A Study of Property Insurance in Extreme Weather Based on EWM-TOPSIS Modeling

Abstract

In recent years, increasing global climate change has led to a rise in the frequency of natural disasters, posing a threat to the safety of human life and property. This trend has put tremendous pressure on insurance companies, so we conducted a related study to more accurately assess the impact of natural disasters on them. We developed two models: the catastrophe-based insolvency probability model and the EWM-TOPSIS model. In the bankruptcy probability model based on the catastrophe model, we introduced the cumulative claim amount to derive the total loss and calculated the bankruptcy probability. And in the EWM-TOPSIS model, we chose seven official indicators to analyze and introduced insurance factors to construct the model. Through our study, we found that insurance factors play an important role in real estate decision-making and have a significant impact on the comprehensive evaluation of the region. In summary, our study provides insights and useful suggestions for understanding the impact of natural disasters on insurance companies.