In May 2006, a resident of Key West, Florida had to decide to renew your policy to protect against hurricane damage. Policy would cost $ 13,000 for one year, $ 5,000 more than what you paid in 2005. At the same time, a wealthy resident of California had considered buying a “cat note” that offers high performance, but at the risk of losing the entire investment if hurricanes hit the coasts of the United States.
by
Erik Stafford,
André F. Perold
Source: Harvard Business School
9 pages.
Release Date: October 23, 2006. Prod #: 207075-PDF-ENG
2006 Solution where the risk of hurricanes
Related Case Solutions:









