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  • Photo du rédacteurHélène Dufour

Insuring Correlated Climate Risk: Evidence from Public Reinsurance

Increasing climate risk has made insurance unaffordable or unavailable in many areas. A study on Australia's government-provided, mandatory reinsurance for cyclone damage shows it decreases home insurance premiums by 21% and increases availability by 11%. The policy reduces costs associated with correlated risks and boosts market competition.

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