1. Insurance loss model vs. meteorological loss index – how comparable are their loss estimates for European windstorms?
- Author
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Moemken, Julia, Alifdini, Inovasita, Ramos, Alexandre M., Georgiadis, Alexandros, Brocklehurst, Aidan, Braun, Lukas, and Pinto, Joaquim G.
- Subjects
STORMS ,ATMOSPHERIC models ,INSURANCE companies ,SPATIAL resolution ,REGIONAL differences ,WINDSTORMS - Abstract
Windstorms affecting Europe are among the natural hazards with the largest socio-economic impacts. Therefore, many sectors like society, the economy, or the insurance industry are highly interested in reliable information on associated impacts and losses. In this study, we compare – for the first time – estimated windstorm losses using a simplified meteorological loss index (LI) with losses obtained from a complex insurance loss (catastrophe) model, namely the European Windstorm Model of Aon Impact Forecasting. To test the sensitivity of LI to different meteorological input data, we furthermore contrast LI based on the reanalysis dataset ERA5 and its predecessor ERA-Interim. We focus on similarities and differences between the datasets in terms of loss values and storm rank for specific historical storm events in the common reanalysis period across 11 European countries. Our results reveal higher LI values for ERA5 than for ERA-Interim for all of Europe (by roughly a factor of 10), coming mostly from the higher spatial resolution in ERA5. The storm ranking is comparable for western and central European countries for both reanalyses, confirmed by high correlation values between 0.6 and 0.89. Compared to the Aon Impact Forecasting model, LI ERA5 shows comparable storm ranks, with correlation values ranging between 0.45 and 0.8. In terms of normalized loss, LI exhibits overall lower values and smaller regional differences. Compared to the market perspective represented by the insurance loss model, LI seems to have particular difficulty in distinguishing between high-impact events at the tail of the wind gust distribution and moderate-impact events. Thus, the loss distribution in LI is likely not steep enough, and the tail is probably underestimated. Nevertheless, it is an effective index that is suitable for estimating the impacts of storm events and ranking storm events, precisely because of its simplicity. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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