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The cat insurance puzzle refers to the low or missing demand for high-severity-low-probability events, which is surprising given the high demand for low-value insurance products such as cell phone insurance policies.
While the loss of a cellphone is usually an event of no or low consequence, the loss of a home to a family or a large property loss to a business owner can potentially be fatal.
This talk will evaluate and discuss underlying reasons for this puzzle and suggest solutions for practice.
https://2020.riskawarenessweek.com/talks/dr-annette-hofmann/
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