Integrated Catastrophe Model is a computer system that performs the process of estimating disaster losses. This model generates a data set of disaster events from the simulation process, then estimates the magnitude, intensity and location of these events to determine the amount of damage and calculate insurance losses as a result of the catastrophic event.

The catastrophe model is not only the use of software which is one small part of the use of the model in business. A solid and deep understanding of the appropriateness and limitations of the use of the model is the most important part. Just like the model in general which tries to simplify and re-present a natural phenomenon.

The study of the theory of frequency and source of catastrophe events in the 1970s became the beginning of the history of the development of the catastrophe model. After GIS developed well, in 1987 companies in the United States began to develop the catastrophe model. Then insurance and reinsurance companies began to use this model in supporting business decisions, especially since the Loma Prieta earthquake (1989) and Typhoon Andrew (1992) which caused 9 insurance companies to go bankrupt. In 2001, the catastrophe model was commonly used by the insurance industry in determining the price of insurance policies and the need for cover that must be owned (Grossi and Kunreuther, 2005). In 2010, the Indonesian insurance industry used earthquake insurance zones and rates from the calculation of the catastrophe model developed by MAIPARK (MAIPARK, 2014).