September 17, 2018 Carolyn Kousky and Brett Lingle* Disaster insurance can be a critical part of household and community resilience. Government disaster aid is rarely enough to cover the costs of the repairs and rebuilding that must be done. After Hurricane Harvey, for example, the average household grant from the Federal Emergency Management…Read More
ESG Initiative News
Oregon Improves Agent Knowledge of Flood Insurance
August 30, 2018 Carolyn Kousky and Jacob Sherman Flood insurance can be confusing. It is generally excluded from homeowners policies. The policy terms are not standard. Premiums and fees vary and change over time. Households may be able to lower costs, but they are not informed about ways to do…Read More
Structure of the Residential Flood Insurance Market
August 2, 2018 Carolyn Kousky, Howard Kunreuther, Brett Lingle*, and Leonard Shabman Since 1968, the NFIP has been homeowners’ only option for flood insurance, but over the past several years, a small private market for residential flood insurance has emerged. While it accounts for less than 5% of all residential…Read More
Must Floodplain Buyouts Decrease Tax Revenue?
July 5, 2018 Helen J.P. Wiley Floods are the costliest natural disaster in the United States. 73% of presidential disaster declarations are for flood-related events. of presidential disaster declarations are for flood-related events. Scholars estimate that flood losses will continue to grow, due to economic development in flood-prone areas, as…Read More
Policy Incubator Receives Julio Castelo Matrán International Insurance Award
June 15, 2018 On June 14th, The Wharton Risk Center’s Policy Incubator received the Julio Castelo Matrán International Insurance Award from Fundación MAPFRE, a Madrid-based non-profit foundation committed to human well-being and social progress. Presented biennially, the €30,000 award recognizes projects that foster economic stability and solidarity through insurance and/or…Read More
Regional Conservation as a Climate Adaptation Tool
May 3, 2018 Helen J.P. Wiley St. Louis City and County are situated in the triangle formed by three rivers: the Missouri, the Mississippi, and the Meramec, with numerous tributaries crisscrossing the landscape. Unsurprisingly, the area is no stranger to floods. Approaches to managing flood risk vary, and include traditional…Read More
WSII and Good Capital Project launch Total Impact Portfolio Challenge
The ESG Initiative at the Wharton School News Wharton Social Impact Initiative and Good Capital Project launch Total Impact Portfolio Challenge The Good Capital Project, in collaboration with the Wharton Social Impact Initiative, is launching the Total Impact Portfolio Challenge – a competition to provide a hands-on opportunity for graduate…Read More Residential Flood Insurance in Puerto Rico
March 29, 2018 Carolyn Kousky and Brett Lingle* Flood insurance in Puerto Rico has attracted media and policymaker attention since Hurricanes Irma and Maria devastated the island in late summer 2017 (see here and here, for example). One reason is the incredibly low take-up rate for flood insurance, which left…Read More
The Importance of Accurate Flood Hazard Maps and Risk-Based Premiums
March 28, 2018 Howard Kunreuther and Marilyn Montgomery Accurate flood hazard maps are needed to set risk-based insurance premiums and to effectively communicate flood risk to families, communities, and other stakeholders. Insurance not only provides financial protection against flood damages, but can also incentivize property owners to undertake cost-effective mitigation…Read More
Reauthorizing the National Flood Insurance Program
March 5, 2018 Howard Kunreuther Many U.S. homeowners are inadequately protected against flood hazards. Relatively few purchase flood insurance and even fewer invest in cost-effective risk-reduction measures. As a result, many are left in financial straits when floods, storms, or hurricanes wreak havoc on their homes. The National Flood Insurance…Read More