Subsidizing risky behavior?

[hurricane]

Kerry Emanuel of the Massachusetts Institute of Technology said that for all practical purposes the problem is demographics and the desire of people to live by the sea.
    
    If a hurricane wanes over the ocean or hits an unpopulated area, there are fewer consequences to life or property. However, when a major hurricane hits a populated area, such as New Orleans, Miami or the Outer Banks, it can be catastrophic.
    
    "By regulating insurance, by holding insurance rates down, we are subsidizing risky behavior. We are underwriting the drive to [build and populate] the coastline. That is the big hurricane problem in the United States," he said.