Study for identification and contribution of winter extratropical cyclone claims in the Home Insurance portfolio

Catastrophe modeling is becoming a standard practice in the insurance industry. It is very important for insurers to try to predict and protect themselves against such events as it can endanger their financial position. One natural catastrophe event that is common to model according to Verisk (2022) is the wind storm extratropical cyclone, which is relatively common in northern Europe during the winter months. To build a model from scratch, it is crucial to have credible and quality safe data to ensure that the model is based on a solid foundation. That is the main focus of this report. A thorough description of the process of identifying historical extratropical cyclone claims in the scope of a home insur- ance in the Irish market is provided. An analysis of the behaviour of the collected data is performed to verify that it originated from a catastrophe event. The analysis is conducted on several levels; storm arrival, storm length, claim frequency and claims severity, and its outcome confirms with certainty that the collected data is indeed catastrophe data.