The Ostrich Paradox boldly addresses a key question of our time: Why are we humans so poor at dealing with disastrous risks, and what can we humans do about it? It is a must-read for everyone who cares about risk.
Daniel Kahneman, winner of the Nobel Prize in Economics and author of Thinking, Fast and Slow
We fail to evacuate when advised. We rebuild in flood zones. We don t wear helmets. We fail to purchase insurance. We would rather avoid the risk of crying wolf than sound an alarm.
Our ability to foresee and protect against natural catastrophes has...

This text focuses on insurance as a tool for addressing risk, as opposed to government benefit programs or involuntary liability using the court system. It examines the public policy and economic nature of insurance, the insurability of risks and applies this to three environmental examples.

A profound and insightful look at how companies prepare for and respond to crises that threaten catastrophic disruption to their operations and even their existence.

Leading experts address questions of public and private roles in assessing, managing, and mitigating major risks to public health and safety in light of the devastation caused by Hurricane Katrina. "This volume provides important insights from the nation's leading experts on how we, as a community and nation, should be rethinking disaster assessment, prevention, and mitigation. Policymakers, legislators, business leaders, and scholars: this is a must-read."--Jon Huntsman, Jr., Governor of Utah "An indispensable resource for all who seek to learn from the unprecedented devastation caused by...

On February 27, 2010, Chile was rocked by a violent earthquake five hundred times more powerful than the one that hit Haiti just six weeks prior. The Chilean earthquake devastated schools, hospitals, roads, and homes, paralyzing the country for weeks and causing economic damage that was equal to 18 percent of Chile's GDP. This calamity hit just as an incumbent political regime was packing its bags and a new administration was preparing to take office. For most countries, it would have taken years, if not decades, to recover from such an event. Yet, only one year later, Chile's economy had...

For all the benefits of modern technology, there is often great public suspicion of, and aversion to, innovations. Amplified by the huge power of the media, public concern about health and ecological risks can grow into what is now recognized as a new and very significant social phenomenon: the stigmatization of new developments. The economic impact and social consequences can be enormous.

Considerable evidence suggests that many people for whom insurance is worth purchasing do not have coverage and others who appear not to need financial protection against certain events actually have purchased coverage. There are certain types of events for which one might expect to see insurance widely marketed are now viewed today by insurers as uninsurable and there are other policies one might not expect to be successfully marketed that exist on a relatively large scale. In addition, evidence suggests that cost-effective preventive measures are sometimes rewarded by insurers in ways that...

Can insurance be used as a means to obtain compliance with environmental policy? Answering this question requires examination of a broad mosaic of academic issues, including current systems available for providing compensation and deterrence, use of contracts (including insurance) as substitutes for tort law, limitations of regulatory policy-making by government agencies, pre-conditions for creation of insurance products, and market mechanisms necessary for insurance to be purchased or sold. The purpose of Managing Environmental Risk Through Insurance is to highlight the...

Can insurance be used as a means to obtain compliance with environmental policy? Answering this question requires examination of a broad mosaic of academic issues, including current systems available for providing compensation and deterrence, use of contracts (including insurance) as substitutes for tort law, limitations of regulatory policy-making by government agencies, pre-conditions for creation of insurance products, and market mechanisms necessary for insurance to be purchased or sold. The purpose of Managing Environmental Risk Through Insurance is to highlight the...

Insurance is an extraordinarily useful tool to manage risk. When it works as intended, it provides financial protection to individuals and a profitable business model for insurance firms and their investors. But it is broadly misunderstood by consumers, regulators, and insurance executives. This book looks at the behavior of individuals at risk, insurance industry decision makers, and policy makers at the local, state, and federal level involved in the selling, buying, and regulating of insurance. It compares their actions to those predicted by benchmark models of choice derived from...