Optimization of life cycle cost cooperated with insurance

A methodology to optimize life cycle cost (LCC) of civil engineering structures is discussed, including the construction cost and emerging cost due to natural hazard. Since losses due to natural hazard during the life cycle is considered serious among other costs, typhoon damage during a relatively short period of construction, and earthquake damage during the life cycle are specifically considered. Here, since insurance is considered a measure to avoid such risk, the premium is included in the total cost. However, ordinary maintenance costs are excluded for simplicity as well as under the assumption that this maintenance cost may not be largely changed among different alternatives. Within the framework of the methodology, a procedure is also proposed to determine an optimal premium such that the expected annual loss of insurant becomes minimum.