2017 proved to be one of the costliest disaster years on record. Total damages in the US for the year are estimated to exceed $300 billion. Insured losses for all natural disasters in 2017 will total around $135 billion.
Do events like these cause (re)insurers to update their risk assessments? How do firms, consumers, and government respond to a perceived change in risk? Carolyn Kousky examines these questions in a book chapter titled “Revised Risk Assessments and the Insurance Industry” in the recently released Policy Shock, edited by Edward J. Balleisen, Lori S. Bennear, Kimberly D. Krawiec, and Jonathan B. Wiener. The chapter limits its attention to disaster insurance.…Read More