In May 2006, a resident of Key West, Florida was to decide on the renewal of its policy to insure against damage hurricane. The policy will cost $ 13,000 per year, $ 5,000 more than he paid in 2005. At the same time, a rich California residents considering buying a "pig note" that offered high returns, but the chance of losing the full investment if severe hurricanes struck the coast of the United States. "Hide
by Eric Stafford, Andre F. Perold Source: Harvard Business School 9 pages. Publication Date: October 23, 2006. Prod. #: 207075-PDF-ENG
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