Webinaire ID : 981 1262 5155
In recent years, the economic losses incurred from natural and manmade catastrophes have increased significantly. Resilience to low-probability high-consequence catastrophic events is a fundamental concern in catastrophe risk management, defined as the ability to plan for, prepare for, respond to, and recover from catastrophic damage. The achievement of such resilience requires well-thought mitigation strategies both at the operational and financial levels. In this talk, we consider the establishment of a horizontal collaboration between stakeholders similarly affected by disasters (countries, municipalities, cities, etc.) for the joint operations of collaborative prepositioning of strategic reserves and of providing emergency response. Such a collaboration faces many challenges such as determining the best way of organizing, managing, and integrating the logistical and financial functions of prepositioning and emergency response operations, as well as determining the best mechanism for pooling and sharing the benefits and costs between stakeholders. In order to address these challenges, we present a mutual catastrophe insurance framework for the prepositioning of strategic reserves where a risk averse insurer provides multi-year insurance contracts with a coverage deductible and a coverage limit to a portfolio of risk averse policyholders. The framework encompasses the logistical functions associated with planning the prepositioning of strategic reserves in preparedness for incoming insurance claims and providing emergency response to the claims, the insurance functions of designing the insurance contracts of each policyholder in the portfolio and providing insurance coverage, and the financial function of managing the financial capital of the insurer.