Figure 15-6: Ratio of property/casualty
insurance premiums to catastrophe losses. This measure of exposure ranges from
180:1 in 1974 to 52:1 in 1999, with a minimum value of 27:1 in 1992 (the year
of Hurricane Andrew). For Canada, the high value is 161:1 in 1990, and the low
value is 37:1 in 1999. U.S. premiums are from AM Best and insured natural catastrophe
loss figures are from Property Claims Service (Kunreuther and Roth, 1998). Canadian
premiums are from Insurance Bureau of Canada (2000) and losses are from Emergency
Preparedness Canada (2000). Note that premiums include revenues from nonweather-related
business segments.
