Individuals are often reluctant to purchase catastrophe risk insurance voluntarily and
keep that coverage over time for reasons that can be partially explained by features of
the descriptive models outlined in the previous subsection.
Failure to protect against low-probability, high-consequence events. As discussed in section
11.3.4.3, only 12 percent of Californians have earthquake insurance. This level has
remained surprisingly stable even after the series of massive earthquakes that occurred
in Haiti, Chile, New Zealand and Japan.
24
Should a ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.