Journal of Risk & Insurance · 2000 · 240 citations · 0 references
BusinessInsuranceRisk ManagementDisaster Risk ReductionFlood Risk ManagementReinsuranceDisaster Risk Reduction PolicyEarthquake InsuranceFlood Hazard MitigationFlood InsuranceFlood Risk CoverageInsurance PolicyDisaster Insurance PolicyDisaster Risk InsuranceFlood Risk InsuranceFlood Risk Reduction PoliciesMitigation Of Future LossesNatural Hazard InsurancePrivate Insurance CoverageSeismic Building Codes
The book examines the effectiveness of insurance for low‑probability, high‑consequence natural disasters, noting rising insured losses since 1989, growing demand for hazard coverage, and the roles of reinsurance and public initiatives in protecting victims. It identifies new initiatives that reduce future losses and fund recovery through cooperation among insurers, regulators, and other stakeholders. The authors use detailed case studies of Florida after Hurricane Andrew (1992) and California after the Northridge earthquake (1994) to illustrate the challenges faced by the insurance industry and other stakeholders. The National Flood Insurance Program demonstrates that a public‑private partnership can mitigate damages and provide financial protection to disaster victims.
This book considers the effectiveness of insurance coverage for low-probability, high-consequence events such as natural disasters--and how insurance programs can successfully be used with other policy tools, such as building codes and standards, to encourage effective loss reduction measures. The authors discuss the reasons for the dramatic increase in insured losses from natural disasters since 1989 and the concern that insurers have about their ability to provide coverage against more such events in the future. It addresses why there has been an increasing demand for hazards insurance, what types of coverage private insurers are willing to offer, and the role of reinsurance and private-/public-sector initiatives at the state and federal levels for providing protection to victims of natural disasters. Detailed case studies of the challenges facing Florida in the wake of Hurricane Andrew in 1992 and California following the Northridge earthquake in 1994 reveal the challenges facing the insurance industry as well as other concerned stakeholders. The National Flood Insurance Program illustrates how a public-/private-sector partnership can mitigate damages and provide financial protection to victims. The book identifies new initiatives for reducing future losses and providing funds for recovery through cooperation by the relevant parties.