choices between alternatives. We study whether defaults can be used to increase insurance coverage against low …-probability/high-impact risks, like floods, and whether past flood insurance purchases and flooding experience moderate the effect of defaults. Our … study uses a naturally occurring difference in experience, comparing the surveyed flood insurance choices of 1 …

reduces total premiums earned in the state, reduces the total number writing insurance coverage in the state, and leads to the …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 …

earthquake protection in Quebec and British Columbia is influenced by the default option and the structure of the insurance plan … of the following options: the current private insurance plan, a high deductible private insurance plan, and a proposed … pool rather than the current private insurance plan increases the likelihood of purchasing earthquake protection by 151 …

. Concurrently, the number and volume of flood insurance policies has been declining since 2008. Hence, households who have purchased … after a natural disaster that caused more than a billion dollar in damages. Results suggest a substantial increase in … securitization activity in years following such a billion-dollar disaster. Such increase is larger in neighborhoods for which such a …

This paper proposes long-term insurance (LTI) as an alternative to the standard annual homeowners policy using lessons …-term investment in mitigation measures to protect property. A two-period model illustrates situations that would make a long …

The first section of the paper addresses the first question by outlining two principles on which a disaster insurance … question and delineates the opportunities and challenges of a comprehensive disaster insurance program. Section 5 poses a set … of open issues that are currently being addressed by a research project on disaster insurance undertaken by the Wharton …

This paper examines the optimal design of insurance and reinsurance policies. We first consider reinsurance for … threaten the solvency of re- insurance such as a major earthquake, while others derive from common risks-changes in conditions … for long-term patterns of losses and premiums, where the latter reflect learning learning about loss distributions …

This study examines the effect of experience and knowledge on weather insurance adoption. First, we conduct insurance … games with farmers, and find that the treatment improves real insurance take-up by 46%. The effect is not driven by changes … in risk attitudes and perceived probability of disasters, or by learning of insurance benefits, but is driven by the …

use CAT bonds for insurance only if the cost of issuing these bonds were significantly smaller than it is in the data. The … welfare gains from CAT bonds range from small to substantial depending on how insurance affects the country's external …