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Securitizing the Risks of Climate Change: Institutional Innovations in the Insurance of Catastrophic Risk

Stripple, Johannes LU (1998) In Interim Report
Abstract
The present vulnerability of regions, communities and activities, to changes in the

frequency, intensity and distribution of extreme meteorological conditions presents a

problem that may be complicated by climate change. Society has many different ways

of responding to catastrophic risks and distributing the financial losses. This paper

contrasts different approaches on grounds of efficiency and equity. The main focus is on

securitization: a new mechanism for spreading risks that is of interest to insurance

companies to assure the supply of adequate financial capacity, and also to governments

as the insurers of last resort. The 1997 flood in Poland that amounted to a cost of 3%... (More)
The present vulnerability of regions, communities and activities, to changes in the

frequency, intensity and distribution of extreme meteorological conditions presents a

problem that may be complicated by climate change. Society has many different ways

of responding to catastrophic risks and distributing the financial losses. This paper

contrasts different approaches on grounds of efficiency and equity. The main focus is on

securitization: a new mechanism for spreading risks that is of interest to insurance

companies to assure the supply of adequate financial capacity, and also to governments

as the insurers of last resort. The 1997 flood in Poland that amounted to a cost of 3% of

GDP is analysed, and securitization is proposed as a possible alternative to traditional

insurance for ex ante coverage of the risk. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Book/Report
publication status
published
subject
keywords
Internationell politik
in
Interim Report
publisher
International Institute for Applied Systems Analysis
language
English
LU publication?
yes
id
d1fed1af-47af-45b4-950e-dc554b0aefbf (old id 533784)
alternative location
http://www.iiasa.ac.at/Publications/Documents/IR-98-098.pdf
date added to LUP
2007-09-12 12:15:57
date last changed
2016-04-16 08:58:57
@misc{d1fed1af-47af-45b4-950e-dc554b0aefbf,
  abstract     = {The present vulnerability of regions, communities and activities, to changes in the<br/><br>
frequency, intensity and distribution of extreme meteorological conditions presents a<br/><br>
problem that may be complicated by climate change. Society has many different ways<br/><br>
of responding to catastrophic risks and distributing the financial losses. This paper<br/><br>
contrasts different approaches on grounds of efficiency and equity. The main focus is on<br/><br>
securitization: a new mechanism for spreading risks that is of interest to insurance<br/><br>
companies to assure the supply of adequate financial capacity, and also to governments<br/><br>
as the insurers of last resort. The 1997 flood in Poland that amounted to a cost of 3% of<br/><br>
GDP is analysed, and securitization is proposed as a possible alternative to traditional<br/><br>
insurance for ex ante coverage of the risk.},
  author       = {Stripple, Johannes},
  keyword      = {Internationell politik},
  language     = {eng},
  publisher    = {ARRAY(0xa090788)},
  series       = {Interim Report},
  title        = {Securitizing the Risks of Climate Change: Institutional Innovations in the Insurance of Catastrophic Risk},
  year         = {1998},
}