These comments are a reaction to a panel discussion on Catastrophe Risk Management and Insurance. They point out that some measures intended to provide quick relief and remediation after catastrophic events may have the long term effect of increasing aggregate exposure to such events. In some...

Purpose – The paper aims to examine the practical importance of the finding of Mayers and Smith, that underinvestment is a problem when debt exposed to bankruptcy is part of the financial structure. Design/methodology/approach – The paper examines critically the assumptions underlying the...