Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events
Countries in the Caribbean and Central America are highly vulnerable to the adverse effects associated with earthquakes, tropical cyclones, and other major hydro-meteorological events such as excessive rainfall. Aftermath of disasters typically pla...
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| Format: | Working Paper |
| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/04/19476977/caribbean-central-american-partnership-catastrophe-risk-insurance-pooling-risk-safeguard-against-catastrophes-generated-natural-events http://hdl.handle.net/10986/18635 |
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okr-10986-18635 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ADMINISTRATIVE COSTS ANNUAL FINANCIAL STATEMENTS AUDITS BUILDING CODES CAPITAL MARKETS CAPITALIZATION CAPTIVE INSURANCE CAPTIVE INSURANCE COMPANIES CATASTROPHE COVERAGE CATASTROPHE INSURANCE CATASTROPHE RISK FINANCING CATASTROPHES CATASTROPHIC EVENTS CLIMATE CLIMATE CHANGE CLIMATE RISK INSURANCE CONTINGENT LIABILITIES CONTINGENT LIABILITY COST OF CAPITAL COST OF INSURANCE COST OF REINSURANCE CYCLONE EVENTS DAMAGES DAT DATABASE DEBT DISASTER DISASTER EVENT DISASTER EVENTS DISASTER RECONSTRUCTION DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTER RISKS DISASTERS DONOR COMMUNITY DONOR PLEDGES EARLY WARNING EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKE INSURANCE ECONOMIC BENEFITS ECONOMIC IMPACT ECONOMIC IMPACT OF CLIMATE CHANGE EFFECTS OF EARTHQUAKES EFFICIENCY GAINS EMERGENCIES EMERGENCY RESPONSE EMERGENCY RESPONSE ACTIVITIES EXTREME RAINFALL EXTREME RAINFALL EVENTS FINANCIAL CAPACITY FINANCIAL INSTRUMENTS FINANCIAL NEEDS FINANCIAL RESILIENCE FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FIXED COSTS FLOOD FLOODING FLOODS FOREIGN AFFAIRS HURRICANE HURRICANE CENTER HURRICANE SEASON HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INSURANCE ACTIVITIES INSURANCE COMPANY INSURANCE COVERAGE INSURANCE DESIGN INSURANCE INSTRUMENTS INSURANCE PAYOUT INSURANCE POLICIES INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURERS LANDSLIDES LAWS MINISTRIES OF FINANCE MITIGATION MONETARY FUND MORAL HAZARD NATURAL CATASTROPHES NATURAL HAZARD NATURAL HAZARDS OPERATING COSTS OPERATING EXPENDITURES PARAMETRIC INSURANCE PRODUCTS PORTFOLIO PRIMARY INSURER PRIVATE INSURANCE PROGRAMS PUBLIC DEBT RATES REINSURANCE REINSURANCE CONTRACT REINSURANCE CONTRACTS REINSURANCE MARKETS REINSURANCE PREMIUMS REINSURER REINSURERS RELIEF RESERVES RISK ASSESSMENT RISK ASSESSMENTS RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK PROFILES RISK REDUCTION RISK TRANSFER SAFETY SAVINGS SCENARIOS SOCIAL SAFETY NETS SOLVENCY SOVEREIGN RISK STORM STORM SURGE STORMS SUBSIDIARY SUSTAINABILITY TECHNICAL ASSISTANCE TRANSPORT TROPICAL CYCLONE TROPICAL CYCLONES UNDERWRITING WIND SPEED |
| spellingShingle |
ACCOUNTABILITY ADMINISTRATIVE COSTS ANNUAL FINANCIAL STATEMENTS AUDITS BUILDING CODES CAPITAL MARKETS CAPITALIZATION CAPTIVE INSURANCE CAPTIVE INSURANCE COMPANIES CATASTROPHE COVERAGE CATASTROPHE INSURANCE CATASTROPHE RISK FINANCING CATASTROPHES CATASTROPHIC EVENTS CLIMATE CLIMATE CHANGE CLIMATE RISK INSURANCE CONTINGENT LIABILITIES CONTINGENT LIABILITY COST OF CAPITAL COST OF INSURANCE COST OF REINSURANCE CYCLONE EVENTS DAMAGES DAT DATABASE DEBT DISASTER DISASTER EVENT DISASTER EVENTS DISASTER RECONSTRUCTION DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTER RISKS DISASTERS DONOR COMMUNITY DONOR PLEDGES EARLY WARNING EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKE INSURANCE ECONOMIC BENEFITS ECONOMIC IMPACT ECONOMIC IMPACT OF CLIMATE CHANGE EFFECTS OF EARTHQUAKES EFFICIENCY GAINS EMERGENCIES EMERGENCY RESPONSE EMERGENCY RESPONSE ACTIVITIES EXTREME RAINFALL EXTREME RAINFALL EVENTS FINANCIAL CAPACITY FINANCIAL INSTRUMENTS FINANCIAL NEEDS FINANCIAL RESILIENCE FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FIXED COSTS FLOOD FLOODING FLOODS FOREIGN AFFAIRS HURRICANE HURRICANE CENTER HURRICANE SEASON HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INSURANCE ACTIVITIES INSURANCE COMPANY INSURANCE COVERAGE INSURANCE DESIGN INSURANCE INSTRUMENTS INSURANCE PAYOUT INSURANCE POLICIES INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURERS LANDSLIDES LAWS MINISTRIES OF FINANCE MITIGATION MONETARY FUND MORAL HAZARD NATURAL CATASTROPHES NATURAL HAZARD NATURAL HAZARDS OPERATING COSTS OPERATING EXPENDITURES PARAMETRIC INSURANCE PRODUCTS PORTFOLIO PRIMARY INSURER PRIVATE INSURANCE PROGRAMS PUBLIC DEBT RATES REINSURANCE REINSURANCE CONTRACT REINSURANCE CONTRACTS REINSURANCE MARKETS REINSURANCE PREMIUMS REINSURER REINSURERS RELIEF RESERVES RISK ASSESSMENT RISK ASSESSMENTS RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK PROFILES RISK REDUCTION RISK TRANSFER SAFETY SAVINGS SCENARIOS SOCIAL SAFETY NETS SOLVENCY SOVEREIGN RISK STORM STORM SURGE STORMS SUBSIDIARY SUSTAINABILITY TECHNICAL ASSISTANCE TRANSPORT TROPICAL CYCLONE TROPICAL CYCLONES UNDERWRITING WIND SPEED World Bank Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| geographic_facet |
Latin America & Caribbean Caribbean Central America |
| description |
Countries in the Caribbean and Central
America are highly vulnerable to the adverse effects
associated with earthquakes, tropical cyclones, and other
major hydro-meteorological events such as excessive
rainfall. Aftermath of disasters typically place significant
strain on the fiscal systems of affected countries.
Consequently, ministers of the Central American integration
system (SICA) and Caribbean community (CARICOM) countries
have expressed a strong intention to collectively manage the
disaster risk. By understanding the loss potential of
disasters caused by natural events and the extent of public
intervention in recovery and reconstruction efforts,
governments can ascertain their respective contingent
liabilities. Sovereign disaster risk financing and insurance
can also safeguard against sudden macroeconomic shocks that
negatively impact fiscal performance, and in turn, economic
development. Caribbean and Central American governments are
constrained in their ability to access quick liquidity to
absorb fiscal shocks associated with natural hazard impacts
because they have limited ability to create contingency
funds, and limited capacity for external borrowing. The
World Bank in partnership with the United States department
of treasury assessed various options, which guided Ministers
of Finance of Central America, Panama, and the Dominican
Republic (COSEFIN) to identify the Caribbean catastrophe
risk insurance facility (CCRIF) as the best option. The
CCRIF provides cost-effective and fast-disbursing liquidity,
and is an efficient way to finance a liquidity gap arising
in the immediate aftermath of disaster. |
| format |
Publications & Research :: Working Paper |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| title_short |
Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| title_full |
Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| title_fullStr |
Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| title_full_unstemmed |
Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events |
| title_sort |
caribbean and central american partnership for catastrophe risk insurance : pooling risk to safeguard against catastrophes generated by natural events |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/04/19476977/caribbean-central-american-partnership-catastrophe-risk-insurance-pooling-risk-safeguard-against-catastrophes-generated-natural-events http://hdl.handle.net/10986/18635 |
| _version_ |
1764442318705786880 |
| spelling |
okr-10986-186352021-04-23T14:03:48Z Caribbean and Central American Partnership for Catastrophe Risk Insurance : Pooling Risk to Safeguard against Catastrophes Generated by Natural Events World Bank ACCOUNTABILITY ADMINISTRATIVE COSTS ANNUAL FINANCIAL STATEMENTS AUDITS BUILDING CODES CAPITAL MARKETS CAPITALIZATION CAPTIVE INSURANCE CAPTIVE INSURANCE COMPANIES CATASTROPHE COVERAGE CATASTROPHE INSURANCE CATASTROPHE RISK FINANCING CATASTROPHES CATASTROPHIC EVENTS CLIMATE CLIMATE CHANGE CLIMATE RISK INSURANCE CONTINGENT LIABILITIES CONTINGENT LIABILITY COST OF CAPITAL COST OF INSURANCE COST OF REINSURANCE CYCLONE EVENTS DAMAGES DAT DATABASE DEBT DISASTER DISASTER EVENT DISASTER EVENTS DISASTER RECONSTRUCTION DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTER RISKS DISASTERS DONOR COMMUNITY DONOR PLEDGES EARLY WARNING EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKE INSURANCE ECONOMIC BENEFITS ECONOMIC IMPACT ECONOMIC IMPACT OF CLIMATE CHANGE EFFECTS OF EARTHQUAKES EFFICIENCY GAINS EMERGENCIES EMERGENCY RESPONSE EMERGENCY RESPONSE ACTIVITIES EXTREME RAINFALL EXTREME RAINFALL EVENTS FINANCIAL CAPACITY FINANCIAL INSTRUMENTS FINANCIAL NEEDS FINANCIAL RESILIENCE FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FIXED COSTS FLOOD FLOODING FLOODS FOREIGN AFFAIRS HURRICANE HURRICANE CENTER HURRICANE SEASON HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INSURANCE ACTIVITIES INSURANCE COMPANY INSURANCE COVERAGE INSURANCE DESIGN INSURANCE INSTRUMENTS INSURANCE PAYOUT INSURANCE POLICIES INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURERS LANDSLIDES LAWS MINISTRIES OF FINANCE MITIGATION MONETARY FUND MORAL HAZARD NATURAL CATASTROPHES NATURAL HAZARD NATURAL HAZARDS OPERATING COSTS OPERATING EXPENDITURES PARAMETRIC INSURANCE PRODUCTS PORTFOLIO PRIMARY INSURER PRIVATE INSURANCE PROGRAMS PUBLIC DEBT RATES REINSURANCE REINSURANCE CONTRACT REINSURANCE CONTRACTS REINSURANCE MARKETS REINSURANCE PREMIUMS REINSURER REINSURERS RELIEF RESERVES RISK ASSESSMENT RISK ASSESSMENTS RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK PROFILES RISK REDUCTION RISK TRANSFER SAFETY SAVINGS SCENARIOS SOCIAL SAFETY NETS SOLVENCY SOVEREIGN RISK STORM STORM SURGE STORMS SUBSIDIARY SUSTAINABILITY TECHNICAL ASSISTANCE TRANSPORT TROPICAL CYCLONE TROPICAL CYCLONES UNDERWRITING WIND SPEED Countries in the Caribbean and Central America are highly vulnerable to the adverse effects associated with earthquakes, tropical cyclones, and other major hydro-meteorological events such as excessive rainfall. Aftermath of disasters typically place significant strain on the fiscal systems of affected countries. Consequently, ministers of the Central American integration system (SICA) and Caribbean community (CARICOM) countries have expressed a strong intention to collectively manage the disaster risk. By understanding the loss potential of disasters caused by natural events and the extent of public intervention in recovery and reconstruction efforts, governments can ascertain their respective contingent liabilities. Sovereign disaster risk financing and insurance can also safeguard against sudden macroeconomic shocks that negatively impact fiscal performance, and in turn, economic development. Caribbean and Central American governments are constrained in their ability to access quick liquidity to absorb fiscal shocks associated with natural hazard impacts because they have limited ability to create contingency funds, and limited capacity for external borrowing. The World Bank in partnership with the United States department of treasury assessed various options, which guided Ministers of Finance of Central America, Panama, and the Dominican Republic (COSEFIN) to identify the Caribbean catastrophe risk insurance facility (CCRIF) as the best option. The CCRIF provides cost-effective and fast-disbursing liquidity, and is an efficient way to finance a liquidity gap arising in the immediate aftermath of disaster. 2014-06-11T21:40:50Z 2014-06-11T21:40:50Z 2014-04 http://documents.worldbank.org/curated/en/2014/04/19476977/caribbean-central-american-partnership-catastrophe-risk-insurance-pooling-risk-safeguard-against-catastrophes-generated-natural-events http://hdl.handle.net/10986/18635 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean Caribbean Central America |