Using data for 2002-2005 on a representative survey of French farms (FADN-RICA), we investigate the different factors that lead farmers to insure against crop risk. Our analysis takes into account a mix of both standard individual, financial and agricultural criteria. Cross-sectional and...

This article considers the potential for securitizing index-based insurance products that transfer weather and natural disaster risks from lower income countries. It begins with a brief overview explaining why markets for natural disaster risks are important, yet often missing, in lower income...

Natural and man made disasters cause severe human, physical and economic damage, both for the economy and for the population. There is a widespread perception that property insurance is the most efficient and economical way to protect against financial losses caused by natural disasters....

Pandemic risks, such as Covid-19, are difficult to insure as they are characterized by multiple factor risks and losses and involve different types of businesses and people simultaneously. The scarcity of time series and statistical data prevents insurers from developing correct pricing. We...

This paper shows that pricing catastrophe bonds boils down to computing first-passage time distributions of jump-diffusion processes. It derives a generic valuation expression by assuming that the jump risk is not systematic and then performs simulations, which can stress the sensitivity of...

This paper shows that pricing catastrophe bonds boils down to computing first-passage time distributions of jump-diffusion processes. It derives a generic valuation expression by assuming that the jump risk is not systematic and then performs simulations, which can stress the sensitivity of...

This study develops a structural framework to value insurers’ contingent capital with counterparty risk (CR) and overcomes the problem of price endogeneity (PE) in the valuation model. Our results on the focal contingent capital instrument – catastrophe equity put option (CatEPut) –...

Had the destruction and suffering visited upon New Orleans by Hurricane Katrina been the result of a terrorist attack, it would have been very successful – not because of the number of innocent lives lost or amount of property destroyed, but rather because of the breakdown of the social order....

This paper considers the potential for securitizing index-based insurance products that transfer weather and natural disaster risks from lower income countries. The paper begins with a brief overview of why markets for natural disaster risks are important in lower income countries and a review...

Until recently, the meteorological disturbances to the management of economic entities had to be simply accepted; however, several financial tools have been developed, with which we can cancel out the adverse influence of meteorological events. This paper will intend to examine 2 types of tools,...