Sovereign Natural Disaster Insurance For Developing Countries

Author : Francis Ghesquiere
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 26 pages
Book Rating : 4./5 ( download)

DOWNLOAD NOW!

Download or read book Sovereign Natural Disaster Insurance for Developing Countries: A Paradigm Shift in Catastrophe Risk Financing written by Francis Ghesquiere and published by World Bank Publications. This book was released on 2012 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic theory suggests that countries should ignore uncertainty for public investment and behave as if indifferent to risk because they can pool risks to a much greater extent than private investors can. This paper discusses the general economic theory in the case of developing countries. The analysis identifies several cases where the government's risk-neutral assumption does not hold, thus making rational the use of ex ante risk financing instruments, including sovereign insurance. The paper discusses the optimal level of sovereign insurance. It argues that, because sovereign insurance is usually more expensive than post-disaster financing, it should mainly cover immediate needs, while long-term expenditures should be financed through post-disaster financing (including ex post borrowing and tax increases). In other words, sovereign insurance should not aim at financing the long-term resource gap, but only the short-term liquidity need.

Author : Olivier Mahul
Publisher :
ISBN 13 :
Total Pages : 26 pages
Book Rating : 4.67/5 ( download)

DOWNLOAD NOW!

Download or read book Sovereign Natural Disaster Insurance for Developing Countries written by Olivier Mahul and published by . This book was released on 2016 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic theory suggests that countries should ignore uncertainty for public investment and behave as if indifferent to risk because they can pool risks to a much greater extent than private investors can. This paper discusses the general economic theory in the case of developing countries. The analysis identifies several cases where the government's risk-neutral assumption does not hold, thus making rational the use of ex ante risk financing instruments, including sovereign insurance. The paper discusses the optimal level of sovereign insurance. It argues that, because sovereign insurance is usually more expensive than post-disaster financing, it should mainly cover immediate needs, while long-term expenditures should be financed through post-disaster financing (including ex post borrowing and tax increases). In other words, sovereign insurance should not aim at financing the long-term resource gap, but only the short-term liquidity need.

Author : J. David Cummins
Publisher : World Bank Publications
ISBN 13 : 0821377361
Total Pages : 299 pages
Book Rating : 4.69/5 ( download)

DOWNLOAD NOW!

Download or read book Catastrophe Risk Financing in Developing Countries written by J. David Cummins and published by World Bank Publications. This book was released on 2009 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'Catastrophe Risk Financing in Developing Countries' provides a detailed analysis of the imperfections and inefficiencies that impede the emergence of competitive catastrophe risk markets in developing countries. The book demonstrates how donors and international financial institutions can assist governments in middle- and low-income countries in promoting effective and affordable catastrophe risk financing solutions. The authors present guiding principles on how and when governments, with assistance from donors and international financial institutions, should intervene in catastrophe insurance markets. They also identify key activities to be undertaken by donors and institutions that would allow middle- and low-income countries to develop competitive and cost-effective catastrophe risk financing strategies at both the macro (government) and micro (household) levels. These principles and activities are expected to inform good practices and ensure desirable results in catastrophe insurance projects. 'Catastrophe Risk Financing in Developing Countries' offers valuable advice and guidelines to policy makers and insurance practitioners involved in the development of catastrophe insurance programs in developing countries.

Author : Aliona Cebotari
Publisher :
ISBN 13 : 9781513525891
Total Pages : 34 pages
Book Rating : 4.91/5 ( download)

DOWNLOAD NOW!

Download or read book Natural Disaster Insurance for Sovereigns: Issues, Challenges and Optimality written by Aliona Cebotari and published by . This book was released on 2020-01-17 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Natural disasters are a source of economic risks in many countries, especially in smaller and lower-income states, and ex-ante preparedness is needed to manage the risks. The paper discusses sovereign experience with disaster insurance as a key instrument to mitigate the risks; proposes ways to judge the adequacy of insurance; and considers ways to enhance its use by vulnerable countries. The paper especially aims to inform policy decisions on disaster insurance. Through simulations of natural disasters and various insurance options, we find that sovereign decisions on optimal risk transfer involve balancing trade-offs between growth and debt, based on government risk preferences and country risk exposure. The choice of optimal insurance for smaller countries turns out to be more constrained by cost considerations due to their higher exposure, likely resulting in underinsurance; donor grants could help them achieve a more optimal protection. We also find that optimal insurance packages are those that are least costly relative to expected payouts (i.e. have the lowest insurance multiple), which are also the packages that insure less severe (more frequent) disasters.

Author : Eugene N. Gurenko
Publisher : Routledge
ISBN 13 : 1136535446
Total Pages : 97 pages
Book Rating : 4.44/5 ( download)

DOWNLOAD NOW!

Download or read book Climate Change and Insurance written by Eugene N. Gurenko and published by Routledge. This book was released on 2015-02-13 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: Climate change brings about a new set of major economic risks arising from changing weather patterns, extreme weather events and rising sea levels. Most at risk are developing countries who, despite considerable post-disaster donor aid, have been bearing the major brunt of disaster-related losses. One adaptation solution that is rapidly gaining the support of countries and international donors is a risk transfer to the global reinsurance and capital markets. This volume, a special issue of the journal Climate Policy, explores the role that insurance-based mechanisms can play in helping developing countries prepare for climate change. It offers a unique and comprehensive perspective on the potential role of insurance solutions in global adaptation to climate change and attempts to engender debate on the role of insurance in reducing global emissions and encouraging climate-friendly corporate behaviour.

Author : OECD
Publisher : OECD Publishing
ISBN 13 : 9264009957
Total Pages : 424 pages
Book Rating : 4.50/5 ( download)

DOWNLOAD NOW!

Download or read book Policy Issues in Insurance Catastrophic Risks and Insurance written by OECD and published by OECD Publishing. This book was released on 2005-07-06 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt: These conference proceedings present academic analysis, country reports, and financial/insurance company assessments on how to handle losses caused by large-scale catastrophes including terrorism and atmospheric perils.

Author : Asian Development Bank
Publisher : Asian Development Bank
ISBN 13 : 9292622668
Total Pages : 93 pages
Book Rating : 4.64/5 ( download)

DOWNLOAD NOW!

Download or read book Assessing the Enabling Environment for Disaster Risk Financing written by Asian Development Bank and published by Asian Development Bank. This book was released on 2020-06-01 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: Disasters damage and destroy infrastructure and disrupt economic activities and services, potentially delaying long-term development and hampering efforts to reduce poverty in the region. Countries require a strong enabling environment for disaster risk financing to ensure the timely availability of post-disaster funding. This report presents a comprehensive diagnostics tool kit that countries can apply to assess the financial management of disaster risk. The framework examines the state of the enabling environment and provides a basis to enhance financial resilience with insurance and other risk transfer instruments. It incorporates lessons from the country diagnostics assessments for Fiji, Nepal, Pakistan, and Sri Lanka that made use of the tool kit and methodology.

Author : Daniel Jonathan Clarke
Publisher : Oxford University Press
ISBN 13 : 0198785577
Total Pages : 154 pages
Book Rating : 4.76/5 ( download)

DOWNLOAD NOW!

Download or read book Dull Disasters? written by Daniel Jonathan Clarke and published by Oxford University Press. This book was released on 2016 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic losses from disasters are now reaching an average of US$250--$300 billion a year. In the last 20 years, more than 530,000 people died as a direct result of extreme weather events; millions more were seriously injured. Most of the deaths and serious injuries were in developing countries. Meanwhile, highly infectious diseases will continue to emerge or re-emerge, and natural hazards will not disappear. But these extreme events do not need to turn into large-scale disasters. Better and faster responses are possible. The authors contend that even though there is much generosity in the world to support the responses to and recovery from natural disasters, the current funding model, based on mobilizing financial resources after disasters take place, is flawed and makes responses late, fragmented, unreliable, and poorly targeted, while providing poor incentives for preparedness or risk reduction. The way forward centres around reforming the funding model for disasters, moving towards plans with simple rules for early action and that are locked in before disasters through credible funding strategies while resisting the allure of post-disaster discretionary funding and the threat it poses for those seeking to ensure that disasters have a less severe impact. -- Provided by publisher.

Author : Akiko Kamesaka
Publisher : Springer Nature
ISBN 13 : 9811390053
Total Pages : 124 pages
Book Rating : 4.50/5 ( download)

DOWNLOAD NOW!

Download or read book Governance, Risk and Financial Impact of Mega Disasters written by Akiko Kamesaka and published by Springer Nature. This book was released on 2019-11-23 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses researchers, practitioners, and policy makers interested in understanding the financial implications of mega-disaster risks as well as in seeking possible solutions with regard to governance, the allocation of financial risk, and resilience. The first part of this book takes the example of Japan and studies the impact of mega earthquakes on government finance, debt positions of private household and businesses, capital markets, and investor behavior by way of economic modeling as well as case studies from recent major disasters. In Japan, the probability of a mega earthquake hitting dense agglomerations is very high. Like other large-scale natural disasters, such events carry systemic risks, i.e., they can trigger disruptions endangering the stability of the social, economic, and political order. The second part looks at the experience of the Japanese government as a provider of disaster-risk finance and an active partner in international collaboration. It concludes with an analysis of the general characteristics of systemic risk and approaches to improve resilience.

Author : International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
ISBN 13 : 149832102X
Total Pages : 55 pages
Book Rating : 4.20/5 ( download)

DOWNLOAD NOW!

Download or read book Building Resilience in Developing Countries Vulnerable to Large Natural Disasters written by International Monetary Fund. Strategy, Policy, & Review Department and published by International Monetary Fund. This book was released on 2019-06-26 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses how countries vulnerable to natural disasters can reduce the associated human and economic cost. Building on earlier work by IMF staff, the paper views disaster risk management through the lens of a three-pillar strategy for building structural, financial, and post-disaster (including social) resilience. A coherent disaster resilience strategy, based on a diagnostic of risks and cost-effective responses, can provide a road map for how to tackle disaster related vulnerabilities. It can also help mobilize much-needed support from the international community.