Bridging the Insurance Gap in Extreme Weather: A Multidimensional Risk Assessment Framework Integrating Socioeconomic Indicators and Cultural Preservation for Sustainable Property Insurance

Abstract

Extreme weather events have intensified the insurance gap, posing significant challenges to the sustainability of the property insurance industry. To address this issue, we propose the Catastrophes Insurance Underwriting (CIU) Risk Assessment Model, optimized from the perspectives of property development and landmark preservation. Our model integrates social, economic, and natural indicators into an evaluation system and classifies risk levels using Projection Pursuit and the GE matrix. We employ AHP-CRITIC to evaluate candidate sites, aiding real estate decision-making. Furthermore, for historical and culturally significant sites, we propose a Preservation Model, incorporating a Building Value Evaluation Model (BVEM) to assess protection levels. Our comprehensive framework balances insurance profitability, real estate feasibility, and cultural preservation, providing data-driven strategies for sustainable insurance practices. Future research should explore innovative insurance solutions and dynamic preservation policies to enhance industry resilience.