The distinction between induced and triggered seismicity is based on whether all or only a portion of the strain energy released was anthropogenic. The term induced is used when the majority of the energy was anthropogenic, while triggered is employed when it was predominantly of natural origin.
The distinction between induced and triggered events has profound implications for the insurance industry. A clear understanding of the underlying causes can inform policy structuring, risk modeling, and claims handling.
Similarly, the same principle applies to employee benefits (IAS19). In this case, we need to distinguish between events that are triggered by an individual’s past actions or induced by the employer.
In a rapidly evolving landscape shaped by AI, how can we define events as being triggered or induced?
The Solvency II regime clearly distinguished between man-made catastrophic events and natural ones—induced and triggered.
The final severity is a combination of both induced and triggered events. We would like to concentrate on the energy released as a means of quantifying the loss of entropy associated with the hypothetical random variable of the severity.
At the global scale, we can discern which claims may be induced rather than triggered by random events.
The IBNR is a pure induced reserve because it reflects the quality of an insurance company’s ability to set the RBNS in the first place.
A variety of human activities have been suggested to have induced seismicity. As of January 2025, the following map depicts human-induced earthquakes (the pink dots), as recognized by official standards.
