Who Pays Cost of Mother Nature's Destructive Fury?

By the time its rampage is over, Hurricane Irma could be the most expensive storm in U.S. history. Lloyd’s of London estimates that if it hits Miami and surrounding Dade County, it could cause $131 billion in insured losses -- and history strongly suggests that a great deal more losses won’t be covered by insurers. In 2011, when the force of Mother Nature cost mankind a record $380 billion, less than a third of the damage was covered by insurance.

For starters, insurance is less accessible and less affordable for people in poorer nations. Also, many people expect the government will compensate them for damages in natural disasters. This is one reason why insurance demand is low in earthquake-prone regions in, say, Italy and Turkey.