The benefits of introducing a mandatory state hurricane insurance scheme in Florida

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Ressource 1Télécharger: BIB_5FCF15D0165B.P001.pdf (252.76 [Ko])
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serval:BIB_5FCF15D0165B
Type
Rapport: document publié par une institution, habituellement élément d'une série.
Sous-type
Working paper: document de travail dans lequel l'auteur présente les résultats de ses travaux de recherche. Les working papers ont pour but de stimuler les discussions scientifiques avec les milieux intéressés et servent de base pour la publication d'articles dans des revues spécialisées.
Collection
Publications
Institution
Titre
The benefits of introducing a mandatory state hurricane insurance scheme in Florida
Auteur(s)
von Ungern-Sternberg T.
Détails de l'institution
Université de Lausanne - HEC - DEEP
Date de publication
10/2009
Numéro
09.10
Genre
Cahiers de recherches économiques
Langue
anglais
Nombre de pages
22
Résumé
As a result of its hurricane exposure, Florida is probably the part of the industrialised world most prone to natural catastrophes. Over the last 20 years the Florida legislator has tried to maintain a situation, where the private insurance sector plays a major role in providing hurricane-insurance. Its attempts to keep such insurance affordable have, however, led to a situation, where the public sector still ends up bearing a large part of the risk. Drawing on the experience of various European countries with mandatory state run catastrophe insurance schemes, we argue that the cost of hurricane insurance for the population could be substantially reduced, if Florida created a similar institution. The massive reduction in sales costs, loss adjustment costs and general administrative costs would allow such a system to work with premiums that are on average 25% lower. The problems of adverse selection which plague the current situation would of course (by definition) be eliminated.
Mots-clé
hurricane insurance, mandatory insurance, regulation, market failure, Florida
Création de la notice
13/08/2013 15:15
Dernière modification de la notice
21/08/2019 6:09
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