Although the insurance industry demonstrates a growing concern about the severe rise in losses from natural disasters …, only about one third of all potential victims have in fact purchased first-party catastrophe insurance. Although first …-party insurance has several advantages, we find that there is indeed actually no demand for and supply of first-party insurance for …

contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …