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

Author/Editor:

David J Hofman ; Patricia A Brukoff

Publication Date:

August 1, 2006

Electronic Access:

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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).

Series:

Working Paper No. 2006/199

Subject:

Bonds Environment Financial institutions Financial markets Insurance Insurance companies International capital markets Natural disasters

English

Publication Date:

August 1, 2006

ISBN/ISSN:

9781451864595/1018-5941

Stock No:

WPIEA2006199

Pages:

24

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