Managing Catastrophic Risk / Howard Kunreuther, Geoffrey Heal.

Format:

Book

Author/Creator:

Kunreuther, Howard.

Contributor:

National Bureau of Economic Research.

Heal, Geoffrey.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18136.

NBER working paper series no. w18136

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

A principal reason that losses from catastrophic risks have been increasing over time is that more individuals and firms are locating in harm's way while not taking appropriate protective measures. Several behavioural biases lead decision-makers not to invest in adaptation measures until after it is too late. In an interdependent world with no intervention by the public sector, it may be economically rational for those at risk not to invest in protective measures. Risk management strategies that involve private-public partnerships that address these issues may help in reducing future catastrophic losses. These may include multi-year insurance contracts, well-enforced regulations, third-party inspections, and alternative risk transfer instruments such as catastrophe bonds.

Notes:

Print version record

June 2012.