Financial Risk Analytics for Informed Sovereign Disaster Risk Financing Decision Making

World Bank

Washington, DC

关键词: INSURANCE;    LOSS;    REINSURANCE;    EARTHQUAKE;    RISK INSURANCE;   

RP-ID  :  97971

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Evaluating the level of financialprotection and associated costs of sovereign disaster riskfinancing and insurance (DRFI) decisions is challenging.DRFI strategies are often presented as a combination offinancial instruments, such as domestic reserves, contingentcredit and catastrophe risk transfer instruments. However,governments usually lack tools to help them evaluate andquantify the costs and benefits of such strategies andanswer questions like: what should be the annual budgetallocation for post-disaster response? What should be thesize of domestic reserves? What should be the amount ofcontingent credit? Shall government purchase catastropherisk transfer instruments? Financial risk analytics helpsthe decision makers evaluate the financial costs andbenefits of sovereign DRFI strategies. Understanding thefinancial implications of alternative sovereign DRFIstrategies requires detailed financial analysis. Forexample, understanding the tradeoff between the quality offinancial coverage and its price requires some quantitativefinancial analysis. The results of financial analysis canalso be used to document and justify the process ofsovereign DRFI decision making.