Reinsurance and Stability : Catering to the Needs of Countries at Different Stages of Development

Against the backdrop of increasing losses from natural catastrophes, this paper analyzes the role of reinsurance. In this regard, we distinguish between two dimensions of stability: financial and economic. This distinction helps us identify the differing needs of high- and low-income countries in terms of reinsurance regulation and data requirements. These can be inferred from the scheme we introduce to analyze the cascade of peak risk transfer. This scheme could be used as input to macroprudential analyses as well as for assessing catastrophe preparedness