Further, the effect of financial deregulation on the insurance industry's ability to provide protection for natural hazards should be investigated and used to guide public policy. In addition, the extent of disruption and personal injuries from natural disasters is not well known. Walter Hays said that the vulnerability of people and property to earthquakes changes as seismic processes, and the location, density, and housing of people change. Earthquake losses are predicted by current seismic data and the property and population that are vulnerable. Understanding the earthquake cycle and built environment trends helps to make the Black Box more transparent and loss estimates less uncertain.
Some earthquakes have long reoccurrence periods.
The New Madrid fault is a good example where the maximum possible earthquake may have not yet been experienced. The earthquake cycle can be better understood by defining the maximum credible earthquake to the fault and disaggregating the damage to a single building or house. Following the presentations, open discussion ensued. Disaster insurance is difficult to sell if the homeowner perceives that the public sector will provide financial relief. This is an example of a conflict in government policy and a lack of education.