Long Term Insurance (LTI) for Addressing Catastrophe Risk
| Autor: | Dwight Jaffee, Howard Kunreuther, Erwann Michel-Kerjan |
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| Rok vydání: | 2008 |
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| Popis: | This paper proposes long-term insurance (LTI) as an alternative to the standard annual homeowners policy using lessons from the mortgage market as a benchmark. LTI has the potential to significantly increase social welfare by reducing insurers' administrative costs, lowering search costs and uncertainty for consumers and providing incentives for long-term investment in mitigation measures to protect property. A two-period model illustrates situations that would make a long-term contract attractive to both insurers and consumers under competitive market conditions. |
| Databáze: | OpenAIRE |
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