Designing a Social Insurance Relocation Program for the Fictitious Country Storslysia
Open Access
Author:
Painter, Brady
Area of Honors:
Actuarial Science
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Zhongyi Yuan, Thesis Supervisor Amanda W Hammell, Thesis Honors Advisor
Keywords:
Actuarial Science Society of Actuaries Storslysia Climate Catastrophe Social Insurance Relocation
Abstract:
This paper strives to design a relocation social insurance program for the fictitious country Storslysia. The program hopes to reduce Storlysia’s property damage costs by incentivizing citizens to move out of high climate risk regions to low climate risk regions. As a byproduct of reduced property damage throughout the country, Storslysia should see an increase in economic standards and the overall well-being of their citizens.
This research case comes from the Society of Actuaries’ 2023 Student Research Case Competition. The guidelines of the case required students to include an overview, program design, pricing/cost projections, risk mitigation strategies, assumptions, and data limitations. The case also supplied limited demographic-economic information on Storslysia prior property damage statistics dating back to 1960. Using advanced statistical analysis and modeling strategies, the risk level of each of the six regions throughout the country was determined to allow for correct program design goals. Altogether, the final program supplies incentive for both voluntary and involuntary movement of citizens from high-risk regions to low-risk regions.
