eBook

Financial and fiscal instruments for catastrophe risk management

Pollner, John

2012

Overview

This report addresses the large flood exposures of Central Europe and proposes efficient financial and risk transfer mechanisms to mitigate fiscal losses from natural catastrophes. In particular, the Visegrad countries (V-4) of Central Europe, namely, Poland, the Czech Republic, Hungary, and the Slovak Republic, have such tremendous potential flood damages that reliance on budgetary appropriations or even European Union (EU) funds in such circumstances becomes ineffective and does not provide needed cash funds for the quick response and recovery needed to minimize economic disruptions. The report is primarily addressed to the governments of the region, which should build into their fiscal planning the necessary contingent funding mechanisms, based on their exposures. The report is addressed to finance ministries and also to the insurance and securities regulators and the private insurance and capital markets, which may all play a role in the proposed mechanisms. An arrangement using a multi-country pool with a hazard-triggered insurance payout mechanism complemented by contingent financing is proposed, to better manage these risks and avoid major fiscal volatility and disruption.

• Publisher: THE WORLD BANK,World Bank,World Bank Publications,The World Bank,Washington, DC: World Bank
• Subject: ACCESS TO CAPITAL / ACCESS TO LOANS / ALTERNATIVE FUNDING / AMORTIZATION / AMOUNT OF RISK / ASSET PORTFOLIO / ASSET VALUES / BASIS RISK / BENEFICIARY / BOND FINANCING / BOND FUND / BOND INSTRUMENT / BOND INSURANCE / BOND INVESTOR / BOND ISSUER / BOND RATING / BOND RETURN / BOND SPREAD / BOND SPREADS / BOND YIELD / BONDHOLDER / BONDHOLDERS / BROKER / BUS070040 - BUSINESS & ECONOMICS / CAPITAL MARKET / CAPITAL MARKETS / CAPITAL REQUIREMENTS / CASH FLOW / CATASTROPHE BOND / CATASTROPHE BONDS / CATASTROPHE COVERAGE / CATASTROPHE INSURANCE / CATASTROPHE REINSURANCE / Catastrophe-Insurance-Disaster-Risk Management-Visegrad-Parametric Insurance-Catastrophic Risk-Financial Risk Management-Pooling-Pooled-Flood Risk-Flood Insurance-Catastrophe Bond / CATASTROPHES / CATASTROPHIC EVENT / CATASTROPHIC EVENTS / CATASTROPHIC LOSS / CATASTROPHIC LOSSES / CATASTROPHIC RISKS / CENTRAL BANK / Central Europe / CENTRAL GOVERNMENTS / CLIMATE / CLIMATE CHANGE / COMMERCIAL BANKS / CONTINGENT DEBT / CONTRACT DESIGN / COUNTRY RISK / COUNTRY RISKS / COUPON / COUPON INTEREST RATE / COVERAGE / CRED / CREDIT GUARANTEES / CREDIT QUALITY / CREDIT RISK / CREDITORS / CROP LOSSES / CURRENCY / DAMAGE ASSESSMENTS / DEBT / DEBT FINANCING / DEBT INSTRUMENTS / DEBT LEVELS / DEBT SECURITY / DEFAULT RISK / DISASTER EVENT / DISASTER EVENTS / DISASTER FINANCING / Disaster insurance / Disaster insurance -- Europe, Central / DISASTER MANAGEMENT / DISASTER RECONSTRUCTION / DISASTER RESPONSE / DISASTER RISK / DROUGHTS / EARTHQUAKE / EARTHQUAKES / Elementarschadenversicherung / Energy Industries / EPIDEMIOLOGY / Europe, Central / EUROPEAN CENTRAL BANK / EXCHANGE RATES / EXPENDITURE / EXPENDITURES / EXPLOSION / EXTREME TEMPERATURES / FEASIBILITY / Finance and Financial Sector Development / FINANCE MINISTRIES / FINANCIAL COMPENSATION / FINANCIAL CRISIS / FINANCIAL DEVELOPMENT / FINANCIAL INSTRUMENT / FINANCIAL INSTRUMENTS / Financial loss / FINANCIAL MANAGEMENT / FINANCIAL MARKET / FINANCIAL MARKETS / FINANCIAL MECHANISMS / Financial risk management / Financial risk management -- Europe, Central / Financial risks / FINANCIAL SECTOR / FINANCIAL SECTOR DEVELOPMENT / FINANCIAL STRUCTURE / FINANCING SOURCES / FIRE / FISCAL DEFICITS / Fiscal instruments / FLOOD / FLOOD DAMAGES / FLOOD INSURANCE / FLOODING / FLOODS / Floods -- Europe, Central / GOVERNMENT ASSETS / GOVERNMENT BUDGET / GOVERNMENT EXPENDITURE / GOVERNMENT EXPENDITURES / GOVERNMENT REVENUE / GOVERNMENT REVENUES / GOVERNMENT SPENDING / GOVERNMENT SUPPORT / GRACE PERIOD / GROSS DOMESTIC PRODUCT / GUARANTEE FEE / HEAVY RAIN / HOUSING / HURRICANE / HURRICANES / IMPACT OF DISASTERS / INCOME / INCOME LEVEL / INCOME LEVELS / INDEBTEDNESS / INDEMNITY / INDEMNITY INSURANCE / Industries / INFORMATION SYSTEM / INFORMATION SYSTEMS / INFORMED DECISIONS / Infrastructure Economics and Finance / INSTRUMENT / INSURANCE / INSURANCE CONTRACT / INSURANCE COVERAGE / INSURANCE INDUSTRY / INSURANCE INSTRUMENTS / INSURANCE MARKET / INSURANCE MARKETS / INSURANCE MECHANISMS / INSURANCE PAYOUT / INSURANCE PENETRATION / INSURANCE POLICIES / INSURANCE PREMIUM / INSURANCE PREMIUMS / INSURANCE RESERVES / INSURANCE RISK / INSURANCE SECTOR / INSURED LOSSES / INSURER / INSURERS / INTEREST RATE / INTEREST RATE SPREAD / INTERNATIONAL BANK / INTERNATIONAL FINANCIAL STATISTICS / INVENTORY / INVESTING / ISSUANCE / Katastrophe / LANDSLIDES / LEGAL PROVISIONS / LEVEL OF RISK / LIQUIDITY / LOAN / LOAN BALANCE / MARKET COMPETITION / MARKET INFORMATION / MARKET INSTRUMENT / MARKET INSTRUMENTS / MARKET PRICING / MATURITIES / MATURITY / MATURITY PERIOD / MINISTRIES OF FINANCE / Mitteleuropa / NATURAL CATASTROPHES / NATURAL DISASTER / NATURAL DISASTERS / OUTPUT DECLINES / PORTFOLIO / PORTFOLIO DIVERSIFICATION / PORTFOLIOS / PREMIUM PAYMENT / PREMIUM PAYMENTS / PRINCIPAL REPAYMENT / PRIVATE COMMERCIAL BANKS / PRIVATE INSURANCE / PRIVATE PARTY / PRIVATE PROPERTY / Probability / PROBABILITY OF DEFAULT / PUBLIC BUDGETS / PUBLIC EXPENDITURES / PUBLIC FINANCE / PUBLIC SECTOR DEFICITS / PURCHASING POWER / RATE OF RETURN / REINSURANCE / REINSURANCE BROKER / REINSURANCE CONTRACTS / REINSURERS / REPAYMENTS / RESERVE / RESERVE FUNDS / RESERVES / RETURN / RETURNS / RISK ANALYSIS / RISK ASSESSMENT / RISK EXPOSURE / RISK EXPOSURES / RISK FACTORS / RISK INSURANCE / RISK MANAGEMENT / RISK MANAGEMENT TOOLS / RISK MANAGERS / RISK POOLING / RISK PREMIUM / RISK TRANSFER / SAVINGS / SCENARIOS / SECURITIES / SHORT-TERM LIQUIDITY / Social Protections and Labor / SOVEREIGN ENTITIES / STATISTICAL ANALYSIS / STORM / STORMS / SUBSIDIARIES / SUSTAINABILITY / SWAP / SWAPS / TRANSACTION / TROPICAL CYCLONE / TYPE OF DISASTER / UNDERWRITING / WEATHER DERIVATIVES / WEATHER EVENTS / WIND STORMS / Überschwemmung
• ISBN: 7808213958, 0821395793, 9780821395790