Know your correlation: An interactive game: Difference between revisions
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{{MHRA | |||
|Publication Year=2024 | |||
|Access=Open | |||
|Link=https://zenodo.org/records/12532855, https://doi.org/10.5281/zenodo.12532855 | |||
|Organisation(s)/Authors=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 …. | |||
|Key Words=Insurance, Risk correlation, Natural hazard Dependency, Co-occurring hazards, Compound risk | |||
}} | |||
<div style="text-align:justify"> | <div style="text-align:justify"> | ||
'''Year of publication''': 2024 | '''Year of publication''': 2024 | ||
Revision as of 16:59, 25 March 2025
Publication Year: 2024
Access: Open
Link: https://zenodo.org/records/12532855, https://doi.org/10.5281/zenodo.12532855
Author(s):
Organisation(s)/Authors:
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:
Key Words:
Insurance, Risk correlation, Natural hazard Dependency, Co-occurring hazards, Compound risk
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