One of the best responses to the increased risk of extreme events is to allow insurers to price accurately based on the risk. If coverage is underpriced it sends the wrong signals, which leads to over-development in risky areas. When prices are subsidized or suppressed by regulators (however well-intended)catastrophic losses are more likely. Let the market adjust.
What a complete crock of %&*@ this is!!!!
One of the best responses to the increased risk of extreme events is to allow insurers to price accurately based on the risk. If coverage is underpriced it sends the wrong signals, which leads to over-development in risky areas. When prices are subsidized or suppressed by regulators (however well-intended)catastrophic losses are more likely. Let the market adjust.
Great article.