Impact of Insurance Industry Practices of Urban Neighborhoods

摘要

The role that insurance plays in the health of urban neighborhoods is examined in this Urban Consortium Information Bulletin. Urban residents and businesses are increasingly asking local governments to help with rising insurance rates, policy cancellations, refusals to renew policies, and alleged redlining. This bulletin provides background information on the insurance industry, including discussions of different types of insurance coverage and companies, insurance pricing and rating practices, the compulsory nature of insurance, and the emergence of Government-mandated insurance plans. High cost and availability are then highlighted as the primary urban insurance issues. Specific problems are described, such as the lack of readily available consumer information on insurance costs and availability. Options available to local governments in assisting consumers in dealing with urban insurance problems are then discussed. They include studies of pricing practice and insurance availability, the development of channels of appeal, affirmative local actions, changes in insurance grading systems, and arson control. Because of the complexity of the urban insurance issue and the consequent need for better information, research initiatives are recommended in the areas of high insurance costs, preparation of consumer guides to insurance, model risk-pooling plans, and improved arson prediction and control procedures. Information resources and a selected bibliography of 41 citations are also provided.