Determining Premium for Disaster Reinsurance Program through Supply Chain Risk Management: An Application of Peak Over Threshold (POT) Approach

The purpose of this study is to determine the pricing (premium) for disaster reinsurance program. For those, this study uses the Peak Over Threshold (POT) approach, where the method pays attention to the pattern of heavy tail behaviour on the number of victims killed due to disaster events through extreme values with a reference value called the threshold null u . The results of the analysis showed that the reinsurance premiums for flood...