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Karen Clark Case Study

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Thanks impart to Karen Clark who introduced a new way of dealing with catastrophic event, people were able to make close logical estimation of the magnitude of losses faced by insurers. Most notably, Clark was able to predict loses by “gathering very long-term historical data on hurricanes [and] combining those record with new data on property exposures [such as property] zip code, engineering reports, local building codes (p.6)” to model loses and profitability of catastrophic event. By doing so, she was able to lay a fundamental foundation of catastrophic risk modeling that various financial and insurance institutions heavily rely up on to some degree to this day.

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