On Losses: Frequency and Severity of Catastrophic Events
Reinsurance
The insurance industry, and society at large, is concerned with the frequency and severity of catastrophic events. Severity is often measured in terms of financial loss but what do we mean when we talk about losses and how are the different types of losses related? This paper seeks to serve as a primer on this topic. It should be noted from the outset that this paper will just concentrate on natural catastrophe losses.