Resilience Enhancement Strategy for Distribution System Considering Insurance Investment Budgets

Climate change-induced extreme disasters cause significant economic losses to distribution system operators (DSOs), while conventional resilience-enhancement strategies usually treat investment budgets as exogenous and do not explicitly link disaster-risk assessment, premium formation and resource allocation. This paper proposes a resilience enhancement strategy for distribution systems considering insurance investment budgets. From the insurer's perspective, historical typhoon trajectories are clustered using a Hausdorff-distance-based k-means method, and typical branch-fault scenarios are generated through Monte Carlo simulation. Based on these scenarios, the planning-stage model evaluates current disaster-induced load loss and forms an affordable insurance premium for the DSO. The premium serves as the coupling variable that converts disaster-risk assessment into insurance-budget-constrained resource allocation and reserve decisions in the operation stage. The framework is formulated as two scenario-based stochastic mixed-integer programming models, jointly considering network reconfiguration, distributed generation allocation, energy storage allocation, state of charge and insurance reserve. The IEEE 33-bus case verifies the complete mechanism under retained fault scenarios, while a representative severe-scenario IEEE 118-bus case examines its applicability under a larger network scale. Results show that the proposed framework reduces load shedding and compensation pressure while maintaining positive insurer profit.