Publication: Managing Catastrophic Disaster Risks Using Alternative Risk financing and Pooled Insurance Structures

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2001-05
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Published
2001-05
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Abstract
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.
Citation
Pollner, John D.. 2001. Managing Catastrophic Disaster Risks Using Alternative Risk financing and Pooled Insurance Structures. World Bank Technical Paper ; No. 495. © http://openknowledge.worldbank.org/entities/publication/8455615d-9f9d-5ef4-a330-3b305eed555b License: CC BY 3.0 IGO.
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