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SSRN Electronic Journal
Article . 2010 . Peer-reviewed
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Catastrophes and the Demand for Life Insurance

Authors: Stephen G. Fier; James M. Carson;

Catastrophes and the Demand for Life Insurance

Abstract

Prior research suggests that the occurrence of a catastrophe may lead to increases in risk mitigation, risk perception, and the demand for insurance. Given the extensive damage inflicted by major natural disasters, such a phenomenon is intuitive for property risk. However, the literature includes theory and evidence that suggest a broader behavioral perspective, and we therefore examine the possible link between catastrophes and subsequent demand for insurance against mortality risk. Based on U.S. state-level data for the period 1997 through 2008, we provide evidence of a significant positive relationship between catastrophes and life insurance demand. The finding holds both for states directly affected by the event and for neighboring states. In addition, evidence suggests that post-catastrophe life insurance demand is sensitive to the size of the catastrophe.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Average
Average
Average
bronze