Insuring Public Finances Against Natural Disasters: A Survey of Options and Recent Initiatives

August 1, 2006

Preview Citation

Format: Chicago

David J Hofman, and Patricia A Brukoff. Insuring Public Finances Against Natural Disasters: A Survey of Options and Recent Initiatives, (USA: International Monetary Fund, 2006) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Natural disasters can put severe strain on public finances, in particular in developing and small countries. But catastrophe insurance markets increasingly offer opportunities for the transfer of such risks. Thus far, developing countries have only tepidly begun to tap these opportunities. More frequent and intensive use of insurance markets may be desirable because it could help introduce an important element of predictability in the post-disaster public finances of disaster-prone developing countries. Against this background, the paper surveys the various available insurance modalities and reviews recent initiatives in developing and emerging market countries. It also identifies some key challenges for the insurance community, donors, and international financial institutions (IFIs).

Subject: Bonds, Environment, Financial institutions, Financial markets, Insurance, Insurance companies, International capital markets, Natural disasters

Keywords: Bond issue, Bonds, Caribbean, Catastrophe insurance pricing, Disaster insurance scheme, Disaster risk solution, Disaster-insurance modality, Earthquake insurance scheme, Index insurance contract, Insurance, Insurance companies, Insurance coverage, International capital markets, Market penetration, Natural disasters, Public finances, Reinsurance company, WP

Publication Details

Pages:

24
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 2006/199
Stock No:

WPIEA2006199
ISBN:

9781451864595
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers