Should I Stay or Should I Go? The Impact of Natural Disasters and Regulation on U.S. Property Insurers’ Supply Decisions |
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| Authors: | Patricia H Born Barbara Klimaszewski‐Blettner |
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| Institution: | Patricia H. Born is an Associate Professor, College of Business, Florida State University, Department of Risk Management/Insurance, Real Estate and Business Law. The author can be contacted via e‐mail: pborn@cob.fsu.edu. Barbara Klimaszewski‐Blettner is an Executive Assistant to Board Member of Allianz SE. The authors are grateful for comments received from Rob Hoyt, Richard Phillips, Andreas Richter, J?rg Schiller and participants of the Risk Theory 2009 seminar. This work was completed when Dr. Klimaszewski‐Blettner was a Doctoral Candidate at the Munich School of Management, Ludwig‐Maximilians‐Universit?t, Munich. Support from the Institute for Risk Management and Insurance is gratefully acknowledged. The content of this work does not reflect the opinion of Allianz SE or any of its affiliated companies or employees. It is the authors’ personal opinion. |
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| Abstract: | In this article, we identify the main factors that drive insurers’ willingness to offer coverage in catastrophe‐prone property insurance lines. We compare insurers’ supply decisions in personal and commercial lines, with an emphasis on insurers’ responses in the aftermath of natural disasters. Our empirical results suggest important policy implications with regard to improving the availability of insurance against catastrophic threats. Concerning the impact of regulatory constraints, we present empirical evidence that certain regulatory responses may unintentionally impede insurers’ willingness to provide coverage against natural disasters. |
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