Natural catastrophes often have catastrophic risks on insurance companies as well as on the insured. Using a very large … dataset on homeowners' insurance coverage by state, by firm, and by year for the 1984 to 2004 period, this paper documents the … "blockbuster catastrophes." Insurers adapt to these catastrophic risks by raising insurance rates, leading to lower loss ratios …

State guaranty funds are quasi-governmental agencies that provide insurance to policyholders against the risk of … insurance company failure. But insurance provided by guaranty funds, like all insurance, creates moral hazard problems … insurance companies to borrow money (i.e., from policyholders). Moreover, the existence of guaranty fund insurance enables …

Home equity insurance policies, policies insuring homeowners against declines in the price of their homes, would bear … some resemblance both to ordinary insurance and to financial hedging vehicles. A menu of choices for the design of such … insurance company in effect serves as a retailer to homeowners of short positions in real estate futures markets or of put …

form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …

distributed through the insurance and reinsurance systems. However, because insurance companies tend to share relatively small … amounts of their cat exposures and because insurance companies' capital is threatened by large event, these risks are now …

Insurance markets often feature consumer sorting along both an extensive margin (whether to buy) and an intensive …

insurance markets, but are rarely incorporated in government assurance programs. We analyze accidental underground fuel tank …-level government assurance program and switching to private insurance markets to finance cleanups reduced the frequency of costly …

This paper proposes long-term insurance (LTI) as an alternative to the standard annual homeowners policy using lessons …