Risk in a New Era of Catastrophes - Essay Example

Florida is among the states that depict high probability of facing natural calamities. Insurers, in finding out the states that mostly fall victims of natural disasters, unveiled that Florida is leading in the category. This was via applying exceedance probability (EP) curves besides incorporating prediction models, which used Florida as an illustrative example (Wharton University of Pennsylvania 7). Additional states encompass New York, Texas and S. Carolina who constitute the similar category.

Studies revealed a loss of at least $10billion incurred in the state where future predications showed an increase due to the augmented occurrence of the disasters. Furthermore, due to the current climate alterations, there is an increasing and evident trend of natural calamities, which sometimes their intensities are unpredictable. Global warming has greatly yielded to frequent climate anomalies threatening nations presently (Wharton University of Pennsylvania 4). These encompass hurricanes and tornados that lead to immeasurable property obliteration besides human deaths.

Predictions by some assorted studies indicate that the trend of natural calamities may continue to augment, where the occurrence will be unpredictable, hence finding people unaware. Final stage anticipation regards the number of insured people. Studies indicate that citizens have diverse reasons that may compel them either to buy insurance or refuse to have any coverage. People’s arguments are diverse where some state that the insurance according to their income it is high-priced whereas others do not see the essence, since that is the mandate of a state, which it has to fulfill actively.

Besides, those insured their coverage is insufficient especially when catastrophes occur. Since after the catastrophe, victims require numerous things besides medicine and food, in which agencies have to provide (Wharton University of Pennsylvania