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devastation may contribute to the economic collapse and increase in sovereign debt. A catastrophe bond (CAT bond) can be utilized … to transfer catastrophe risk to the financial market. This article examines how policymakers can use a CAT bond as an ex … using three potential catastrophe bond packages based on the coverage size of the simulated loss. We find that all packages …
Persistent link: https://www.econbiz.de/10014439383
the parametric CAT bond are derived. Multi-regional and multi-hazard parametric CAT bonds are introduced to reduce the …
Persistent link: https://www.econbiz.de/10012705095
hypothetical CAT bond issued for the period 1999-2003. As a result, by transferring the risk to the capital market, investors could …
Persistent link: https://www.econbiz.de/10014516261
change. This increase has an impact on the disaster insurance field, particularly in the calculation of premiums. Many … growth. Therefore, this research aims to develop premium models of natural disaster insurance that uniquely involve two new …, this study uses the model to estimate the premiums for natural disaster insurance in each province of Indonesia. The …
Persistent link: https://www.econbiz.de/10014637187
The aim of this paper is to merge order statistics with natural catastrophe reinsurance pricing to develop new theoretical and practical insights relevant to market practice and model development. We present a novel framework to quantify the role that occurrence losses (order statistics) play in...
Persistent link: https://www.econbiz.de/10012508519
capital markets. Catastrophe lending facilities providing "cheap" reconstruction funds in the aftermath of a natural disaster …
Persistent link: https://www.econbiz.de/10012551593
mechanisms by studying the feedback loops governing complex systems connected to the disaster insurance mechanism. Instead of … addressing the disaster's underlying risk, the traditional disaster insurance strategy largely focuses on providing financial … security for asset recovery after a disaster. This constraint becomes especially concerning as the threat of climate …
Persistent link: https://www.econbiz.de/10014497445
Rainfall is an important source of covariate shock in developing countries. Insurance against a rainfall index has, therefore, held much promise as a formal insurance product to protect the livelihoods of poor farmers. But how good is rainfall as a measure of covariate shocks? The imperfect...
Persistent link: https://www.econbiz.de/10015053889
management, either through some ex post disaster aid or through subsidised insurance. Farmers’ preferences were generally aligned …
Persistent link: https://www.econbiz.de/10014423572
catastrophic bonds triggered by multiple events with an extreme dependence structure. Due to the bond's low cashflow contingencies … and the CAT bond's high return, the multiple-event CAT bond may successfully transfer the catastrophe risk to the huge … mechanism helps reduce the moral hazard and increase the bond's attractiveness with a lower trigger likelihood, displaying the …
Persistent link: https://www.econbiz.de/10014370493