catastrophe-modeling

Catastrophe modeling project, presented to Professor Havens (Math department) at UMass Amherst 2022 Catastrophe modeling is an important tool for insurance companies because without these models, insurers would be more likely to go bankrupt since they would not be able to accurately estimate amounts of money needed based on the damages from past disasters. The inability to do this would interrupt and hold off on payments back to buyers of the insurance firm. Despite its shortcomings and the limitations we faced in the data sets we were provided with, we were still able to develop a rudimentary catastrophe model that estimated the amount of damage caused by a tornado by looking at the strength of the tornado and the path size and basing it off of tornadoes that occurred in the past. Insurance companies that have access to more specific details and can account for location and property data are able to more effectively predict these losses caused by natural disasters. In doing so, these companies are able to minimize the losses faced by the insurance company and allows them to properly insure their costumers.