With homes washed away and parts of the Central Coast declared a natural disaster zone, the recent storms in New South Wales have once again demonstrated the unpredictability of nature and the risk to both lives and properties. With devastation comes insurance claims.

A major challenge for the industry is the measurement of risk. Over a 100-year period, fewer than 10 people died from earthquakes in Haiti. Then, in February 2010, more than 200,000 lost their lives. “You cannot simply wait for catastrophes to happen to work out the technical price for catastrophe…