Abstract
The distribution of catastrophic (cat) event risk is highly unfavorable without insurance and reinsurance. Individual households and companies are significantly exposed to their own property damage; and because they are not exposed to others’ property damage, these entities are not rewarded with a financial gain if no cats occur. Households and corporations dislike this situation; they face a large potential down-side from cats that affect them yet receive no upside when no cats occur.
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© 2001 Springer Science+Business Media New York
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Froot, K. (2001). The Evolving Market for Catastrophic Event Risk. In: Figlewski, S., Levich, R.M. (eds) Risk Management: The State of the Art. The New York University Salomon Center Series on Financial Markets and Institutions, vol 8. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0791-8_5
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DOI: https://doi.org/10.1007/978-1-4615-0791-8_5
Publisher Name: Springer, Boston, MA
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