DOI QR코드

DOI QR Code

A Study on the Rate Making Method Based on Insurable Value and Loss Cost of Each Zone(Inundation Depth)

Zone(침수심)별 보험가입목적물의 보험가액과 손해액을 이용한 보험요율산정 방안

  • Lee, Heechun (Department of Regional Infrastructure Engineering, Kangwon National University) ;
  • Lim, Hyuntaek (Department of Regional Infrastructure Engineering, Kangwon National University) ;
  • Kim, Donggyun (Department of Regional Infrastructure Engineering, Kangwon National University) ;
  • Kim, Yongtae (Dankook University) ;
  • Lee, Junseok (LX Spatial Information Research Institute) ;
  • Kim, Yongseong (Department of Regional Infrastructure Engineering, Kangwon National University)
  • 이희춘 (강원대학교 지역건설공학과) ;
  • 임현택 (강원대학교 지역건설공학과) ;
  • 김동균 (강원대학교 지역건설공학과) ;
  • 김용태 (단국대학교) ;
  • 이준석 (한국국토정보공사 공간정보연구원) ;
  • 김용성 (강원대학교 지역건설공학과)
  • Received : 2015.08.19
  • Accepted : 2015.10.07
  • Published : 2015.12.31

Abstract

Generally, the rate making is made by the fundamental principle that it should be fairly differentiated in accordance with risk magnitude of insured objects. But the natural insurance is currently rated by city, country and district, which are recognized as rating units and it does not provide any reasonable discriminatory based on risk magnitude. Therefore, only those who possess the high-risked objects of insurance are strongly likely to be insured and it may also cause the problem of adverse-selection. To solve this problem, the single rate of current city, county and district is specified by six zones, depending on the size of inundation depth, as the homogeneous risk. It then suggests another way of calculating the rate making by using insurable value and loss cost of the zonal object of insurance. Then this study applied this method into calculating the zonal rates of Buk-Gu of Ulsan metropolitan city, and so on. Through making a comparison single rate with zonal rate, we confirmed the actual applicability of using this study.

Acknowledgement

Grant : 풍수해 위험도가 반영된 개별 보험요율 산정 및 지도 개발

Supported by : 국민안전처

References

  1. CAS(Casualty Actuarial Society) (1985) Proceeding of the Casualty Actuarial Society.
  2. CAS(Casualty Actuarial Society) (1990) Foundations of Casualty Actuarial Science, pp. 36-44.
  3. GAO(United States Government Accountability Office) (1994) Flood Insurance.
  4. GAO(United States Government Accountability Office) (2008) Flood Insurance(FEMA'S Rate-Setting Process Warrants Attention), Report to the Ranking Member, Committee on Banking, Housing, and Urban Affairs, U.S., Senate.
  5. GAO(United States Government Accountability Office) (2013) Flood Insurance(Implications of Changing Coverage Limits and Expanding Coverage), Report to Congressional Committees.
  6. George E. Rejda (1986) Principles of Insurance. Scott, Foresman and Company, pp. 560-565.
  7. Hossack I.B., Pollard. J.H., and Zehnwirth. B. (1999) Introductory statistics with applications in general insurance, pp. 156-162.
  8. http://ec.europa.eu/environment/water/flood_risk/flood_atlas/index.htm.
  9. Jos van Alphen and Ron Passchier. Atlas of Flood Maps(Examples from 19 European countries), USA and Japan, pp. 163-178.
  10. Lee, H.C., Park, S.Y., Lee, C.H., and Kim, Y.S. (2014) The Point at Issue and Improvement of Natural Disaster Insurance Rate System: case study, Journal of Korean Society of Hazard Mitigation, Vol. 14, No. 1, pp. 223-231 (in Korean). https://doi.org/10.9798/KOSHAM.2014.14.1.223
  11. Lee, Y.J., Lee, S.I. (2008) A Research on Process of Estimation about Frequency and Loss of Risk by distribution of Probability, Journal of Information Technology Applications & Management, The Korea Society of Information Technology Applications, No. 15, Vol. 2, pp. 67-82 (in Korean).
  12. M. Semih Yucemen (2007) Turkish Catastrophe Insurance Pool(TCIP): Past experience and Recommendation, in VIII Conference on Insurance and Supervision in Latin America.
  13. Ministry of Government Administration and Home Affairs.Korea Insurance Development Institute (1999) Study on the Implementation of the Flood and Storm Insurance Program (in Korean).
  14. Ministry of Land, Infrastructure, Transport and Tourism, Japan (2006) Method of Mean Damage Ratio Calculation Based on Dwelling Houses by Zones.
  15. Ministry of Public Safety and Security (2014) Paid Losses by Year (in Korean).
  16. Ministry of Public Safety and Security (2014) A Development of Insurance Rate Map Based on Natural Disaster Risk, pp. 3-43-3-55. (in Korean).
  17. Ministry of Public Safety and Security (2015) Disaster Annual Report (in Korean).
  18. Ministry of Public Safety and Security (2015) Insurance Rate Making and Mapping based on Natural Disaster Risk (in Korean).
  19. Ministry of Public Safety and Security (2015) Storm and Flood Insurance Practice (in Korean).
  20. Munich Re (1993) Die Versicherung weiterer Elementargefahren.
  21. National Emergency Management Agency.Korea Insurance Development Institute (2006) A Study on Demo Business Implementation of Storm and Flood Damage Insurance for Rate Making. pp. 155-156.
  22. National Emergency Management Agency (2008) A Study on Active Development of Wind and Flood Insurance in linked with a Comprehensive Disaster Mitigation Measures (in Korean).
  23. National Emergency Management Agency (2008) A Study on Storm and Flood Damage Insurance Management Mapping (in Korean).
  24. National Emergency Management Agency (2009) Development of Risk Assessment Technique for Strong Wind and Heavy Snowfall (in Korean).
  25. National Emergency Management Agency (2013) Storm and Flood Damage Insurance practices (in Korean).
  26. Okmyung Bin, Jamie Brown Kruse, and Craig E. Landry (2008) Flood Hazards, Insurance Rates, and Amenities: Evidence from the Coastal Housing Markets, The Journal of Risk and Insurance, Vol. 75, No. 1, pp. 63-82. https://doi.org/10.1111/j.1539-6975.2007.00248.x
  27. Robert L. Brown (1993) Introduction to Ratemaking and Loss Reserving for Property and Casualty Insurance. pp. 77-79.
  28. Robert J. Finger (2001) Foundations of Casualty Actuarial Science( Volume I), Casualty Actuarial Society, pp. 287-308.
  29. Robert I. Mehr (1983) Fundamentals of Insurance, D. Irwin Inc., pp. 452.
  30. Spatial Information Research Institute (2015) Area and Component Ratio by Zone.
  31. Spatial Information Research Institute (2015) Dwelling Houses by Gross Area and Zone(in Buk-gu of Ulsan Metropolitan City).
  32. Swiss Re (2003). Natural Catastrophes and Reinsurance.
  33. William C. Aycock, and Young Wang (2004) Comparison of the New Digital Flood Insurance Rate Map(DFIRM) with the existing FIRM. https://doi.org/10.1353/sgo.2004.0018

Cited by

  1. Development of the Storm and Flood Insurance Management System Mounted to Analysis Algorithm Module of Premium Rate vol.18, pp.2, 2018, https://doi.org/10.9798/KOSHAM.2018.18.2.105