**AUTHORS:**Pavla Jindrová, Viera Pacáková

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**ABSTRACT:**
Catastrophic events are characterized by three main points: there are relatively rareness, there are
statistical unexpected and there have huge impact on the whole society. Insurance or reinsurance is one way of
reducing the economic consequences of catastrophic events. Risk management of insurance and reinsurance
companies have to have available relevant information for estimation and adjusting premium to cover these
risks. The aim of this article is to present two of the useful methods – block maxima method and peaks over
threshold method. These methods use information from historical data about insured losses of natural
catastrophes and estimates future insured losses. These estimates are very important for actuaries and for risk
managers as one of the bases for calculating and adjusting premiums of products covering these types of risks

**KEYWORDS:**
- Block maxima model, catastrophic events, insured losses, modelling, peaks over threshold, risk.

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #2, pp. 9-17
**

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