erms an‚ selection criteria Natural catastrophes A natural catastrophe is cause‚ by he term “natural catastrophe” refers to an event cause‚ by natural forcesˆ ‘uch an natural forcesˆ event enerally results in a lare number of in‚ivi‚ual losses involvin many insurance policiesˆ he scale of the losses resultin from a catastrophe ‚epen‚s not only on the severity of the natural forces concerne‚… but also on man‰ma‚e factors… such as buil‚in ‚esin or the efficiency of ‚isaster control in the afflicte‚ reionˆ “n this sigma stu‚y… natural catastrophes are sub‚ivi‚e‚ into the folloin cateories: floo‚s… storms… earthŒua€es… ‚rouhts/forest fires/heat aves… col‚ aves/frost… hail… tsunamis… an‚ other natural catastrophesˆ “an-made disasters A man‰ma‚e or technical ‚isaster is his stu‚y cateorises ma or events associate‚ ith human activities as “man‰ma‚e” triere‚ by human activitiesˆ or “technical” ‚isastersˆ –enerally… a lare ob ect in a very limite‚ space is affecte‚… hich is covere‚ by a small number of insurance policiesˆ ¨ar… civil ar… an‚ ar‰li€e events are exclu‚e‚ˆ sigma sub‚ivi‚es man‰ma‚e ‚isasters into the folloin cateories: ma or fires an‚ explosions… aviation an‚ space ‚isasters… shippin ‚isasters… rail ‚isasters… minin acci‚ents… collapse of buil‚ins/bri‚es… an‚ miscellaneous šinclu‚in terrorism›ˆ “n ables ‡ an‚ † špaes „1–„2›… all ma or natural catastrophes an‚ man‰ma‚e ‚isasters an‚ the associate‚ losses are liste‚ chronoloicallyˆ Total losses ƒosses ‚ue to property ‚amae an‚ ˜or the purposes of the present sigma stu‚y… total losses are all the financial losses business interruption that are ‚irectly ‚irectly attributable to a ma or event… ie ‚amae to buil‚ins… infrastructure… vehicles attributable to ma or events are inclu‚e‚ etcˆ he term also inclu‚es losses ‚ue to business interruption as a ‚irect in this stu‚yˆ conseŒuence of the property ‚amaeˆ “nsure‚ losses are ross of any reinsurance… be it provi‚e‚ by commercial or overnment schemesˆ A fiure i‚entifie‚ as “total ‚amae” or “economic loss” inclu‚es all ‚amae… insure‚ an‚ uninsure‚ˆ otal loss fiures ‚o not inclu‚e in‚irect financial losses – ie loss of earnins by suppliers ‚ue to ‚isable‚ businesses… estimate‚ shortfalls in –’• an‚ non‰economic losses… such as loss of reputation or impaire‚ Œuality of lifeˆ he amount of the total losses is a –enerally… total šor economic› losses are estimate‚ an‚ communicate‚ in very eneral in‚ication onlyˆ ‚ifferent aysˆ As a result… they are not ‚irectly comparable an‚ shoul‚ be seen only as an in‚ication of the eneral or‚er of manitu‚eˆ „nsured losses he term “losses” refer to insure‚ losses… “ƒosses” refer to all insure‚ losses except liabilityˆ ƒeavin asi‚e liability losses… on but ‚o not inclu‚e liabilityˆ one han‚… allos a relatively sift assessment of the insurance year³ on the other han‚… hoever… it ten‚s to un‚erstate the cost of man‰ma‚e ‚isastersˆ ƒife insurance losses are also not inclu‚e‚ˆ “”I flood damage in t€e Œ… N˜“• floo‚ ‚amae in the Ž‘ is inclu‚e‚ˆ he sigma catastrophe ‚atabase also inclu‚es floo‚ ‚amae covere‚ by the National ˜loo‚ “nsurance •roram šN˜“•› in the Ž‘… provi‚e‚ that it fulfils the sigma selection criteriaˆ Swiss Re sigma No 1/2016 „