Update on activities of the federal insurance administration

The Federal Insurance Administration (FIA) handles the federal programs that offer insurance against losses from flood and crime, most notably the National Flood Insurance Program (NFIP). The NFIP is funded by the income from flood insurance policies (premium payments and a federal policy fee on each policy) that are sold under its auspices. The premiums go into the National Flood Insurance Fund, which is used to pay claims on flood losses during an average loss year. The federal policy fee goes toward the Mitigation Grant Fund and is also used for all program expenses, including all flood hazard identification and mapping and other floodplain management activities. It also includes all insurance operations expenses-those of the FIA and the Write Your Own insurance companies

Estudios de pérdida máxima probable : Una herramienta de mitigación

El presente trabajo se basa en los estudios de Pérdida Máxima Probable o PML (Orobable Maximun Loss) contratados por el Instituto Nacional de Seguros (en adelante INS), para determinar el límite máximo de responsabilidad por concepto de indemnizaciones, mediante de contratos de seguros con cobertura de Temblor o Terremoto, en caso de presentarse un evento sísmico destructivo. Dichos estudios se circunscriben a la Gran Area Metropolitana (GAM), que es la zona de mayor concentración tanto de población como de edificaciones y valores. estos estudios por el área geográfica que abarcan, evalúan distintas amenazas sísmicas a que estarían expuestas varias estructuras importantes como represas, conducciones y casas de máquinas de varias compañias de generación eléctrica y a instalaciones de distribución de hidrocarburos, A manera de antecedentes, el INS es la compañia de seguros estatal en la República de Costa Rica, que mediante la Ley No. 12 del 30 de octubre de 1924 es la encargada de administrar el Monopólio de los Seguros en favor del Estado. El INS cofinanció el año de 1977 el primer estudio de Riesgo Sísmico para Costa Rica, realizado por la Universidad de Stanford, California y financió completamente el Estudio de Seguros contra Teremotos en el año de 1978, mismo que sembró las bases para la posterior realización de estudios de PML (AU)

Utilization of the mortgage finance and insurance industries to induce the private procurement of earthquake insurance : Possible antitrust implications

This study examines the prospects for using the property casualty insurance industry and/or the mortgage finance industry to unduce large numbers of private property owners to purchase earthquake insurance, and to assess whether and to what extent antitrust law violation might be risked in any such process. The study first identifies the general acttitude held in 1980 by the property/casualty insuirance industry with respect to broad-scale underwriting of earthquake insurance for privateproperty. It olso explores the attitude od the mortgage finance industry regarding whether real estate interest held for porpuses of loan security shoud be protected by earthquake insurance. It then illustrates pertinent attitudinal changes that have taken place since 1980, identifies attitudes which are proving resistent to change,and offers reasons for both. It suggests possible approaches that might result in one or both industries affirmatively and significantly influencing the purchase of earthquake insurance by private property owners. It seeks to identify possible outcomes if such influence were to cause large numbers of private property owners to assume the financial responsability for restoration of earthquake - damaged real property. In conclusion, the paper offers an analysis of whether the illustrative examplies given present significant risks of antitrust violations, and assesses whether and to waht degree such risks can be avoided or substantially minimized. (AU)

Flood insurance and relief in the U.S. and Britain

Whithin the broad range od strategies available for hazardreduction, insurance and relief focus on loss redistribution, rather than loss reduction. The use of these measures will affect every part of the flood hazard management process. Successful inplementation requires that they not be treated in isolation from other mitigation measures and thier social context. This paper briefly examines the different roles goverment can adopt in loss redistribution. Two of the seven identified approaches are examined further using the United States and Britain as contrasting examples. At the federal level the United States presents an integrated program based on a national flood insurance scheme, which itself is tied to land-use regulation. Furthermore, the program ios administered by one central agency. The british approach, in contrast, appears un coordinated and adhoc. There are not implicit national flood-related policies or standard procedures for disaster relief. However, flood insurance is generally included in normal commercial and household cover. Relief relies heavily on public appeals. In turn, the success of these appealsvaries dramatically with the disaster. All approaches raise serious questions for industrialized countries about the proper role of goverment, about equity, and about the desirability of special disaster provisions. (AU)

Consequences of earthquake insurance

Rising values, growing investments and populations in terms of number and density, as well as the increasing number of elements at risk which are actually exposed or which represent critical installations because of particular risks associated with them, put an increasing demand on qualified scientific assessments of the consequences of earthquakes. Until now, practically only the physical damage has been considered and not indirect damage or what we shall call consequential loss. These losses very often weigh heavier than direct physical damage; their effect on the society and national economy can be profound and lasting. This paper presents an introduction to assessment technology and insurance issues. (AU)