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 poorest segments of population, is the exposure to shocks that are generated by catastrophic events or natural disasters.This paper 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. It analyzes the possible market failures which could explain the lack of development of the catastrophic insurance market. Finally the paper outlines a set of recommendations for public sector interventions. (AU)

Proyecto de articulación y optimización entre la secretaria regional de salud y el sistema de seguros de salud Chuquisaca / Project of articulation and optimization between the regional secretary of health and the system of health insurances Chuquisaca

El habitante boliviano, por las condiciones socioeconómicas que enfrenta, tiene en el contexto latinoamericano y mundial, un nivel de vida considerado de los más bajos, traduciéndoce en altos índices precarias, lo que repercute en nivel de salud deprimente, con tasas de morbimortalidad demasiado elevadas y una espectativa de vida baja, comparando con países similares.

Chapter 7 : Earthquake insurance as a hazard reduction strategy : The case of the homeowner

A case made in this chapterfor requiring homeowners in earthquake prone areas throughout the country to purchase insurance and adopt cost-effective Loss Reduction Measures (LRMs). Substantial empirical data show that many homeowners do not voluntarily purchase insurance because they perceive the probability of the event to be so low that "it cannot happen to me". One reason few individuals take steps to mitigate potential losses is that they have short-time horizons and are not convinced that the expected long-run benefits from the LRMs justify the upfront expenses. The available data indicates that many insurance firms could suffer substantial losses from a major earthquake. Many insurers claims will be from indirect losses such as fire and workers compensation which are covered by non-earthquake policies. A Federal reinsurance program, similar to the one proposed in the Earthquake Hazards Reduction Amendments Act now before Congress, could be an appropriate solution. In return insurers should be able to reduce premiums from what they currently charge and provide rate-based incentives to homeowners to encourage them to adopt cost-effective LRMs.(AU)

Flood insurance and relief in the U.S. and Britain

Whithin the broad range od strategies available for hazardreduction, insurance and relief focus on loss redistribution, rather than loss reduction. The use of these measures will affect every part of the flood hazard management process. Successful inplementation requires that they not be treated in isolation from other mitigation measures and thier social context. This paper briefly examines the different roles goverment can adopt in loss redistribution. Two of the seven identified approaches are examined further using the United States and Britain as contrasting examples. At the federal level the United States presents an integrated program based on a national flood insurance scheme, which itself is tied to land-use regulation. Furthermore, the program ios administered by one central agency. The british approach, in contrast, appears un coordinated and adhoc. There are not implicit national flood-related policies or standard procedures for disaster relief. However, flood insurance is generally included in normal commercial and household cover. Relief relies heavily on public appeals. In turn, the success of these appealsvaries dramatically with the disaster. All approaches raise serious questions for industrialized countries about the proper role of goverment, about equity, and about the desirability of special disaster provisions. (AU)