Revealing building vulnerability to windstorms through an insurance claim payout prediction model: a case study in South Korea

Abstract

The aim of this study is to develop regional vulnerability functions of buildings to estimate the loss from windstorms. Windstorms trigger critical financial damage to assets around the world. Insurance companies assess the financial risk of their exposures by employing windstorm risk assessment models. The vulnerability function in the risk assessment model is generally based on the analysis of actual damage records from insurance companies. However, the absence of detailed loss data is an obstacle to developing vulnerability functions. To fill this gap, this study provides a methodology to develop a function using an insurance company's loss data associated with windstorms. Vulnerability functions are generated based on the wind speed, line of business, and value of the property. The findings and methodology of this study offer a practical way of reflecting the real economic losses and regional vulnerability of buildings and help to develop vulnerability functions for insurance companies and emergency planners.