A Framework for Defining a Role for Insurers in “Uninsurable” Risks: Insights from COVID-19

Photo by Daniel Schludi on Unsplash

Howard Kunreuther and I recently collaborated to develop a decision-making framework for evaluating strategies for dealing with the impacts of risks traditionally considered uninsurable — such as COVID-19.

This article is available here from the NAIC’s Center for Insurance Policy & Research.

While many have viewed insurability as a binary choice with respect to a risk (i.e., insurable or uninsurable), insurability is more appropriately considered on a continuum, ranging from easy-to-insure, such as automobile or life insurance, to difficult-to-insure, such as pandemic, loss of the electrical grid, and other extreme catastrophic risks.

As explained in this article, insurance should be part of a risk management strategy to support businesses, non-profits, and local governments to address the risks they face — even if those risks are difficult to insure by traditional measures. The insurance industry can play an important role either through the continued development of ad hoc state-by-state initiatives, a private-public partnership in which the insurance industry commits its servicing capabilities, or a private-public partnership drawing on both its servicing and risk-bearing capabilities. The recent pandemic offers an opportunity to examine the role of insurance in providing protection and reducing losses from other catastrophic and systemic risks facing society today.

--

--

--

Founder and Managing Member of Centers for Better Insurance, LLC

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Chicago Crime Data Cleaning and EDA

My Unbelievable Move From Data Engineer to Data Scientist Without Any Prior Experience

Dataset論文:RP2K: A Large-Scale Retail Product Dataset for Fine-Grained Image Classification

What I’ve learnt from being a Data Scientist at a Non-Tech Company?

Looking for the Best Post-SQL Scripting Tool

Study: Perfect strangers can identify you using only 3 songs from your playlist

Study: Perfect strangers can identify you using only 3 songs from your playlist

Thinking on Upstart

Learning K-Means Clustering Algorithm

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jason Schupp

Jason Schupp

Founder and Managing Member of Centers for Better Insurance, LLC

More from Medium

The Life of a Gymnast

what is dangerously low blood pressure?

what is dangerously low blood pressure?

Things to know about Bora Bora

School shouldn’t be something you get through.