Insurability of Hazardous Materials Activities
Document Type
Article
Publication Date
8-1988
ISSN
0883-4237
Publisher
Institute of Mathematical Statistics
Language
en-US
Abstract
Insurance is essential to technologic advance and also serves other important social functions. "Insurance market failures" must therefore be evaluated so that appropriate remedial actions can be taken by private insurers, and in some instances, by government. The recent insurance crisis for companies producing and using hazardous materials is examined, with particular attention given to six factors: new tort liability rules, judicial interpretation of insurance contracts, declining interest rates, reluctant reinsurers, government policies based on "new federalism" concepts and inadequate attention to risk analysis. The importance of improving risk analysis techniques to promote their use by insurers is determined to be the fundamental reform needed to restore the private insurance function.
Recommended Citation
Michael S. Baram,
Insurability of Hazardous Materials Activities
,
in
3
Statistical Science
339
(1988).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/1767
