Disasters in the United States: Frequency, Costs, and Compensation

Description

Disasters are increasing in frequency throughout the world. In 2015 in the United States, the Federal Emergency Management Agency (FEMA) recorded a total of 70 natural disasters with 43 of those receiving major disaster declarations. In contrast, 13 major disasters were declared in 1953. As a result, the costs and other complex issues associated with mitigation efforts of disasters is drawing increased attention from economists, insurers, and policymakers. Brusentsev and Vroman address six key disaster-related questions: 1. What do we know about disasters in the United States? 2. Has there been an increase in their frequency? 3. What are the financial costs associated with disasters? 4. What compensation, including social assistance, is available to survivors? 5. Where is each type of disaster likely to occur? 6. How can disasters be mitigated? Their statistical analysis shows that declarations of disasters has increased at a rate much faster that the rate of population growth, that disaster risks of climate change tend to be concentrated in urban areas, and that there is a statistically significant association between disasters and the increase in global temperature.