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Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsurance and reinsurance marketsand climate risksA...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksAgenda of the talk• Some stylized facts, and figures...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome stylized factsFigure 1: Major natural catastro...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome stylized factsDate Loss event Region Overall l...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksWhat means “climate risks”Climate risks are risks i...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and sanitary impactFigure 2: Disease...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and sanitary impactFigure 3: Risk of...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksAgricultural Insurance: climate and ecosystemsFigur...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksPrimary insuranceInsurance is “the contribution of ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksNotion(s) of insurability: when can we sell/buy ins...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksNotion(s) of insurability: when can we sell/buy ins...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks1. [...] claim occurrence satisfy some randomness p...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks3. [...] the possible maximum loss should not be hu...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks0 2 4 6 8 10−5−4−3−2−10Log−log Pareto plot, hurrica...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks5. [...] the law of large numbers can be usedWithin...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks0 20 40 60 80 1000.000.010.020.030.04Implications f...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks6. [...] no moral hazard and no adverse selectionFr...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks7. [...] there must exist an insurance marketNatura...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance: excess of loss treatiesIn reinsurance ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance programSELF INSURANCEdeductiblePRIMARY ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance: cat excess of loss treatiesThe main di...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksCaptivesPurpose: provide insurance coverage for the...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsurance derivatives (cat bonds)Cat bonds are inte...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksThe trigger is either based on a environmental inde...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks“the government as the ultimate risk manager”Especi...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsuring in a changing environment ?Need for accura...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsuring in a changing environment ?How fast is cli...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risks−10 −5 0 5 10 150.000.020.040.060.080.10Distributio...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and stormsIncrease of wind related l...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and storms1960 1970 1980 1990 200001...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic lossesThe increase ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom Mills, Roth & Lecomte (2005), means increased ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic losses: hurricanes“...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic losses: earthquakes...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom economic to insured lossesThe exposure for an ...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome referencesAase, K. (1999). An equilibrium mode...
Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome referencesKunreuther, H. & Pauly, M.. (2004) N...
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  1. 1. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsurance and reinsurance marketsand climate risksArthur Charpentier, ENSAE/CRESTarthur.charpentier@ensae.frInsurance and Adaptation to Climate ChangeMarch 2007, Paris1
  2. 2. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksAgenda of the talk• Some stylized facts, and figures,• What means “climate risks”: catastrophes and new risks,• Insurance and insurability: what is insurance ?• Insurance against natural catastrophes: insuring large and nonindependentrisks,• Transferring large risks: reinsurance and ART (captives, finite, cat bonds,cat options),• Climate change and insurance in a changing environment: modeling naturalhazard, modeling economic losses, modeling insurance losses.2
  3. 3. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome stylized factsFigure 1: Major natural catastrophes (from Munich Re (2006).)3
  4. 4. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome stylized factsDate Loss event Region Overall losses Insured losses Fatalities25.8.2005 Hurricane Katrina USA 125,000 61,000 1,32223.8.1992 Hurricane Andrew USA 26,500 17,000 6217.1.1994 Earthquake Northridge USA 44,000 15,300 6121.9.2004 Hurricane Ivan USA, Caribbean 23,000 13,000 12519.10.2005 Hurricane Wilma Mexico, USA 20,000 12,400 4220.9.2005 Hurricane Rita USA 16,000 12,000 1011.8.2004 Hurricane Charley USA, Caribbean 18,000 8,000 3626.9.1991 Typhoon Mireille Japan 10,000 7,000 629.9.2004 Hurricane Frances USA, Caribbean 12,000 6,000 3926.12.1999 Winter storm Lothar Europe 11,500 5,900 110Table 1: The 10 most expensive catastrophes, 1950-2005 (from Munich Re(2006).4
  5. 5. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksWhat means “climate risks”Climate risks are risks induced by climate change:• impact on natural catastrophes: frequency and severity, some possiblesolvency problems,• impact on health: “new” risks because of “new” diseases,• impact on agriculture: economic implications of climate change,• ...“climatic risk in numerous branches of industry is more important than the riskof interest rates or foreign exchange risk” (AXA 2004, quoted in Ceres (2004)).5
  6. 6. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and sanitary impactFigure 2: Disease outbreaks during the 1997-98 El Nio.abnormally wet areas, abnormally dry areas, dengue fever, malaria,Rodent-borne: hantavirus pulmonary syndrome and water-borne (cholera).6
  7. 7. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and sanitary impactFigure 3: Risk of malaria transmission (from Epstein (2000)).7
  8. 8. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksAgricultural Insurance: climate and ecosystemsFigure 4: Impact of climate change: repartition of some vegetal species.8
  9. 9. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksPrimary insuranceInsurance is “the contribution of the many to the misfortunes of the few”.Some risk adverse agents (insured) are willing to pay even more than the actualvalue of the (predictable) risk to transfer its consequences to another agent(insurer).9
  10. 10. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksNotion(s) of insurability: when can we sell/buy insurance ?1. judicially, an insurance contract can be valid only if claim occurrencesatisfy some randomness property,2. the “game rule” (using the expression from Berliner (1982), i.e. legalframework) should remain stable in time.Those two notions yield the concept of “legal” insurability,3. the possible maximum loss should not be huge, with respect to the insurer’ssolvency,4. the average cost should be identifiable and quantifiable,5. risks could be pooled so that the law of large numbers can be used(independent and identically distributed, i.e. the portfolio should behomogeneous).These three notions define the concept of “actuarial” insurability.10
  11. 11. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksNotion(s) of insurability: when can we sell/buy insurance ?6. there should be no moral hazard, and no adverse selection,7. there must exist an insurance market, in the sense that offer and demandshould meet, and a price (equilibrium price) should arise.Those two last points define the concept of “economic” insurability, also called“market imperfections” by Rochet (1998).Are natural catastrophes insurable ?11
  12. 12. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks1. [...] claim occurrence satisfy some randomness propertyIn France (law n◦82-600 13thof July 1982), Article 1“sont considérés comme les effets des catastrophes naturelles au sens de laprésente loi, les dommages matériels directs ayant eu pour cause déterminantel’intensité anormale d’un agent naturel, lorsque les mesures habituelles àprendre pour prévenir ces dommages n’ont pu empêcher leur survenance oun’ont pu être prises”.What means “abnormal intensity of natural hazard” ?Is it abnormal to have recurrent floods in some areas easily flooded (in a formerriver channel) ?12
  13. 13. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks3. [...] the possible maximum loss should not be huge4. [...] average cost [...] identifiable and quantifiable,Problem when modeling large claims (industrial fire, business interruption,natural catastrophes,...): extreme value theory framework.The Pareto distribution appears naturally when modeling observations over agiven threshold,F(x) = P(X ≤ x) = 1 −xx0b, where x0 = exp(−a/b)Remark: if −b ≥ 1, then EP(X) = ∞, the pure premium is infinite.Then equivalently log(1 − F(x)) ∼ a + b log x, i.e. for all i = 1, ..., n,log(1 − Fn(Xi)) ∼ a + blog Xi.13
  14. 14. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks0 2 4 6 8 10−5−4−3−2−10Log−log Pareto plot, hurricane lossesLogarithm of the loss amountLogarithmofcumulatedprobabilitesk=5%, slope= − 1.259k=25%, slope= −0.8640 20 40 60 80 1000.51.01.52.0Hill estimator of the tail indexPercentage of bservations exceeding the thresholdTailindex,with95%confidenceintervalFigure 5: Pareto modeling of hurricanes losses (Pielke & Landsea (1998)).14
  15. 15. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks5. [...] the law of large numbers can be usedWithin an homogeneous portfolios (Xi identically distributed), sufficiently large(n → ∞),X1 + ... + Xnn→ E(X). If the variance is finite, we can also derive aconfidence interval (solvency requirement), if the Xi’s are independent,ni=1Xi ∈nE(X) ± 2√nVar(X)risk based capital need with probability 99%.Nonindependence implies more volatility and therefore more capitalrequirement.15
  16. 16. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks0 20 40 60 80 1000.000.010.020.030.04Implications for risk capital requirementsAnnual lossesProbabilitydensity99.6% quantile99.6% quantileRisk−based capital needRisk−based capital needFigure 6: Independent versus non-independent claims, and capital requirements.16
  17. 17. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks6. [...] no moral hazard and no adverse selectionFrequency of avalanches, per departement Frequency of floods, per departementFigure 7: The frequency of “arrêté Cat Nat” (avalanches and flood).17
  18. 18. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks7. [...] there must exist an insurance marketNatural catastrophe risk is a low probability risks, hardly predictable.Consider the following example, from Kunreuther & Pauly (2004):“my dwelling is insured for $ 250,000. My additional premium for earthquakeinsurance is $ 768 (per year). My earthquake deductible is $ 43,750... The moreI look to this, the more it seems that my chances of having a covered loss areabout zero. I’m paying $ 768 for this ?” (Business Insurance, 2001).• annual probability of an earthquake in Seattle 1/250 = 0.4%,• actuarial implied probability 768/(250, 000 − 43, 750) ∼ 0.37%It is a fair price18
  19. 19. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance: excess of loss treatiesIn reinsurance excess of loss (stop loss) treaties, the reinsurer undertakes theupper layer of the risk, after a certain attachment point.INSUREDINSURERREINSURER0.0 0.2 0.4 0.6 0.8 1.005101520253035The insurance approach (XL treaty)EventLosspereventFigure 8: The XL reinsurance treaty mechanism.19
  20. 20. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance programSELF INSURANCEdeductiblePRIMARY INSURANCEpriorityREINSURANCEupper limitReinsurance programSELF INSURANCEdeductiblePRIMARY INSURANCEpriorityREINSURANCEupper limitFIRST LAYERSECOND LAYERTHIRD LAYERReinsurance programSELF INSURANCEdeductiblePRIMARY INSURANCEpriorityREINSURANCEupper limitFIRST LAYERSECOND LAYERTHIRD LAYERFigure 9: Evolution of reinsurance programs.20
  21. 21. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksReinsurance: cat excess of loss treatiesThe main difficulty is to define precisely the event or a single natural event.The insurance approach (CatXL treaty)0.0 0.2 0.4 0.6 0.8 1.0010203040506070The insurance approach (CatXL treaty)EventLosspereventFigure 10: The Cat XL reinsurance treaty mechanism.21
  22. 22. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksCaptivesPurpose: provide insurance coverage for their owners (cf self-insurance).Enhances the capability to purchase excess insurance and provides a directaccess to the reinsurance marketplace.INSUREDINSURERREINSURERFigure 11: The captive mechanism.22
  23. 23. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsurance derivatives (cat bonds)Cat bonds are interesting since they help to increase capacity in the market,but are expensive to set up.INSUREDINSURERSPVINVESTORS0.0 0.2 0.4 0.6 0.8 1.005101520253035The securitization approach (Cat bond)EventLosspereventFigure 12: The securitization mechanism, parametric triggered cat bond.23
  24. 24. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksThe trigger is either based on a environmental index (Richter index,precipitation levels, windspeeds, temperatures...) or a claim based index.Insurance derivatives (cat options)Those indices can also be used for options.Exchange-traded catastrophe options are standardized contracts bought andsold through an organized market.“Unlike traditional options, catastrophe options give the purchaser the right toobtain a cash payment if a specified index of catastrophe losses reaches aspecified level - the strike price”.Example CBOT’s PCS Catastrophe Insurance OptionsThose options are hardly priced (arbitrage pricing cannot be used).For index based products (risky bonds or options), there is an additional risk ofnoncorrelation between the physical and the loss triggers (rarely a perfecthedge).24
  25. 25. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks“the government as the ultimate risk manager”Especially in France, where there is an unlimited government guarantee forcatastrophes provided through the Caisse Centrale de Réassurance (nationalprogram covering floods, subsidence, earthquakes and avalanches).Also the case in other countries in Europe (Spain, Norway, Switzerland) and inthe U.S. (for flood risks).Remark: some risk financing instruments can also be considered (catastrophetax, government debt instruments, international loans), but it is not insuranceanymore.25
  26. 26. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsuring in a changing environment ?Need for accurate loss models based on environmental series.Classical statistical problem of forecasting.EVENT SIMULATIONNATURAL HAZARDEXPOSUREECONOMIC LOSSESINSURED LOSSESFREQUENCYSEVERITYGEOGRAPHICAL AND LOCALCHARACTERISTICS, CONSTRUCTIONPOLICIES IN FORCECOVERAGE, EXCLUSIONS26
  27. 27. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksInsuring in a changing environment ?How fast is climate changing ? perhaps quicker than previously anticipated.1000 1200 1400 1600 1800 2000−0.6−0.4−0.20.00.20.4Average temperature, from 1000 to 2000YearAverageannualtemperature,northernhemisphereCrowley & Lowery (2000)Esper et al. (2003)Briffa et al. (1998)Jones et al. (2001)Mann (1999)Mann & Jones (2003)−10−505101520Daily Minimum Temperatures in ParisdateTemperature(°C)1900 1920 1940 1960 1980 2000Figure 13: Global warming and climate change: modeling temperature27
  28. 28. Arthur CHARPENTIER - Insurance and reinsurance market and climate risks−10 −5 0 5 10 150.000.020.040.060.080.10Distribution of winter temperature in ParisWinter average temperature1980−20001900−192015.5% of days below 0°C8.5% of days below 0°C10 15 20 25 30 350.000.020.040.060.080.100.12Distribution of summer temperature in ParisSummer average temperature1980−20001900−19202.4% of days over 25°C5.2% of days over 25°CFigure 14: Summer and winter temperature in Paris, 1900-1920 versus 1980-2000.28
  29. 29. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and stormsIncrease of wind related losses from hurricanes in the U.S., typhoons in Japanand storms in Europe.1850 1900 1950 20000510152025Number of hurricanes, per year 1851−2006YearFrequencyofhurricanesFigure 15: Number of hurricanes and major hurricanes per year.29
  30. 30. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksClimate change and storms1960 1970 1980 1990 20000100200300400Number of tornados in the US, per monthYearNumberoftornadosFigure 16: Number of tornadoes (from http://www.spc.noaa.gov/archive/).30
  31. 31. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic lossesThe increase in population and infrastructure densities in urban centers andvulnerable regions multiply the size of maximum potential losses.One has to look for all possible effects of climate change (negative and positive).31
  32. 32. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom Mills, Roth & Lecomte (2005), means increased losses, andreduced losses,peril property property liabilityexamples of projected impact hazard industrial auto business health lifemarine interrup.Higher maximum temperatures, more hot dayshospitalizations, death, serious illness heatwavesoil subsidence subsidencedecreased ice in maritime lanes float iceincrease roadway accident (reaction time) accidentsincreased electric cooling demand power outageHigher minimum temperatures, less cold daysdecrease cold related mortality coldwaveextend activity of some pests infestationavalanche risk avalanchepermasfrost melt subsidenceIncreased summer dryingdamage to building foundations subsidencedecrease water resource quantity droughtincrease risk of wildfire wildfire32
  33. 33. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic losses: hurricanes“the Saffir-Simpson Scale is designed to measure the potential damage of ahurricane to man-made structures [...] if the speed of the hurricane is above 156mph (category 5), then the damage to a building will be serious no matter howwell it’s engineered.”category sustained central storm relative potential exampleswinds pressure surge destructioncategory 1 118 to 153 km/h >980 1.2 to 1.5 m 1 Stan (2005)category 2 154 to 177 km/h 965-679 1.8 to 2.4 m 10 Juan (2003)category 3 178 to 210 km/h 945-964 2.7 to 3.7 m 50 Ivan (2004)some structural damage to small residences and utility buildings, Jeanne (2004)with a minor amount of curtainwall failures Beta (2005)category 4 210 to 249 km/h 920-944 4.0 to 5.5 m 100 Floyd (1999)extensive curtainwall failures with some complete roof structure failure Charley (2004)on small residences, terrain may be flooded well inland Dennis (2005)category 5 More than 249 km/h <920 over 5.5 m 250 Emily (2005)complete roof failure on many residences and industrial buildings Katrina (2005)flooding causes major damage to lower floors, near the shoreline Rita (2005)massive evacuation of residential areas may be required Wilma (2005)Table 2: The Saffir-Simpson hurricane scale.33
  34. 34. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom natural events to economic losses: earthquakesRichter’s scale quantifies the size of an earthquake the epicenter.Medvedev-Sponheuer-Karnik or Mercalli are related to earthquake occurrences,degree descriptionThe Mercalli scalecategory 7 (very strong) difficult to stand, furniture broken, damage negligible in building of good designcategory 8 (destructive) damage slight in specially designed structurescategory 9 (ruinous) general panic and damage considerable in specially designed structurescategory 10 (disastrous) some well built structures destroyedcategory 11 (very disastrous) few masonry structures remain standing, bridges destroyedcategory 12 (catastrophic) total damage, almost everything is destroyedThe Medvedev-Sponheuer-Karnik scalecategory 7 (very strong) most people are frightened and try to run outdoorscategory 8 (damaging) many people find it difficult to stand, even outdoors, furniture overturnedcategory 9 (destructive) general panic, people thrown to the ground, substandard structures collapsecategory 10 (devastating) masonry buildings destroyed, infrastructure crippled. Massive landslidescategory 11 (catastrophic) most buildings and structures collapsecategory 12 (very catastrophic) all surface and underground structures completely destroyedTable 3: The Mercalli and Medvedev-Sponheuer-Karniks scales.34
  35. 35. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksFrom economic to insured lossesThe exposure for an insurance company is difficult to model.The CRESTA was set up by the insurance industry in 1977, and CRESTAzones have been defined, related to insurance exposure.Figure 17: The use of CRESTA zones to model exposure, in Montreal.35
  36. 36. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome referencesAase, K. (1999). An equilibrium model of catastrophe insurance futures and spreads. Geneva Papers on Risk andInsurance Theory, 24, 29-96.Association of British Insurers (2005). Financial risks of climate change. http://www.abi.org.uk/climatechange,Berliner, B. (1982). Limits of insurability of risks. Prentice-Hall.Ceres (2004). Investor Guide to Climate Risk Action Plan and Resource for Plan Sponsors, Fund Managers andCorporations. http://www.ceres.org/Christensen, C.V. & Schmidli, H. (2000). Pricing catastrophe insurance products based on actually reported claims.Insurance: Mathematics and Economics, 27, 189-200.Cossette, H., Duchesne, T. & Marceau, E. (2004). Modeling catastrophes and their impact on insurance portfolios.North American Actuarial Journal, 4, 1-22.Crichton, D. (2005). Insurance and Climate Change. Conference on climate change, extreme events, and coastalcities.Cummins, J.D. & Geman, H. (1995). Pricing catastrophe insurance futures and call spreads. Journal of FixedIncome, 4, 46-57.Dlugolecki, A. (2001). Climate Change and Insurance. Chartered Insurance Institute Research Report.Epstein, P.R.. (2000). Is Global Warming Harmful to Health? Scientific American , August, 50-57.Froot, K.A. (1999). The financing of catastrophe risk. University of Chicago Press.Geman, H. & Yor, M. (1997). Stochastic time changes in catastrophe option pricing. Insurance: Mathematics andEconomics, 21, 185-193.Harrington, S. & Niehaus, G. (1999). Basic risk with PCS catastrophe insurance derivative contracts. Journal ofRisk and Insurance, 66, 205-230.Höppe, P. & Pielke, R. (2006). Workshop on climate change and disaster losses.36
  37. 37. Arthur CHARPENTIER - Insurance and reinsurance market and climate risksSome referencesKunreuther, H. & Pauly, M.. (2004) Neglecting Disaster : Why donŠt People Insure. Against Large Losses ?Journal of Risk and Uncertainty, 28, 5-21.Lloyd’s (2006). 360 Risk Project. http://www.lloyds.com/News_Centre/360_risk_project/Mills, E., Lecomte, E. & Peara, A. (2001). US Insurance industry perspectives on global climate change.University of Californy.Mills, E., Roth, R.J. & Lecomte, E. (2005). Availability and affordability of insurance under climate change: agrowing challenge for the US. http://www.ceres.org/.Monti, A. (2002). Environmental risks and insurance: a comparative analysis of the rile of insurance in themanagement of environment-related risks. OECD Report.Moss, D.A. (2004). When All Else Fails: Government As the Ultimate Risk Manager. Harvard University Press.Munich Re (2006). Great natural disasters. http://www.munichre.com/pages/03/georisks/O’Brien, T. (1997). Hedging strategies using catastrophe insurance options. Insurance: Mathematics andEconomics, 21, 153-162.Pielke, R.A. & Landsea, C.W. (1998). Normalized Hurricane Damages in the United States: 1925-1995. Weatherand Forecasting, 13, 351-361.Rochet, J.C. (1991). Assurabilité et Financement des Risques, in Encyclopédie de l’Assurance, Économica.Swiss Re (2003). Natural catastrophes and reinsurance. http://www.swissre.com/.37
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