@inbook{10.2307/j.ctt5hhn3h.16, ISBN = {9780262516549}, URL = {http://www.jstor.org/stable/j.ctt5hhn3h.16}, abstract = {This chapter discusses the role that risk reduction measures (mitigation) can play in reducing losses from natural disasters and the positive role that insurance could play in encouraging more homeowners to adopt cost-effective protective measures. It also raises a set of challenges for encouraging the adoption of mitigation measures.The challenge society faces today is how to promote investments in cost-effective loss reduction mechanisms while at the same time placing the burden of recovery on those who suffer losses from natural disasters.ยน In theory, insurance is one of the most effective policy tools for achieving both objectives, because it rewards}, bookauthor = {Howard C. Kunreuther and Erwann O. Michel-Kerjan and Neil A. Doherty and Martin F. Grace and Robert W. Klein and Mark V. Pauly}, booktitle = {At War with the Weather: Managing Large-Scale Risks in a New Era of Catastrophes}, pages = {247--268}, publisher = {MIT Press}, title = {Enhancing the Implementation of Risk Reduction Measures}, year = {2009} }