Environmental risk insurance costs

Under certain conditions, individuals can share the costs of those residual risks through insurance contracts. In this chapter, 1 describe the conditions in which people will agree to share risks and what strategies ameliorate insurance market failures when those conditions do not exist. Generally, environmental insurance markets face many problems and have nof worked well. 

If risk assessment and analysis are frequently dealt with by insurance companies in the case of sudden risk, the extension of this type of analysis to gradual risk and to cost-benefit analysis of the regulations or norms to be adopted or enforced in environmental problems is a rather misleading procedure. 

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