BY WHITNEY RHYMER
2014 White Paper Winner
ITH THE INCREASED concentrations of wealth in catastrophe-prone areas, and forecasts of increased frequency of
extreme catastrophes, property losses from these devastations
are projected to increase over time. Associated with increased
expected catastrophe losses is increased concern about extreme,
"tail end" events, those believed to have less than a one percent
chance of happening. These events are so rare that experience doesn't help to accurately predict them. For a property insurer, these events can be financially debilitating.
As a consequence, admitted insurance companies do not always have the capacity to
assume these correlated and potentially fatal risks.
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Table of Contents for the Digital Edition of WIN Magazine - Summer 2014