Barometer of Risk

“The world seems awash in risk: nuclear rumblings in North Korea, bloodshed in Iraq, bird-flu scares, terrorism, hurricanes, corporate scandals, political uncertainty and more. But one barometer of risk — the price of insurance — indicates that many facets of life and business are getting less risky.” 

Quoted from ”Cheaper Insurance Rates Point To Decline in Life, Business Risks,” written by Lian Pleven in the Wall Street Journal on November 6, 2006. 

Some other interesting quotes below:  

”Insurance is a hedge against risk, and in many areas it has gotten cheaper lately.” ”Americans “are getting better at controlling risk,” says Richard Zeckhauser, a professor of political economy at Harvard University. “In general, technological advance has made the world a safer place.”  ””According to a survey by insurance broker Marsh Inc., a unit of Marsh & McLennan Cos., the cost of terrorism coverage in the U.S. fell last year compared with 2004. Aon Corp., another broker, says the price has fallen sharply since the federal government created a backstop program in 2002 to help insurers manage their losses from any terrorism claims, but that rates have risen slightly over the past year.”  ”Incidents of terrorism and hurricanes are less predictable than more routine events like car crashes. The added uncertainty makes them harder for insurers to price.”