The impact of epistemic uncertainty on an earthquake loss model

Models capable of estimating losses in future earthquakes are of fundamental importance for emergency planners, for the insurance and reinsurance industries, and for code drafters. Constructing a loss model for a city, region or country involves compiling databases of earthquake activity, ground conditions, attenuation equations, building stock and infrastructure exposure, and vulnerability characteristics of the exposed inventory, all of which have large associated uncertainties. Many of these uncertainties can be classified as epistemic, implying—at least in theory—that they can be reduced by acquiring additional data or improved understanding of the physical processes. The effort and cost involved in refining the definition of each component of a loss model can be very large, for which reason it is useful to identify the relative impact on the calculated losses due to variations in these components. A mechanically sound displacement-based approach to loss estimation is applied to a test case of buildings along the northern side of the Sea of Marmara in Turkey. Systematic variations of the parameters defining the demand (ground motion) and the capacity (vulnerability) are used to identify the relative impacts on the resulting losses, from which it is found that the influence of the epistemic uncertainty in the capacity is larger than that of the demand for a single earthquake scenario. Thus, the importance of earthquake loss models which allow the capacity parameters to be customized to the study area under consideration is highlighted. Copyright © 2005 John Wiley & Sons, Ltd.