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• W2559590945 abstract "A BSTRACT In the aftermath of a natural catastrophe, there is increased demand for skilled reconstruction labor, which leads to significant increases in reconstruction labor wages and hence insured losses. Such inflation effects are known as “Demand Surge” effects. It is important for insurance companies to properly account for these effects when calculating insurance premiums and determining economic capital. We propose an approach to quantifying the Demand Surge effect and present an econometric model for the effect that is based on 192 catastrophe events in the United States. Our model explains more than 75 percent of the variance of the Demand Surge effect and is thus able to identify the key drivers of the phenomenon." @default.
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• W2559590945 date "2016-11-28" @default.
• W2559590945 modified "2023-10-08" @default.
• W2559590945 title "Insured Loss Inflation: How Natural Catastrophes Affect Reconstruction Costs" @default.
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• W2559590945 doi "https://doi.org/10.1111/jori.12134" @default.
• W2559590945 hasPublicationYear "2016" @default.
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