Civil Engineering Reference
In-Depth Information
Using the available post-earthquake damage data, each element of a
DPM can be obtained from
(
)
NI
NI
DS
,
(
) =
k
PI
DS
,
[29.1]
k
()
k
as the probability that damage state DS is observed in k -type buildings
when exposed to an earthquake of intensity I . In this equation N k (DS, I )
stands for the number of k -type buildings in damage state DS, whereas
N k ( I ) stands for the total number of k-type buildings under earthquake
intensity I . The sum of the probabilities in each column of a DPM equals
1.0. The information contained in the damage probability matrix and in the
damage ratios can be combined as the mean damage ratio, MDR k ( I ), which
is expressed as follows:
() =
(
) ×
MDR
I
P
DS
,
I
CDR DS
[29.2]
k
k
DS
where CDR DS
=
central damage ratio corresponding to the damage state,
DS.
29.2.3 Pure risk premium
The expected annual damage ratio (EADR k ) is used as a measure of the
magnitude of earthquake damage to a k -type of structure built in a certain
seismic zone and is defi ned as:
() ×
EADR
=
MDR
I
SH
[29.3]
k
k
I
I
where MDR k ( I )
average damage ratio for the k -type of structures sub-
jected to an earthquake of intensity I , and SH I
=
annual probability of an
earthquake of intensity I occurring at the site. EADR k is a unitless quantity
and can be interpreted as the pure insurance premium for a unit property
replacement cost.
After calculating EADR k , the pure risk premium (PRP k ) for the portfolio
of contracts is computed based on the insured value of the building (INSV)
under consideration from the following relationship:
=
PRP
=
EADR
×
INSV
[29.4]
k
k
29.2.4 Commercially priced earthquake
insurance premium
The commercially priced earthquake insurance premium (CPP k ) that will
be charged by an insurance company for the k -type of structure is found
by increasing the PRP k by some margin as follows:
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