In the aftermath of a natural catastrophe, there is increased demand for skilled reconstruction labor, which leads to significant increases in reconstruction labor wages and hence insured losses. Such inflation effects are known as "Demand Surge" effects. It is important for insurance companies...

There is a 30 percent chance that an earthquake strong enough to cause significant damage will strike southwestern British Columbia in the next 50 years, and a 5 to 15 percent chance that a major earthquake will strike southern Quebec or eastern Ontario. These quake zones encompass several...

Reinsurance offers coverage for primary insurers and is available to back them up. Insurers have an increasing demand for more financial capacity when underwriting catastrophic risks. With respect to catastrophic risks, reinsurance's role takes several forms. Reinsurance can take a significant...

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...