Reforming Flood Insurance (Just published in Science; July 2011)

THE $1.2 TRILLION US NATIONAL FLOOD INSURANCE PROGRAM IS SET TO EXPIRE ON SEPTEMBER 30, 2011.
IN A NEW ARTICLE PUBLISHED THIS WEEK IN SCIENCE, DR. MICHEL-KERJAN AND HIS COLLEAGUE PROPOSE A NEW WAY TO THINK ABOUT FLOOD INSURANCE.

Insurance and government assistance play central roles in ensuring economic and social resilience in the aftermath of catastrophes in developed countries. Around the globe in the past decade, disasters have led to unprecedented claims payments to insured victims, and government relief to aid the uninsured and the affected communities has risen to historic levels.

Increases in population, property values, and concentration of assets in hazard-prone areas are primary causes. Recent climate studies indicate we should also expect more extreme weather-related events in the future.

The cumulative expected exposure of the U.S. government to catastrophes over the next 75 years could reach $7 trillion. (…)

READ MORE:
RedesigningFloodIns_ScienceMag_20110722-1

ONLINE: http://www.sciencemag.org/content/333/6041/408.full

For request, please contact Dr. Michel-Kerjan at: erwannmk@wharton.upenn.edu