Did You Know?

This section is updated every month with new facts that are easy to use by the printed, radio and TV media. This section should also be useful to all of you around the world who don’t have time to read long research reports.

On terrorism threat …
• The terrorist attacks of September 11, 2001 cost the insurance industry $35 billion. Eight years after 9/11, what proportion of large US corporations have purchased terrorism insurance?
  Fact: A recent study done with Paul Raschky and Howard Kunreuther, shows that 60% of them had. But what about the 4 out of 10 companies which don’t have that coverage… Not sure what will happen to them if another large-scale attack hit us tomorrow.
• As of 2010, only 9 countries of the 31 member countries of the OECD had developed a terrorism insurance program based on a collaboration between the private sector and the nationla government. They are: Australia, Belgium, Denmark, France, Germany, Netherlands, Spain, the U.S.and the U.K.

On natural disasters …

• The State of Florida has seen its population grow from nearly 2 million in the 1950s to 20 million today. What do you think is the estimated insurance value on the Florida coasts today?
  Fact: It is about $3 trillion. No wonder why Florida might suffer major losses in the aftermath of the next hurricane or flood there.
• Florida is exposed to major flood risks from hurricane (so-called storm surge: storm pushing ocean water inland). Given that the flood risk is clearly known from everyone, how long do you think Floridians keep their flood insurance for?
  Fact: In recent study done with Carolyn Kousky (RFF), we show that the average tenure is … 3 years only! Myopia, myopia…

Feel free to send a request (use CONTACT section) if you are looking for something very specific. Always happy to help.