Mathematical Models for Insurance Strategies

“Human actions will inevitably lead to consequences.” The reckless exploitation of nature by humans has resulted in increasingly severe weather events, which have caused numerous casualties and damage to property. Such a tension between interests and risks has given rise to a dilemma for the insurance industry, challenging its decision-making on whether to provide coverage or not. This report mainly aims to develop models that assist the insurance sector, policyholders, and the community in safeguarding valuable architectural heritage. For this end, three structured models have been formulated: the Extreme-Weather Insurance Model (EWIM), the Estate Resilience Model (ERM), and the Architecture Preservation and Protection Model (APPM), which are based on mathematical methods such as entropy weighting, multiple linear regression, etc. The results indicate that the model can solve the contradiction between disasters and insurance.