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What should naturally happen is that when a high-risk area is flooded, insurance companies pay out losses for the insured, and recalculate their rates for that area. Rates are normally set such that the average cost of a catastrophic event, multiplied by how frequently that catastrophe is expected to occur, is covered by the insurance premiums collected from insured in the area over that span of time, plus a margin for safety and profit.

This is the #market in action.

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