Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes
Volcanic eruptions are rare but potentially catastrophic phenomena, affecting societies and economies through different pathways. The 2010 Eyjafjallajökull eruption in Iceland, a medium-sized ash-fall-producing eruption, caused losses in the range of billions of dollars, mainly to the aviation and t...
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ftdoajarticles:oai:doaj.org/article:568481087a754d1294063939b4310b74 2023-05-15T16:09:37+02:00 Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes D. Oramas-Dorta G. Tirabassi G. Franco C. Magill 2021-01-01T00:00:00Z https://doi.org/10.5194/nhess-21-99-2021 https://doaj.org/article/568481087a754d1294063939b4310b74 EN eng Copernicus Publications https://nhess.copernicus.org/articles/21/99/2021/nhess-21-99-2021.pdf https://doaj.org/toc/1561-8633 https://doaj.org/toc/1684-9981 doi:10.5194/nhess-21-99-2021 1561-8633 1684-9981 https://doaj.org/article/568481087a754d1294063939b4310b74 Natural Hazards and Earth System Sciences, Vol 21, Pp 99-113 (2021) Environmental technology. Sanitary engineering TD1-1066 Geography. Anthropology. Recreation G Environmental sciences GE1-350 Geology QE1-996.5 article 2021 ftdoajarticles https://doi.org/10.5194/nhess-21-99-2021 2022-12-31T05:24:42Z Volcanic eruptions are rare but potentially catastrophic phenomena, affecting societies and economies through different pathways. The 2010 Eyjafjallajökull eruption in Iceland, a medium-sized ash-fall-producing eruption, caused losses in the range of billions of dollars, mainly to the aviation and tourism industries. Financial risk transfer mechanisms such as insurance are used by individuals, companies, governments, etc., to protect themselves from losses associated with natural catastrophes. In this work, we conceptualize and design a parametric risk transfer mechanism to offset losses to building structures arising from large, ash-fall-producing volcanic eruptions. Such a transfer mechanism relies on the objective measurement of physical characteristics of volcanic eruptions that are correlated with the size of resulting losses (in this case, height of the eruptive column and predominant direction of ash dispersal) in order to pre-determine payments to the risk cedent concerned. We apply this risk transfer mechanism to the case of Mount Fuji in Japan by considering a potential risk cedent such as a regional government interested in offsetting losses to dwellings in the heavily populated prefectures of Tokyo and Kanagawa. The simplicity in determining eruptive column height and ash fall dispersal direction makes this design suitable for extrapolation to other volcanic settings worldwide where significant ash-fall-producing eruptions may occur, provided these parameters are reported by an official, reputable agency and a suitable loss model is available for the volcanoes of interest. Article in Journal/Newspaper Eyjafjallajökull Iceland Directory of Open Access Journals: DOAJ Articles Natural Hazards and Earth System Sciences 21 1 99 113 |
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Open Polar |
collection |
Directory of Open Access Journals: DOAJ Articles |
op_collection_id |
ftdoajarticles |
language |
English |
topic |
Environmental technology. Sanitary engineering TD1-1066 Geography. Anthropology. Recreation G Environmental sciences GE1-350 Geology QE1-996.5 |
spellingShingle |
Environmental technology. Sanitary engineering TD1-1066 Geography. Anthropology. Recreation G Environmental sciences GE1-350 Geology QE1-996.5 D. Oramas-Dorta G. Tirabassi G. Franco C. Magill Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
topic_facet |
Environmental technology. Sanitary engineering TD1-1066 Geography. Anthropology. Recreation G Environmental sciences GE1-350 Geology QE1-996.5 |
description |
Volcanic eruptions are rare but potentially catastrophic phenomena, affecting societies and economies through different pathways. The 2010 Eyjafjallajökull eruption in Iceland, a medium-sized ash-fall-producing eruption, caused losses in the range of billions of dollars, mainly to the aviation and tourism industries. Financial risk transfer mechanisms such as insurance are used by individuals, companies, governments, etc., to protect themselves from losses associated with natural catastrophes. In this work, we conceptualize and design a parametric risk transfer mechanism to offset losses to building structures arising from large, ash-fall-producing volcanic eruptions. Such a transfer mechanism relies on the objective measurement of physical characteristics of volcanic eruptions that are correlated with the size of resulting losses (in this case, height of the eruptive column and predominant direction of ash dispersal) in order to pre-determine payments to the risk cedent concerned. We apply this risk transfer mechanism to the case of Mount Fuji in Japan by considering a potential risk cedent such as a regional government interested in offsetting losses to dwellings in the heavily populated prefectures of Tokyo and Kanagawa. The simplicity in determining eruptive column height and ash fall dispersal direction makes this design suitable for extrapolation to other volcanic settings worldwide where significant ash-fall-producing eruptions may occur, provided these parameters are reported by an official, reputable agency and a suitable loss model is available for the volcanoes of interest. |
format |
Article in Journal/Newspaper |
author |
D. Oramas-Dorta G. Tirabassi G. Franco C. Magill |
author_facet |
D. Oramas-Dorta G. Tirabassi G. Franco C. Magill |
author_sort |
D. Oramas-Dorta |
title |
Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
title_short |
Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
title_full |
Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
title_fullStr |
Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
title_full_unstemmed |
Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes |
title_sort |
design of parametric risk transfer solutions for volcanic eruptions: an application to japanese volcanoes |
publisher |
Copernicus Publications |
publishDate |
2021 |
url |
https://doi.org/10.5194/nhess-21-99-2021 https://doaj.org/article/568481087a754d1294063939b4310b74 |
genre |
Eyjafjallajökull Iceland |
genre_facet |
Eyjafjallajökull Iceland |
op_source |
Natural Hazards and Earth System Sciences, Vol 21, Pp 99-113 (2021) |
op_relation |
https://nhess.copernicus.org/articles/21/99/2021/nhess-21-99-2021.pdf https://doaj.org/toc/1561-8633 https://doaj.org/toc/1684-9981 doi:10.5194/nhess-21-99-2021 1561-8633 1684-9981 https://doaj.org/article/568481087a754d1294063939b4310b74 |
op_doi |
https://doi.org/10.5194/nhess-21-99-2021 |
container_title |
Natural Hazards and Earth System Sciences |
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21 |
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1 |
container_start_page |
99 |
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113 |
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