1887

Risk Awareness, Capital Markets and Catastrophic Risks

image of Risk Awareness, Capital Markets and Catastrophic Risks

The OECD contributes to the improvement of the financial management of major catastrophes both through the activities of the International Network on the Financial Management of Large-Scale Catastrophes and through the leadership of its High-Level Advisory Board. This publication compiles a series of reports reflecting the OECD’s extensive work in this field over recent years. These reports include: 1) a stocktaking of initiatives to promote natural hazard awareness and disaster risk reduction education, resulting in the publication of a policy handbook; 2) a review of and recommendations on catastrophe-linked securities and the role of capital markets in supporting the financial mitigation of large-scale risks, aimed at governments promoting these instruments; 3) a review of current mechanisms used to quantify catastrophe losses within the OECD; and 4) a review of hazard risk mapping efforts in South East Asian countries.

English

.

Summary

Catastrophe-linked (“CAT-linked”) securities provide a mechanism for the transfer of catastrophe risks to capital markets, and may provide an additional layer of protection to traditional insurance and reinsurance arrangements or serve to reduce reliance on these arrangements by permitting direct access to capital markets for the coverage of catastrophe risks. CAT-linked securities may also create opportunities for the transfer of catastrophe risks that are currently not covered by insurance markets, thus potentially broadening the overall financial coverage of such risks.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error