Natural disasters and disruption in property insurance markets: the case for federal reinsurance
Article Abstract:
The main causes of the disruption in homeowners' insurance markets following recent natural disasters are analyzed. Additional information on state insurance and reinsurance programs addressing catastrophic exposure and a proposed federal reinsurance program is also included.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 2000
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Catastrophe modeling (opening the black box)
Article Abstract:
Catastrophe modeling affords insurers, underwriters, and actuaries with a more accurate means of assessing risks in managing disaster exposure in high-risk areas such as Florida. Catastrophe modeling relies on three basic components which incorporate science, engineering, and insurance. The science component can simulate natural forces such as wind or ground movement, engineering can assess the damaging effects of the forces, and insurance aids in estimating the costs involved in such situations.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1997
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The public policy of CAT models: the "black box" syndrome and beyond
Article Abstract:
The devastating effects of Hurricane Andrew in 1992 coupled with more losses from other storms in 1996 have caused insurers to completely restructure property insurance rates in coastal areas prone to similar disasters. The use of catastrophe modelling to evaluate risks has been met with opposition from state lawmakers and legislators due to its detrimental effects on prices of insurance markets. Regulators have also resisted the new technology due to its radical departure from accepted loss and expense procedures.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1997
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