Author(s)

Jiayu Zou ¹, Yankun Guo ¹, Liming Liu ¹

Affiliation(s)

¹ School of Energy, Power and Mechanical Engineering, No. 2 Campus of Baoding Subordinate to North China Electric Power University, Baoding, 071003, China

Corresponding Author

Jiayu Zou

ABSTRACT

In recent years, the number of extreme weather has gradually increased, and the real estate industry has suffered setbacks. Meanwhile, the premium of property insurance has correspondingly increased, and the real estate industry and the insurance industry have encountered difficulties. Aiming at underwriting risks for insurance companies, this paper establishes an Extreme Weather Risk Assessment Model (EWA) based on K-Means, which is used to evaluate whether to write insurance policies in an area where the frequency of extreme weather is increasing. Two regions, Texas and London, were selected for practical analysis. Aiming at the investment Location problem of Real Estate companies, this paper establishes the optimization Model of Real Estate Location Evaluation Model (REE) by using Entropy Weight Method and Cluster Analysis Method on the basis of EMA model, which enables real estate companies to evaluate whether to invest in certain locations.

KEYWORDS

Insurance, Conservation, K-Means, Risk, Entropy Weight Meth

CITE THIS PAPER

Jiayu Zou, Yankun Guo, Liming Liu, Research on Extreme Weather Risk Assessment Model Based on Entropy Weight Method and Cluster Analysis Method. Financial Engineering and Risk Management (2024) Vol. 7: 155-162. DOI: http://dx.doi.org/10.23977/ferm.2024.070420.

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