Rationale for insurance companies

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Budalange is a relative flat lowland area lying on the floor of The Great Rift Valley. This place, surrounded by highlands, floods once, twice or even thrice a year, bringing a lot of losses both financial and human life to the residents. Atieno, a resident of Budalange, visited several insurance companies seeking a cover for her crops against flood but was shocked to learn that, there was no single firm that had such a cover or was willing to provide such a cover. What could be rationale for insurance companies failing to offer such a cover?

Reference no: EM133072835

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