Demand surge

{
  "id": "MLC-T-INS-001116",
  "term": "Demand surge",
  "field": "Insurance and risk management",
  "definition": "The sudden increase in the cost of labor and materials for repairs and reconstruction in a specific geographic area following a large-scale disaster, such as a hurricane or earthquake. This localized inflation occurs because the high demand for limited resources outstrips the available supply, driving up prices for contractors, building supplies, and related services. Catastrophe risk models incorporate demand surge factors, which can increase total insured losses by 20 percent or more.",
  "url": "https://mlchart.com/terminology/insurance/demand-surge/"
}