The frequent occurrence of extreme weather events has brought serious challenges to the world, and the insurance industry is facing a huge crisis. To determine whether the insurance industry should underwrite in areas with increasing extreme weather events, this paper establishes a profit prediction model based on the Cramer-Lundberg model and ARMA. Then, 7 extreme climate events, such as floods and wildfires, are selected from the collected data as secondary indicators, each divided into 5 indicators such as frequency and total loss. The AHP-EWM-CVM combination method is used to calculate the weights of each indicator, and a formula for the Extreme Weather Risk Index (EWRI) is constructed. All regions are classified into three classes severe, moderate, and slight risks, and a property insurance underwriting evaluation model is constructed. Then, the model is applied in two countries, China and Germany, to obtain the profit situation of the insurance industry in the next ten years, with EWRI of 82.8238 and 88.3605, respectively.

Minqi Lv, Jiahui Yin. A Study of the Property Insurance Industry Based on the Property Insurance Underwriting Assessment (PIUA) Model. International Journal of New Developments in Engineering and Society (2024) Vol.8, Issue 2: 44-50. https://doi.org/10.25236/IJNDES.2024.080207.

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