@techreport{NBERw14210,
 title = "Long Term Insurance (LTI) for Addressing Catastrophe Risk ",
 author = "Dwight Jaffee and Howard Kunreuther and Erwann Michel-Kerjan",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "14210",
 year = "2008",
 month = "August",
 URL = "http://www.nber.org/papers/w14210",
 abstract = {This paper proposes long-term insurance (LTI) as an alternative to the standard annual homeowners policy using lessons from the mortgage market as a benchmark. LTI has the potential to significantly increase social welfare by reducing insurers’ administrative costs, lowering search costs and uncertainty for consumers and providing incentives for long-term investment in mitigation measures to protect property. A two-period model illustrates situations that would make a long-term contract attractive to both insurers and consumers under competitive market conditions.},
}