Catastrophe Insurance Market in the Caribbean Region : Market Failures and Recommendations for Public Sector Interventions

The Caribbean region suffers from a high degree of economic volatility. A history of repeated external and domestic shocks has made economic insecurity a major concern across the region. Of particular concern to all households, especially the poore...

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Bibliographic Details
Main Author:	Auffret, Philippe
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	CATASTROPHIC PHENOMENA INSURANCE PREMIUMS INSURANCE CASUALTY RISK MANAGEMENT MARKET FAILURE NATURAL DISASTERS DISASTER PREPAREDNESS DISASTER PRONE AREAS DISASTER RECOVERY CROP INSURANCE WEATHER MONITORING ADVERSE SELECTION MORAL HAZARD LAND USE REINSURANCE ADVERSE SELECTION AGENTS APPROPRIATE TECHNOLOGY BONDS BROKERS BUILDING CODES CATASTROPHE REINSURANCE CATASTROPHES CATASTROPHIC LOSSES CATASTROPHIC RISKS CIVIL DEFENSE COMMODITIES COMPULSORY INSURANCE CONCEPTUAL FRAMEWORK CONSUMERS CONTINGENCY PLANS COVERAGE DEBT DECISION MAKING DEVELOPED COUNTRIES DISASTER ASSISTANCE DISASTER EMERGENCY RESPONSE DISASTER INSURANCE DISASTER MANAGEMENT DISASTER MITIGATION DISASTER VICTIMS DISASTERS EARTHQUAKE INSURANCE EARTHQUAKES EMERGENCIES EMERGENCY MANAGEMENT EMERGENCY RECOVERY EMERGENCY RELIEF EMPLOYMENT ENVIRONMENTAL CONTAMINATION ENVIRONMENTAL MANAGEMENT EVACUATION FARMERS FATALITIES FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FIXED COSTS FLOOD PRONE AREAS FLOODING FLOODS FUTURES HOUSING HURRICANES INCOME INSURANCE INSURANCE COMPANIES INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE POLICIES INSURANCE TRANSACTIONS INSURED LOSSES LANDSLIDES LIFE INSURANCE LOW INCOME MARKET FAILURES MITIGATION MITIGATION MEASURES MORAL HAZARD PROBLEMS MORTGAGES NATURAL HAZARDS NON-LIFE INSURANCE POLICY RESEARCH POLICYHOLDERS POOR FARMERS PREMIUMS PRIVATE SECTOR PRODUCERS PROGRAMS PROPERTY INSURANCE PROPORTIONAL REINSURANCE RATES REGIONAL RISK MANAGEMENT REINSURANCE COMPANIES REINSURANCE MARKETS REINSURANCE PREMIUMS REINSURERS RELIEF RIOTS RISK ASSESSMENT RISK MITIGATION RISK REDUCTION RISK TRANSFER RIVER BASINS RURAL COMMUNITIES SAVINGS SCIENTIFIC RESEARCH SECURITIES TIMBER UNDERWRITING UNINSURED LOSSES WARNING SYSTEMS
Online Access:	http://documents.worldbank.org/curated/en/2003/01/2128869/catastrophe-insurance-market-caribbean-region-market-failures-recommendations-public-sector-interventions http://hdl.handle.net/10986/19184

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Summary:	The Caribbean region suffers from a high degree of economic volatility. A history of repeated external and domestic shocks has made economic insecurity a major concern across the region. Of particular concern to all households, especially the poorest segments of the population, is the exposure to shocks that are generated by catastrophic events or natural disasters. The author develops a conceptual framework for risk management and shows that the insurance market for catastrophic risk in the Caribbean region remains a "thin" market characterized by "high" prices and "low" transfer of risk. He analyzes the possible market failures which could explain the lack of development of the catastrophe insurance market. Finally he outlines a set of recommendations for public sector interventions.

Catastrophe Insurance Market in the Caribbean Region : Market Failures and Recommendations for Public Sector Interventions

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