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What is Natural Catastrophe Insurance How Should The Government Intervene about?

This paper analyzes the role of government intervention in natural catastrophe insurance, highlighting the risks of insurer insolvency and the implications for policyholders. It argues that government-provided insurance can mitigate negative externalities by spreading risks among policyholders, making it more attractive than private insurance. The study also discusses the inefficiencies that may arise in government programs, particularly in regions with heterogeneous risks and correlated claims.

Author

p75889376

Language

EN