SAFEGUARDING STORSLYSIA: A NATIONWIDE SOCIAL INSURANCE PROGRAM FOR CLIMATE-RELATED DISPLACEMENT
Open Access
Author:
Chen, Xinyi
Area of Honors:
Actuarial Science
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Amanda W Hammell, Thesis Supervisor Amanda W Hammell, Thesis Honors Advisor Zhongyi Yuan, Faculty Reader
Keywords:
Actuarial Science Social Insurance Climate-Related Displacement
Abstract:
This thesis analyzes the effect of severe weather events on Storslysia and examines how
the nation can reduce its exposure by implementing a relocation social insurance program. Our
program seeks to reduce the total economic and psychological damage caused by natural
disasters in Storslysia over the next 100 years with great certainty. We plan to provide financial
relief toward displacement costs for victims of involuntary relocation and to offer benefits to
citizens that choose to voluntarily relocate out of higher-risk regions to lower-risk regions. This
will be done through the use of annuities and lump sum payments which will be handled on a per
claim basis.
Since many of the lower-risk regions maintain higher economic status, the benefits to
voluntary relocators will cover economic pressures and reduce relocation costs. These benefits
will vary depending on where the relocators are from and where they are moving to. The same
goes for involuntary relocators, however, they will also receive a standard lump sum amount to
help with physical and phycological damages from the weather event as well. Structuring the
benefits in this way will shift the population in a safe manner while reducing the current costs
sustained from a severe weather event.
