Journal article
Facing Mother Nature
Regulation (Washington. 1977), Vol.30(3), pp.28-34
10/01/2007
Abstract
Changes in insurance markets that followed the flurry of hurricanes in 2004-2005, capped by Hurricane Katrina, have been met by a storm of criticism in Congress and state capitals. Rather than addressing the economic realities of increasing catastrophe risk with informed discussion and sound proposals and policies, politicians are attacking its messenger -- the insurance industry. Property losses from hurricanes are a function of both hurricane activity and the value and vulnerability of structures in their path. A 2004 National Oceanic and Atmospheric Administration study estimates that 153 million people lived in coastal counties in 2003, representing 53% of the US population but only 17% of the US' land mass. Homeowners insurance, especially in light of recent trends in hurricane frequency and severity, must be priced in accordance with the insured risk and associated costs. Florida's response to the increased frequency and severity of hurricanes has been to effectively ignore or grossly underestimate the risk.
Details
- Title: Subtitle
- Facing Mother Nature
- Creators
- Martin GraceRobert Klein
- Resource Type
- Journal article
- Publication Details
- Regulation (Washington. 1977), Vol.30(3), pp.28-34
- Publisher
- Cato Institute; Washington
- ISSN
- 0147-0590
- eISSN
- 1931-0668
- Language
- English
- Date published
- 10/01/2007
- Academic Unit
- Finance
- Record Identifier
- 9984700648602771
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