Terms and selection criteria Selection criteria sigma has been publishin tables listin ma or losses since 1†0ˆ hreshol‚s ith respect to casualties – the number of ‚ea‚… missin… severely in ure‚… an‚ homeless – also ma€e it possible to tabulate events in reions here the insurance penetration is belo averaeˆ hreshol‚s for insure‚ losses an‚ ˜or the 2015 reportin year… the loer loss threshol‚s ere set as follos: casualties in 2015 “nsure‚ losses šclaims›: Šaritime ‚isasters Ž‘’ 1†ˆ million Aviation Ž‘’ †ˆ million ™ther losses Ž‘’ „‡ˆ‡ million or otal losses: Ž‘’ †ˆ million or Casualties: ’ea‚ or missin 20 “n ure‚ 50 žomeless 2 000 ™dŽustment or inlation˜ changes to published data˜ inormation ƒosses are ‚etermine‚ usin year‰en‚ sigma converts all losses for the occurrence year not iven in Ž‘’ into Ž‘’ usin exchane rates an‚ are then a‚ uste‚ for the en‚‰of‰year exchane rateˆ o a‚ ust for inflation… these Ž‘’ values are inflationˆ extrapolate‚ usin the Ž‘ consumer price in‚ex to ive current š2015› valuesˆ his can be illustrate‚ by examinin the insure‚ property losses arisin from the floo‚s hich occurre‚ in the ŽŸ beteen 2† ™ctober an‚ 10 November 2000: “nsure‚ loss at 2000 prices: Ž‘’ 1 0„5ˆmillion “nsure‚ loss at 2015 prices: Ž‘’ 1 „‡ˆ‡ million Alternatively… ere one to a‚ ust the losses in the oriinal currency š–”•› for inflation an‚ then convert them to Ž‘’ usin the current exchane rate… one oul‚ en‚ up ith an insure‚ loss at 2015 prices of Ž‘’ 1 „2 million… 1§ less than ith the stan‚ar‚ sigma metho‚ˆ he reason for the ‚ifference is that the value of the –”• ‚ecline‚ by almost 1§ aainst the Ž‘’ in the perio‚ 2000–2015ˆ he ‚ifference in inflation beteen the Ž‘ šˆ6§› an‚ the ŽŸ šˆ6§› over the same perio‚ as neliibleˆ Figure — Floods Ÿ …•change rate S inlation Alternative metho‚s of a‚ ustin for 2† ™ctober–10 November 2000 –”•m Ž‘’/–”• Ž‘’m Ž‘’m inflation… by comparison ™riinal loss 00ˆ0 1ˆ„†„ 10„5ˆ 10„5ˆ ƒevel of consumer price in‚ex 2000 †ˆ1 100ˆ0 ƒevel of consumer price in‚ex 2015 12‡ˆ0 1ˆ6 “nflation factor 1ˆ6 1ˆ6 A‚ uste‚ for inflation to 2015 †6ˆ2 1ˆ„‡2 1„2ˆ„ 1„‡ˆ‡ Comparison ††§ 100§ ‘ource: ‘iss e Economic esearch ¦ Consultinˆ „„ Swiss Re sigma No 1/2016