2019_Mathematical Model of Flood Insurance: An Optimization Approach
| Format: | General Document |
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| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2019-07-22 |
| format | General Document |
| id | 16205 |
| institution | UniSZA |
| originalfilename | MATHEMATICAL MODEL OF. FLOOD INSURANCE_ AN OPTIMIZATION APPROACH.pdf |
| person | Pramono Sidi |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16205 |
| sourcemedia | Server storage Scanned document |
| spelling | 16205 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16205 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Informatics & Computing English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access UNIVERSITI SULTAN ZAINAL ABIDIN SAMBox 2.4.24; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 Optimization 2019-07-22 196 MATHEMATICAL MODEL OF. FLOOD INSURANCE_ AN OPTIMIZATION APPROACH.pdf Flood insurance—Mathematical models Flood Insurance Mathematical Modeling Pramono Sidi 2019_Mathematical Model of Flood Insurance: An Optimization Approach The Citarum Basin has fiequently happen flooded and caused many losses for societies that are living surrounding this area. As a result, the govemment and several social institutions provided some ofthe compensation types for societies when their houses are damaged such as the refuges, foods, medicines and building equipment. However, the amount of compensation received by the people cannot fully coverage their losses. Thus, the people should find the best solution for an altemative to solve their problem about these losses. One of the solutions that can solve this issue among society is insurance. The insurance can minimize losses due to random events caused by floods but the value of compensation to cover these losses is still not optimal in terms of the sum of money coverage for repairing the buildings were damaged. This study uses a secondary data that was collected from Regional Environmental Supervisory Agency (Badan Pengawas Lingkungan Hidup Daerah), Bandung, Indonesia, and is analyzed using the probability analysis namely the logistic regression, which is estimated via genetic algorithm approach. Further, to determine the optimal value offlood insurance premiums, this study has adopted some approaches including the value of expectation, the value of premium variance, the value of standard deviation, and premium models such as Esscher method, proportional hazard, Wang's model, Swiss model, and Dutch model. Meanwhile, the analysis of optimization to compensate the society's costs for repairing their damaged buildings uses two approaches namely Integrated Catastrophe Risk Model (ICRM) with the linear program, and ICRM with the Cenetic Algorithm (GA). The results of the analysis shows that the factors which can increase the vulnerability offloods surrounding the river of Citarum Basin is the changes of the use of protected areas, the soil surface, the rate of sedimentation, the pile of garbage in the river inhibiting the flow of water, and the growth of,population density around this area. In addition, in the calculation of flood insurance premiums, this study found that the larger initial reserves the bigger ofthe quotas on reinsurance during the previous period of the disaster could increase the income of insurance company that eamed from the palrrnent of prernium. All of these strategies are expected can cover immediately the financial losses olsocieties that caused by the floods. In the optimization case between the linear program and the GA's method, this study found that the ICRM with the GA shows an ability to solve a complex system of premium distribution. Besides that, ICRM with GA's does not only give the best solution compared to ICRM with the linear program that offers a nonunique solution or the best solutions. Therefore, for a complex and dynamic problem, the ICRM with the GA's is very relevant because of its ability to produce a robust and versatile combination of the solution. Dissertations, Academic Thesis |
| spellingShingle | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| state | Terengganu |
| subject | Flood insurance—Mathematical models Dissertations, Academic |
| summary | The Citarum Basin has fiequently happen flooded and caused many losses for societies that are living surrounding this area. As a result, the govemment and several social institutions provided some ofthe compensation types for societies when their houses are damaged such as the refuges, foods, medicines and building equipment. However, the amount of compensation received by the people cannot fully coverage their losses. Thus, the people should find the best solution for an altemative to solve their problem about these losses. One of the solutions that can solve this issue among society is insurance. The insurance can minimize losses due to random events caused by floods but the value of compensation to cover these losses is still not optimal in terms of the sum of money coverage for repairing the buildings were damaged. This study uses a secondary data that was collected from Regional Environmental Supervisory Agency (Badan Pengawas Lingkungan Hidup Daerah), Bandung, Indonesia, and is analyzed using the probability analysis namely the logistic regression, which is estimated via genetic algorithm approach. Further, to determine the optimal value offlood insurance premiums, this study has adopted some approaches including the value of expectation, the value of premium variance, the value of standard deviation, and premium models such as Esscher method, proportional hazard, Wang's model, Swiss model, and Dutch model. Meanwhile, the analysis of optimization to compensate the society's costs for repairing their damaged buildings uses two approaches namely Integrated Catastrophe Risk Model (ICRM) with the linear program, and ICRM with the Cenetic Algorithm (GA). The results of the analysis shows that the factors which can increase the vulnerability offloods surrounding the river of Citarum Basin is the changes of the use of protected areas, the soil surface, the rate of sedimentation, the pile of garbage in the river inhibiting the flow of water, and the growth of,population density around this area. In addition, in the calculation of flood insurance premiums, this study found that the larger initial reserves the bigger ofthe quotas on reinsurance during the previous period of the disaster could increase the income of insurance company that eamed from the palrrnent of prernium. All of these strategies are expected can cover immediately the financial losses olsocieties that caused by the floods. In the optimization case between the linear program and the GA's method, this study found that the ICRM with the GA shows an ability to solve a complex system of premium distribution. Besides that, ICRM with GA's does not only give the best solution compared to ICRM with the linear program that offers a nonunique solution or the best solutions. Therefore, for a complex and dynamic problem, the ICRM with the GA's is very relevant because of its ability to produce a robust and versatile combination of the solution. |
| title | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| title_full | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| title_fullStr | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| title_full_unstemmed | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| title_short | 2019_Mathematical Model of Flood Insurance: An Optimization Approach |
| title_sort | 2019_mathematical model of flood insurance: an optimization approach |