The Effectiveness of a Social Insurance Program for catastrophic disasters and its financial implications
Open Access
Author:
Asprer, Jared
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:
displacement actuarial
Abstract:
Natural disasters and catastrophes have been increasing over time as climate change has been showing its effects to the world. With that comes an increase in displaced people, poor living conditions, as well as financial distress not only for the individual, but for the affected countries. Attempts to solve this problem have been tried after disasters such as Hurricane Katrina in the United States as well as in foreign countries such as the Philippines and Haiti. Actions in the United States showed some success, but in the less fortunate countries such as Haiti, plans were executed poorly which led to poor infrastructure for temporary housing as well as people in financial distress. In order to combat this problem, a simulation was made by the SOA to challenge actuarial students and their abilities to solve complex problems. The simulation included a fake country called Storslysia along with some data to analyze, make models from, and form conclusions. Other information such as Storslysia’s demographic, financial, and geographic details were given for a more informed decision. This paper aims to find a way to decrease Storslysia’s temporary housing costs and ensure that this program is successful in both the short and long term. The target number is at least below 10% of GDP but overall, the goal is to decrease the costs from the baseline costs based on historical data.