The role of insurers in driving post-hurricane risk reduction investments

Abstract

To protect households and communities from growing losses due to natural disasters and stabilize climate-stressed insurance markets, investments in cost-effective risk reduction must be expanded. Using a unique survey of survivors of one of four U.S. landfalling hurricanes, we investigate the decision to invest in mitigation measures during rebuilding. We find that insurers play a key role in this process by providing both information and financial incentives.