Catastrophe hazard

Catastrophe hazard,

Definition of Catastrophe hazard:

  1. A catastrophe hazard is a technical term for a high risk of loss from a particularly destructive event—such as a hurricane, flood, or a terrorist attack—for a large group of individuals or families with an insurance policy.

  2. The danger of a large-scale loss due to a hazard that could effect a very large number of insured people, for example, an earthquake.

  3. For insurers, catastrophe hazards represent a particularly large risk because of the overwhelming number of claims that may be filed at the same time in the aftermath of a highly destructive event.

Meaning of Catastrophe hazard & Catastrophe hazard Definition