Melchior Mattens, a cum laude graduate of the MSc Actuarial Science and Mathematical Finance, received the Johan de Witt Thesis Award for his thesis ‘Climate change and Insurance: Projection of premium level developments in a competitive property insurance market’.
Mattens received the award, a statuette, and a cash prize of €5,000 during the Royal Actuarial Society’s fall conference held on 23 November. Dr. Tim Boonen (ASE Quantitative Economics section) was the thesis supervisor.
Climate change has an impact on both the average cost of claims and the catastrophe risk. Consequently, it will also affect the contributions policy and the capital policy of general insurers. In a competitive market governed by Solvency II regulations, this leads to a complex problem. In his thesis Mattens concluded that a rise in contributions could amount to as much as 20% in the coming 30 years as a result of climate change.
The jury was impressed by the originality of the thesis. The combination of modelling storm damage with intelligent parameters and a market analysis using game theory led to distinctive results.
More information (in Dutch) and a link to the thesis can be found on the Royal Actuarial Society website.