Article
The Impact of Unexpected Natural Disasters on Insurance Markets
Applied Economics Letters
(2020)
Abstract
In this paper, we examine the impact of unexpected natural disasters on the insurance industry. The industry is exposed to greater risks in states with large populations. Hence, we normalize the unexpected disasters with the population of the state. We find evidence that the total sales of the insurance industry goes up in response to an unexpected disaster. However, we also find evidence that unexpected disasters lead to higher market concentration. This could either be because some insurance firms becoming insolvent or people preferring to purchase insurance from larger firms.
Keywords
- Catastrophic risks,
- insurance market,
- natural disasters
Disciplines
Publication Date
March 29, 2020
DOI
10.1080/13504851.2019.1637508
Citation Information
Ghanshyam Sharma and Kurt W. Rotthoff. "The Impact of Unexpected Natural Disasters on Insurance Markets" Applied Economics Letters Vol. 27 Iss. 6 (2020) p. 494 - 497 ISSN: 1466-4291 Available at: http://works.bepress.com/kurt-rotthoff/27/