We investigate the economic impact of stochastic endogenous extreme events and insurance in a growth model. Our … analytical results and computational experiments show that i) transparency of the insurance sector is the decisive requisite for … insurance fairly is preferable to an insurance industry which provides insurance with an overhead. …

ex-ante preparedness is needed to manage the risks. The paper discusses sovereign experience with disaster insurance as a … use by vulnerable countries. The paper especially aims to inform policy decisions on disaster insurance. Through … key instrument to mitigate the risks; proposes ways to judge the adequacy of insurance; and considers ways to enhance its …