Neglecting Disaster: Why Don't People Insure Against Large Losses?

By Howard Kunreuther, Mark Pauly. 2004

330 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Soil Science

View Paper: https://www.semanticscholar.org/paper/593a038eff1459faf9451666a2f872b46e71dffc

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Citations in the corpus

Insurability of Climate Risks (2008, background): “� Getting an actuarial price for these products, with consistency over time: reinsurance markets are very sensitive to catastrophes (until 2001 Chicago Airport paid a premium of $0.125 million for a $750 million cover, and following 9/11 the premium was $6.9 million for a $125 million cover), while ”
Handbook of Consumer Finance Research (2008, background): “However, many individuals have limited interest in insurance policies that provide protection from such catastrophic events (Kunreuther & Pauly, 2004 ).”
Risk Preferences, Risk Perceptions, and Flood Insurance (2013, neutral): “2006), as well as in an experimental setting (McClelland, Schulze, and Coursey 1993). The only explicit empirical evidence of the role of risk information in flood insurance decisions is an article published 34 years ago by Baumann and Sims (1978). They find higher insurance uptake among homeowners ”
11 Postcards from the Edge (2007, background): “Finally, Kunreuther and Pauly (2004) argued that people often underestimate the cost of rare events.”
Rationality of Choices in Subsidized Crop Insurance Markets (2017, background): “If so, then disasters viewed as being rare are optimally left uninsured (Kunreuther and Pauly 2004).”
Divergence between individual perceptions and objective indicators of tail risks: Evidence from floodplain residents in New York City (2015, neutral): “(Kunreuther and Pauly 2004).”
Individual preferences for reducing flood risk to near zero through elevation (2013, background): “Individuals who do not know the actual probability of a natural hazard may not take actions to limit risk if acquiring knowledge about the probability involves considerable search costs (Kunreuther and Pauly 2004).”
Charity hazard—A real hazard to natural disaster insurance? (2007, neutral): “A recent publication by Kunreuther and Pauly (2004) includes this idea into a formal model of decision making costs under imperfect information and show that individuals still refuse to purchase natural hazard insurance even if the premiums are attractive.”