Sample Critical Thinking Paper on Insurance and Mitigation

Insurance and Mitigation

Insurance and mitigation deals with a variety of areas in natural disasters, such as earthquakes, floods and tornadoes. It also decreases with upcoming losses of businesses, education facilities, homes and public services (Botzen, 2013). Risks that are involved in mitigation are avoidable. Insurance companies help individuals through mitigation programs designed to reduce effects of disasters by disheartening actions of any kind that might put a person or assets at risk, such as building in areas that are not suitable for building. This program highly depends on the ability of individuals to identify and know the dangers posed by threats and not expose themselves to such.

Mitigation programs only work if persons or companies are sure that the threat overshadows the benefits. The insurance company uses the risk as punishment to build an attitude of obedience as per the set standards of the insurance company (Azevedo et al, 2008). Insurance companies have a general mitigation measure that includes building norms and codes; public education to reduce the risk, land use regulations, tax incentives and zoning ordinance. These measures help the insurance company in creating guidelines for mitigation.

I do not agree. Insurance companies are not writing mitigation policies in high-risk areas of the countries. As a client, I might have a project that is ongoing in a high risk zone, may be its an area that is always at risk of natural disasters like a tornado. The insurance company has the obligation of advising me accordingly, giving me a choice of continuing with my project or not (Azevedo et al, 2008). The insurance company should create policies that are effective for clients and are up to date with the current standards of insurance mitigation.

References

Azevedo, J., Mendes-Victor, L., Ribeiro, A., & Sousa, O. C. (2008). The 1755 Lisbon Earthquake: Revisited. Berlin: Springer Netherland.

Botzen, W. J. W. (2013). Managing extreme climate change risks through insurance. Cambridge: Cambridge university press.