Hurricane Matthew wreaked havoc in Haiti before causing massive damage to parts of the southeastern United States earlier this year. In the Carolinas, flooding damage from the storm was assessed at more than billion. Insurance against a catastrophic event, such as a hurricane or earthquake, often is not purchased by consumers or purchased too late. The most common reason is that homeowners believe the odds are stacked in their favor. Howard Kunreuther, Wharton professor of operations, information and decisions and co-director of the Wharton Risk Management and Decision Processes Center , put together a report that looks at the insurance industry surrounding catastrophic events. He recently appeared on the  Knowledge at Wharton show, part of Wharton Business Radio on SiriusXM channel 111 to talk about what can be done to improve coverage and minimize risks. An edited transcript of the conversation follows.…