edu/actuarial-glossary.pdf) - SOA > ==Catastrophe modelling== is a systematic approach to quantify the risks of extreme events and design strategies for financial protection. | Section | Description | | ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | | [[Catastrophe Modelling Framework]] | Catastrophe models are made up of several parts, such as simulation of events, hazards, vulnerabilities, and ultimately estimation of financial risk. | | [[Data for Catastrophe Modelling]] | Data used in catastrophe models include geolocation, temperature, wind strength, terrain, architecture, building codes, contents, rebuild costs, and more. | | [[Climate Change]] | How are catastrophe models adapted for changes in climate? | ## Catastrophe Modelling for Reinsurers In the [[reinsurance]] industry, catastrophic risk assessment is crucial for pricing, reserve setting, and capital allocation. ## Sources 1. [A Guide to Catastrophe Modelling](https://forms2.rms.com/rs/729-DJX-565/images/rms_guide_catastrophe_modeling_2008.pdf) (The Review - Worldwide Insurance in Collaboration with RMS, 2008)