Insurance Brokerage Company uses a computer-based method of estimating the losses its clients will suffer if a severe storm or earthquake occurs.This method of estimating losses is called
A)capital budgeting.
B)securitization of risk.
C)risk mapping.
D)catastrophe modeling.

Question

Quizplus · Accepted Answer

Catastrophe modeling is a computer-based method used by insurance companies to estimate the losses their clients might suffer in worst-case scenarios like severe storms, earthquakes, or other natural disasters.

Insurance Brokerage Company Uses a Computer-Based Method of Estimating the Losses