Cost and Severity of Natural Catastrophes in Extreme Events: Implications for Society and Insurances

A multi-scale statistical framework for NatCat event modelling explicitly accounting for heavy tails, regional clustering, and cross-peril correlation is developed and applied to a 60-year global event dataset. The model identifies structural under-pricing in current NatCat insurance products and proposes scenario-based stress tests applicable to solvency regulation — with urgent implications for fiscal resilience in catastrophe-prone regions including Morocco.