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Catastrophe Insurance, Dynamic Premium Strategies, and the ...

Catastrophe insurance , Dynamic Premium strategies , and the Market for Capital1 Thomas Russell Department of Economics Santa Clara University Dwight M. Jaffee Haas School of Business University of California Berkeley Paper prepared for 1995 NAIC/ARIA Symposium Issues in insurance Regulation Published in Alternative Approaches to insurance Regulation, National Association of insurance Commissioners, 1998 1 The authors wish to thank Professors Sandra Chamberlain of Santa Clara University, Ed Omberg of San Diego State University, Howard Kunreuther of the University of Pennsylvania, and Roman Weil of the University of Chicago.

1 1. INTRODUCTION The purpose of this paper is to revisit the problem of the non-insurability of catastrophe risk. The paper focuses on questions surrounding the insurability of …

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