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I don't know if they look so far ahead? Ie if insurance is just for a few years at a time at once? There's a paper that proposes long term property insurance,
by Gravityloss 8y ago
I don't know if they look so far ahead? Ie if insurance is just for a few years at a time at once?
There's a paper that proposes long term property insurance, which makes it seem the one year contract is the standard?
http://opim.wharton.upenn.edu/risk/library/J2010(JIR)_DJ,HK,EMK_LongTermProptyIns.pdf http://opim.wharton.upenn.edu/risk/library/J2010(JIR)_DJ,HK,...
- deelowe 8y agoAhh. That makes sense. So insurance is more interested in the potential for a claim within the current policy cycle and not the long term risk.
- Bartweiss 8y agoThat, and in some cases highly-correlated risks get dismissed altogether. If your neighborhood floods, that's a bunch of insurance claims, but if your city floods, that's potentially a bailout, bankruptcy, or contract exemption for the insurer. (In some cases, like sea level rise in Florida, there's already an understanding that the state is subsidizing insurance that wouldn't be available otherwise.) So I could definitely imagine some value for a buyer-focused service that carries information about all known risk, not just covered/unsubsidized risk.