2006 Hurricane Risk
Posted: 22 Sep 2008
Date Written: October 23, 2006
Abstract
SUBJECT AREAS: Insurance, Investment management, Personal finance, Risk, Risk management.
In May 2006, a resident of Key West, FL had to decide whether to renew his policy to insure against hurricane damage. The policy would cost $13,000 for one year, $5,000 more than what he paid in 2005. At the same time, a wealthy California resident was contemplating an opportunity to buy a "cat note" that offered a high yield, but with a chance of losing the full investment if severe hurricanes struck the coastline of the United States.
Suggested Citation: Suggested Citation
Stafford, Erik and Perold, André F., 2006 Hurricane Risk (October 23, 2006). HBS Case No.: 207-075, Available at SSRN: https://ssrn.com/abstract=1270422
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.