Catastrophe bonds feature full collateralization of the underlying risk transfer, and thus abandon the insurance principle of economizing on collateral through diversification. We examine the theoreti
In face of the increasing frequency and intensity of disasters, the Southeast Asian region’s capacity to finance prevention and response remains limited. Regional risk-sharing pools are one way to enh
Organisation for Economic Co-operation and Development20
Financial instruments whose payoffs are linked to exogenous events, such as the occurrence of a natural catastrophe or an unusual weather pattern depend crucially on actuarial models for determining e
