Catastrophes and the Demand for Life Insurance

2010symposiumThis paper by Stephen Fier, which was presented at the Family Financial Security Symposium hosted by CFS in April, 2010, evaluates the relationship between catastrophic events and the demand for life insurance.

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Based on U.S. state-level data for the period 1994 through 2004, we provide evidence of a significant relationship between catastrophes and life insurance demand, both for states directly affected by the event and for neighboring states.