Graduation Year
2024
Date of Submission
12-2024
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
David bjerk
Terms of Use & License Information
Rights Information
Janeiro M Lettries
Abstract
California’s property and casualty insurance market is facing a crisis that is being driven by climate change, escalating wildfire risks, and regulatory constraints. This literature review explores how the increasing frequency and severity of wildfires have destabilized the state's insurance industry. The crisis is exacerbated by human development in the wildland-urban interface (WUI). by analyzing economic, environmental, and regulatory factors, this literature review identifies systemic challenges such as adverse selection, moral hazard, and market failure. The role of state-based insurance programs like the California FAIR plan, as well as possible risk reduction mechanisms are examined as potential solutions.additionally, this research evaluates advanced risk modeling, behavioral economics, and climate adaptation strategies as a comprehensive approach to stabilizing California Property and casualty insurance market amidst mounting climate risks. The findings suggest the need for integrated solutions; combining regulatory reform, innovative risk management, and community engagement.
Recommended Citation
Lettries, Janeiro, "Climate Change And Catastrophic Risk: An Integrative Literature Review Of California's Property and Casualty Insurance Market" (2024). CMC Senior Theses. 3834.
https://scholarship.claremont.edu/cmc_theses/3834
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.