Know your correlation: An interactive game: Difference between revisions
A dice-rolling game, simulating 6 causes of loss (i.e. possible hazards) and how dependency affects the chance of loss exceeding a threshold. |
Myriad-admin (talk | contribs) No edit summary |
||
| Line 23: | Line 23: | ||
Back to '''[[Multi-hazard Risk Assessment|<span style="color: #374CFF">Multi-hazard Risk Assessment]]''' | Back to '''[[Multi-hazard Risk Assessment|<span style="color: #374CFF">Multi-hazard Risk Assessment]]''' | ||
</div> | </div> | ||
[[Category|Multi-hazard Risk Assessment] | |||
Revision as of 20:46, 25 June 2024
Year of publication: 2024
Access: Open
Link: https://zenodo.org/records/12532855, https://doi.org/10.5281/zenodo.12532855
Organisation(s) / Author(s): John Hillier, Loughborough Univeristy, UK
Description Summary of activity: A dice-rolling game, simulating 6 causes of loss (i.e. possible hazards) and how dependency affects the chance of loss exceeding a threshold.
Why is the training important: In short, because diversification is the basis of all (re)insurance, and correlation (a.k.a. dependency) destroys diversification. So, it’s fundamental. If we get dependency wrong, we mis-estimate risk, mis-price risk etc ….
Technical considerations
None
Keywords
Insurance, Risk correlation, Natural hazard Dependency, Co-occurring hazards, Compound risk
Back to Multi-hazard Risk Assessment
[[Category|Multi-hazard Risk Assessment]