Insurance and reinsurance markets are exposed to influence of unsystematic catastrophe risk, which is caused by adverse development in natural disasters. Deepening of influence is highlighted in relation to irregular and extreme impacts of catastrophes. Insurers face to coverage of random loss...

This paper provides a welfare analysis of solvency regulation for catastrophe insurance. We consider an economy with risk-averse agents exposed to a common source of risk and an insurer owned by risk-averse shareholders. We show that the optimal insurance contract features full coverage and is...

In this paper, we evaluate state regulation of insurance markets subject to catastrophe risk and, more specifically, homeowners insurance and commercial property insurance. When insurers suffer substantial losses following a catastrophic event, pressures on property insurance markets can...

This paper studies the evolution of hurricane insurance in Florida over the last decades. Hurricanes (and other natural catastrophes) are typically referred to as “uninsurable” risks. The more exposed property owners find it difficult to obtain insurance cover from the private market and/or...

With the onslaught of tornadoes, hurricanes, and floods in recent years, business interruption losses have been staggering. Many businesses do not survive such catastrophes. Even business owners that purchased business interruption insurance, which is intended to ensure that a business’s...

Economic and insured losses from natural catastrophes have increased significantly in recent years and are challenging the way catastrophe risk insurance markets operate today. This chapter focuses on how insurance in combination with other policy tools can reduce losses from natural disasters...

With climate change, continued property development throughout the country, and a growing population, natural catastrophes are becoming more frequent and more damaging in America. The most common natural catastrophes are floods, tornadoes, hurricanes, wildfires, earthquakes, and landslides. Of...