Managing Catastrophic Disaster Risks Using Alternative Risk financing and Pooled Insurance Structures
This report examines the constraints and opportunities in implementing a catastrophe insurance system which can resolve the key obstacles impeding broader implementation of a risk funding approach. The four main pillars in such a strategy involve:...
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| Language: | English |
| Published: |
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/05/1490188/managing-catastrophic-disaster-risks-using-alternative-risk-financing-pooled-insurance-structures http://hdl.handle.net/10986/13961 |
| Summary: | This report examines the constraints and
opportunities in implementing a catastrophe insurance system
which can resolve the key obstacles impeding broader
implementation of a risk funding approach. The four main
pillars in such a strategy involve: 1) strengthening
insurance sector regulatory requirements and supervision; 2)
establishing broad-based pooled catastrophe funding
structures with efficient risk transfer tools; 3) promoting
public insurance policies linked to programs for loss
reduction in the uninsured sectors; and 4) strengthening the
risk assessment and enforcement of structural measures such
as zoning and building code compliance. The report is
structured as follows: chapter 1 examines the
characteristics of the global insurance and reinsurance
market and its links with Caribbean insurers and
policyholders Chapter 2 examines the domestic Caribbean
insurance market structure and institutions, and their
commercial practices Chapter 3 discusses how structural
mitigation and vulnerability reduction measures can prove to
be cost-effective investments that can dramatically reduce
exposure risks on properties. Chapter 4 analyzes the
modalities of risk transfer for potential financial losses.
Chapter 5 demonstrates innovations being developed for
catastrophe risk management. Chapter 6 examines risk
management options. Chapter 7 concludes by demonstrating the
financial feasibility and sustainability of operating and
managing catastrophe risks under a sub-regional pool. |
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