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earthquake loss estimation model - IIASA

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SEISMIC RISK MANAGEMENT<br />

Cross-subsidizing Instrument<br />

Elements to consider<br />

Full coverage (all buildings)<br />

Social welfare – balance (taxpayers pay for nontaxpayers)<br />

Insured value (legal base)<br />

Premium collection- City tax collecting system<br />

Cover deductibles for low income housing<br />

Coverage limit (reinsurance market capacity)<br />

Additional coverage (provided by other instruments)<br />

Tax-exempt owners’ claims process

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