I think one very important consideration is that the post-peril risk should be as low as possible, for the reasons described in this paper by Martin Weitzman. You consider a value of 0.01 % per century, but it maight be much lower (even if it is unlikely).
Great post, David!
I think one very important consideration is that the post-peril risk should be as low as possible, for the reasons described in this paper by Martin Weitzman. You consider a value of 0.01 % per century, but it maight be much lower (even if it is unlikely).