ABSTRACT
An economic analysis of fire protection measures is concerned with finding the least expensive way to fulfil regulatory and insurance requirements for the safety of life and property. This involves the selection and comparison of different fire protection strategies and identifying the strategy that minimises the sum of expected values of costs associated with self-insured fire loss, fire insurance premiums and fire protection. The usual practice in such an analysis is to reduce the relevant losses and costs to an annual basis. For this purpose, various methods have been developed, which are discussed in this chapter and explained with examples.
