Publication: Using Capital Markets to Develop Private Catastrophe Insurance
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1999-10
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2012-08-13
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The global catastrophe insurance market exhibits inherent cyclical risks. Disaster-prone countries can improve their protection against catastrophic risk and premium volatility by using capital markets to boost the capacity of the private sector to absorb and spread the risks -- both domestically and internationally. This Note proposes two mechanisms for more efficient management of catastrophic risk: pooled insurance coverage supported by liquidity and credit enhancement facilities, and hazard-indexed bonds to securitize risk.
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“Pollner, John D.. 1999. Using Capital Markets to Develop Private Catastrophe Insurance. Viewpoint: Public Policy for the Private Sector; Note No. 197. © World Bank. http://hdl.handle.net/10986/11453 License: CC BY 3.0 IGO.”
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