Balancing Acts: Tradeoff among Insurance, Architecture and Community Resilience

Extreme weather events worldwide have led to substantial economic losses, prompting a crisis for property owners and insurers. This paper introduces the Available Profit of Insurance Model and the Architecture Conservation Model, aiming to reconcile insurer profitability with property owner affordability. First, the model is constructed, comprising the insurance rate and risk components, with specific formulas derived using methodologies such as the Black-Scholes model and gray prediction model. Then nine construction location types are identified and analyzed across various countries, revealing geographical location as a significant factor in insurer decision-making. Furthermore, fifteen secondary indicators are selected to establish the Architecture Conservation Model, aiding in recognizing and preserving architectural value. The model’s accuracy is validated through application to a specific region, offering recommendations for protective measures. A sensitivity analysis is conducted on influencing factors, and the model’s strengths, weaknesses, and suggestions for optimization are discussed. Finally, with the combination of above two models, Buenos Aires Metropolitan Cathedral goes down as a typical case with analytical value, and recommendations are provided to the community.