The catastrophic losses from the combined 2004 and 2005 hurricane seasons resulted in significant price increases and mass non-renewals in the residential property insurance market in Florida. The public outcry to these insurer decisions yielded a highly salient insurance pricing environment. On...

On September 14, 2005, a press report announced the Mississippi Attorney General’s intention to file a suit against the insurance industry forcing homeowners’ insurers to pay flood damage claims despite the standard water damage exclusion. This increase in uncertainty regarding whether...