Catastrophe modeling (also known as cat modeling) is the process of using computer-assisted calculations to estimate the losses that could be sustained by a portfolio of properties due to a catastrophic event such as a hurricane or earthquake. Cat modeling is especially applicable to analysing risks in the insurance industry and is at the confluence of actuarial science, engineering, meteorology, and seismology.

Perils analysed

Natural catastrophes (sometimes referred to as "nat cat") include:

• hurricane (main peril is wind damage; some models can also include storm surge)
• earthquake (main peril is ground shaking; some models can also include fire following earthquakes and sprinkler leakage damage)
• tornado
• flood
• wind storm/hail
• wildfire

Other catastrophes include:

• terrorism events
• warfare
• Casualty/liability events
• Displacement Crises

Lines of business modeled

• Business personal property
• Commercial property
• Workers' compensation
• Automobile physical damage
• Leasehold improvements
• Limited liabilities
• Product liability