Catastrophe modeling is an untraditional branch of property and casualty insurance. Although, Baltic States recently faced some catastrophe events such as storms and floods, there is no accurate storm or flood model present which can provide assistance to insurance companies to underwrite premium and risk management in catastrophe prone areas.
This thesis presents an analysis of natural catastrophe events in Estonia. Due to lack of historical data one can use three approaches. First, take the scenario of rest Baltic States, Scandinavia and Finland to present some accurate picture of historical losses. Second, analyze windstorm and flood event and their distributions. Third, by combining windstorm and floods together what potential damage may occur. This thesis also gives light to mathematical and statistical modeling of vulnerability function, damage ratio, average annual loss and exceedance probability which are used for natural catastrophic perils to estimate financial losses
