JAABE
[ Architectural/Urban Planning and Design ]
Journal of Asian Architecture and Building Engineering - Vol. 15, No. 3, pp.441-446
ISSN: 1346-7581 (Print) 1347-2852 (Online)
Print publication date 30 Sep 2016
Received 05 Apr 2016 Accepted 14 Jul 2016
DOI: https://doi.org/10.3130/jaabe.15.441

Loss Prediction Model for Building Construction Projects Using Insurance Claim Payout

Hanguk Ryu1 ; Kiyoung Son2 ; Ji-Myong Kim*, 3
1Associate Professor, Department of Architectural Engineering, Changwon National University Korea
2Assistant Professor, School of Architectural Engineering, University of Ulsan Korea
3Construction Science Department, Texas A&M University, College Station, Texas USA

Correspondence to: *Ji-Myong Kim, Texas A&M University, TAMU Langford A128, College Station, Texas, 77843, USA Tel: +82-2-758-4655 Fax: +82-2-758-4542 E-mail: ando_jm@hotmail.com

Abstract

The amount of risk and the occurrence of damage in construction projects have increased as construction projects are becoming larger and more complex, increasing the demands for an effective risk assessment model. Therefore, quantitative risk analysis is needed to develop a financial risk assessment model using the risk indicators for construction projects. To address this need, authors analyzed the damage records of actual construction sites in South Korea, in order to identify the critical risk factors of damage and investigate the relationships among the risk indicators to develop a loss prediction model. Authors used claim payout records from an insurance company to reflect real financial loss as the dependent variable. As independent variables, authors adopted four risk categories based on our literature review and data analysis: natural hazards, geographic information, construction method and ability, and construction information. Our loss prediction model for construction projects, along with our findings, offers fundamental guidelines for construction companies, construction project owners, and insurance companies hoping to model and predict financial loss for building construction projects.

Keywords:

building construction, damage cause analysis, loss ratio, claim payouts, loss prediction model

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