Journal article
Urban Homeowners Insurance Markets in Texas: A Search for Redlining
The Journal of risk and insurance, Vol.68(4), pp.581-613
12/01/2001
DOI: 10.2307/2691540
Abstract
There has been a continuing debate in Texas and other states about the availability and cost of home insurance to residents of inner city and minority neighborhoods. Consumer and community advocates contend that insurers engage in redlining, or unfair discrimination against minority areas, by charging excessive prices and limiting the supply of insurance. Unfortunately, insurance redlining allegations have been largely based on simple comparisons of minority and nonminority areas that do not consider the influence of other factors. In this article, the authors build on a more rigorous vein of research by using econometric analysis to identify measurable factors that affect urban homeowners insurance markets. While this study cannot conclusively prove or disprove the presence and negative effect of unfair discrimination, it assesses whether significant statistical evidence exists for such behavior. The authors conclude that no statistical evidence of redlining exists and that the risk of loss and the demand for insurance appear to primarily drive the terms of insurance transactions. This conclusion implies that measures directed toward enhancing safety and bettering economic conditions offer the best prospects for improving urban insurance markets.
Details
- Title: Subtitle
- Urban Homeowners Insurance Markets in Texas: A Search for Redlining
- Creators
- Robert W. KleinMartin F. Grace
- Resource Type
- Journal article
- Publication Details
- The Journal of risk and insurance, Vol.68(4), pp.581-613
- Publisher
- American Risk and Insurance Association
- DOI
- 10.2307/2691540
- ISSN
- 0022-4367
- eISSN
- 1539-6975
- Number of pages
- 33
- Language
- English
- Date published
- 12/01/2001
- Academic Unit
- Finance
- Record Identifier
- 9984701259002771
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