CATASTROPHE RISK PROJECT

RMI faculty members - Martin Grace, Robert Klein and Zhiyong Liu - have stepped up their research activities on catastrophe risk and insurance as a consequence of increased public attention and recent issues following the 2004-2005 hurricane seasons. RMI researchers have conducted considerable research on catastrophe risk and insurance issues since the mid-1990s. This research has resulted in numerous working papers and publications with a particular focus on how property insurance markets function in the face of the increased risk of natural disasters.

In the latest wave of research activities, RMI faculty members are participating in a disaster risk project coordinated by the Wharton School, as well as conducting additional studies coordinated by the Center. Current study topics include:

• The supply of and demand for homeowners insurance with catastrophe risk
• Factors influencing insurers' decisions regarding withdrawing or retrenching from hurricane-prone insurance markets
• The structure, conduct and performance of affected insurance markets
• The effects of regulation and the political economy of disaster risk
• An evaluation of alternative policy options to address catastrophe risk and insurance needs.

The initial results of these study efforts can be found in working papers and articles posted or cited on the Center's website. More papers and publications will be forthcoming as the current research activities progress. Persons, firms or organizations interested in supporting the Center's catastrophe risk research should contact Robert Klein at rwklein@gsu.edu or 404-651-4031.