Probabilistic Seismic Risk Assessment in Manizales, Colombia: Quantifying Losses for Insurance Purposes

Abstract

A fully probabilistic seismic risk assessment was developed in Manizales, Colombia, considering assets of different types. The first type includes elements that are part of the water and sewage network, and the second type includes public and private buildings. This assessment required the development of a probabilistic seismic hazard analysis that accounts for the dynamic soil response, assembling high resolution exposure databases, and the development of damage models for different types of elements. The economic appraisal of the exposed assets was developed together with specialists of the water utilities company of Manizales and the city administration. The risk assessment was performed using several Comprehensive Approach to Probabilistic Risk Assessment modules as well as the R-System, obtaining results in terms of traditional metrics such as loss exceedance curve, average annual loss, and probable maximum loss. For the case of pipelines, repair rates were also estimated. The results for the water and sewage network were used in activities related to the expansion and maintenance strategies, as well as for the exploration of financial retention and transfer alternatives using insurance schemes based on technical, probabilistic, and prospective damage and loss estimations. In the case of the buildings, the results were used in the update of the technical premium values of the existing collective insurance scheme.

Keywords

CAPRA / Earthquake insurance / Manizales (Colombia) / Probabilistic seismic risk assessment / Risk retention and transfer

References

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