Financial and Fiscal Instruments for Catastrophe Risk Management : Addressing Losses From Flood Hazards In Central Europe (Poland, Czech Republic, Hungary and Slovakia)
This report addresses the large flood exposures of Central Europe and proposes efficient financial and risk transfer mechanisms to mitigate fiscal losses from natural catastrophes.. The report is primarily addressed to the governments of the region...
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| Format: | Other Financial Sector Study |
| Language: | English |
| Published: |
World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000020953_20120229153123 http://hdl.handle.net/10986/2827 |
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okr-10986-2827 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCESS TO LOANS ALTERNATIVE FUNDING AMORTIZATION AMOUNT OF RISK ASSET PORTFOLIO ASSET PORTFOLIOS ASSET VALUE ASSET VALUES BASIS RISK BENEFICIARY BIDS BOND FINANCING BOND FUND BOND FUNDS BOND INSTRUMENT BOND INSURANCE BOND INVESTOR BOND INVESTORS BOND ISSUANCES BOND ISSUER BOND MARKET BOND PORTFOLIO BOND RATING BOND RETURN BOND SPREAD BOND SPREADS BOND YIELD BONDHOLDER BONDHOLDERS BROKER CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CATASTROPHE BOND CATASTROPHE BONDS CATASTROPHE COVERAGE CATASTROPHE REINSURANCE CATASTROPHES CATASTROPHIC EVENTS CATASTROPHIC LOSSES CATASTROPHIC RISKS CLIMATE CHANGE COMMERCIAL BANKS CONTINGENT DEBT CONTRACT DESIGN COUNTRY RISK COUNTRY RISKS COUPON COUPON INTEREST RATE COUPON PAYMENT COUPON PAYMENTS COUPON RATE COUPONS CRED CREDIBILITY CREDIT GUARANTEE CREDIT GUARANTEES CREDIT QUALITY CREDIT RATING CREDIT RISK CREDIT RISKS CREDITORS CROP LOSSES CURRENCY DAMAGE ASSESSMENTS DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT LEVELS DEBT SECURITY DEFAULT RISK DEGREE OF LIQUIDITY DEPOSIT DEPOSIT INSURANCE DISASTER EVENT DISASTER EVENTS DISASTER INSURANCE DISASTER MANAGEMENT DISASTER RECONSTRUCTION DISASTER RESPONSE DISASTER RISK DISBURSEMENT DIVERSIFIED PORTFOLIO DROUGHTS DUE DILIGENCE EARTHQUAKE EARTHQUAKES EPIDEMIOLOGY EQUIPMENT EXPENDITURE EXPENDITURES EXPLOSION FINANCIAL COMPENSATION FINANCIAL CRISIS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURE FIRE FISCAL DEFICITS FLOATING RATES FLOOD FLOOD DAMAGES FLOOD INSURANCE FLOODS FUND MANAGER GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENT SUPPORT GRACE PERIOD GUARANTEE FEE HEAVY RAIN HURRICANE HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INFORMATION SYSTEM INFORMATION SYSTEMS INFORMED DECISIONS INSTRUMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE RESERVES INSURANCE RISK INSURED LOSSES INSURER INSURERS INTEREST PAYMENTS INTEREST RATE INTEREST RATE SPREAD INTERNATIONAL FINANCIAL STATISTICS INVENTORIES INVENTORY INVESTING ISSUANCE LANDSLIDES LEGAL PROVISIONS LEVEL OF RISK LIQUIDITY LOAN LOAN BALANCE LOAN CONTRACT MARKET COMPETITION MARKET INSTRUMENT MARKET INSTRUMENTS MARKET PLAYERS MARKET PRICING MATURITIES MATURITY MATURITY PERIOD NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS PENSION PENSION FUND PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIOS PREMIUM PAYMENT PREMIUM PAYMENTS PRINCIPAL REPAYMENT PRIVATE INSURANCE PRIVATE PARTY PRIVATE PROPERTY PROBABILITY OF DEFAULT PUBLIC ASSET PUBLIC BUDGETS PUBLIC DEBT PUBLIC FINANCE PUBLIC SECTOR DEFICITS RATE OF RETURN REINSURANCE BROKER REINSURERS REPAYMENT OF PRINCIPAL REPAYMENTS RESERVE RESERVE FUNDS RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK ANALYSIS RISK ASSESSMENT RISK EXPOSURE RISK EXPOSURES RISK FACTORS RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK MANAGERS RISK POOLING RISK PREMIUM RISK PROFILE RISK TRANSFER SECURITIES SHORT-TERM LIQUIDITY SOVEREIGN ENTITIES STORM STORMS SUSTAINABILITY SWAP SWAPS TIMELY PAYMENT TRANSACTION TREASURIES TROPICAL CYCLONE TYPE OF DISASTER UNDERWRITING WEATHER DERIVATIVES WEATHER EVENTS WIND STORMS |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO LOANS ALTERNATIVE FUNDING AMORTIZATION AMOUNT OF RISK ASSET PORTFOLIO ASSET PORTFOLIOS ASSET VALUE ASSET VALUES BASIS RISK BENEFICIARY BIDS BOND FINANCING BOND FUND BOND FUNDS BOND INSTRUMENT BOND INSURANCE BOND INVESTOR BOND INVESTORS BOND ISSUANCES BOND ISSUER BOND MARKET BOND PORTFOLIO BOND RATING BOND RETURN BOND SPREAD BOND SPREADS BOND YIELD BONDHOLDER BONDHOLDERS BROKER CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CATASTROPHE BOND CATASTROPHE BONDS CATASTROPHE COVERAGE CATASTROPHE REINSURANCE CATASTROPHES CATASTROPHIC EVENTS CATASTROPHIC LOSSES CATASTROPHIC RISKS CLIMATE CHANGE COMMERCIAL BANKS CONTINGENT DEBT CONTRACT DESIGN COUNTRY RISK COUNTRY RISKS COUPON COUPON INTEREST RATE COUPON PAYMENT COUPON PAYMENTS COUPON RATE COUPONS CRED CREDIBILITY CREDIT GUARANTEE CREDIT GUARANTEES CREDIT QUALITY CREDIT RATING CREDIT RISK CREDIT RISKS CREDITORS CROP LOSSES CURRENCY DAMAGE ASSESSMENTS DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT LEVELS DEBT SECURITY DEFAULT RISK DEGREE OF LIQUIDITY DEPOSIT DEPOSIT INSURANCE DISASTER EVENT DISASTER EVENTS DISASTER INSURANCE DISASTER MANAGEMENT DISASTER RECONSTRUCTION DISASTER RESPONSE DISASTER RISK DISBURSEMENT DIVERSIFIED PORTFOLIO DROUGHTS DUE DILIGENCE EARTHQUAKE EARTHQUAKES EPIDEMIOLOGY EQUIPMENT EXPENDITURE EXPENDITURES EXPLOSION FINANCIAL COMPENSATION FINANCIAL CRISIS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURE FIRE FISCAL DEFICITS FLOATING RATES FLOOD FLOOD DAMAGES FLOOD INSURANCE FLOODS FUND MANAGER GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENT SUPPORT GRACE PERIOD GUARANTEE FEE HEAVY RAIN HURRICANE HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INFORMATION SYSTEM INFORMATION SYSTEMS INFORMED DECISIONS INSTRUMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE RESERVES INSURANCE RISK INSURED LOSSES INSURER INSURERS INTEREST PAYMENTS INTEREST RATE INTEREST RATE SPREAD INTERNATIONAL FINANCIAL STATISTICS INVENTORIES INVENTORY INVESTING ISSUANCE LANDSLIDES LEGAL PROVISIONS LEVEL OF RISK LIQUIDITY LOAN LOAN BALANCE LOAN CONTRACT MARKET COMPETITION MARKET INSTRUMENT MARKET INSTRUMENTS MARKET PLAYERS MARKET PRICING MATURITIES MATURITY MATURITY PERIOD NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS PENSION PENSION FUND PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIOS PREMIUM PAYMENT PREMIUM PAYMENTS PRINCIPAL REPAYMENT PRIVATE INSURANCE PRIVATE PARTY PRIVATE PROPERTY PROBABILITY OF DEFAULT PUBLIC ASSET PUBLIC BUDGETS PUBLIC DEBT PUBLIC FINANCE PUBLIC SECTOR DEFICITS RATE OF RETURN REINSURANCE BROKER REINSURERS REPAYMENT OF PRINCIPAL REPAYMENTS RESERVE RESERVE FUNDS RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK ANALYSIS RISK ASSESSMENT RISK EXPOSURE RISK EXPOSURES RISK FACTORS RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK MANAGERS RISK POOLING RISK PREMIUM RISK PROFILE RISK TRANSFER SECURITIES SHORT-TERM LIQUIDITY SOVEREIGN ENTITIES STORM STORMS SUSTAINABILITY SWAP SWAPS TIMELY PAYMENT TRANSACTION TREASURIES TROPICAL CYCLONE TYPE OF DISASTER UNDERWRITING WEATHER DERIVATIVES WEATHER EVENTS WIND STORMS Pollner, John D. Financial and Fiscal Instruments for Catastrophe Risk Management : Addressing Losses From Flood Hazards In Central Europe (Poland, Czech Republic, Hungary and Slovakia) |
| geographic_facet |
Europe and Central Asia Central Europe Poland Czech Republic Hungary Slovak Republic |
| description |
This report addresses the large flood
exposures of Central Europe and proposes efficient financial
and risk transfer mechanisms to mitigate fiscal losses from
natural catastrophes.. The report is primarily addressed to
the governments of the region which should build into their
fiscal planning, the necessary contingent funding
mechanisms, based on their exposures. While there exist
pan-European mechanisms such as the EU Solidarity Fund to
help EU members fund mega disasters, these only kick in at
extremely high loss levels. Given these issues, the
Governments of the V-4 countries should consider it a
priority to set up risk transfer mechanisms to reduce fiscal
volatility following natural catastrophes. The private
sector insurance markets in the V-4 countries appear
adequate and reflect rather high levels of penetration in
the economy and in the housing sector. Economic and fiscal
analyses based on global data also show that countries with
insurance mechanisms and markets show a stronger GDP
recovery path and lower fiscal deficits following a
disaster. However, the V-4 countries, having a common hazard
of flood, are in a unique position to develop highly cost
effective flood insurance mechanisms. As countries in
general are more concerned with supplemental fiscal
resources rather than individual property losses, the
governments of the V-4 countries can consider parametric
style contracts. Nevertheless, risk transfer or insurance
mechanisms are not the only types that need to be
considered. The analysis in this report is meant to show,
besides the financial mechanisms that would be beneficial
for risk management, what large catastrophe exposures exist
and their relation to government finances and macroeconomic
measures. Following a final phase of feasibility analysis
and market testing, the V-4 countries should thus consider
establishing a multi-country insurance pool to provide fast
emergency funding after disasters. |
| format |
Economic & Sector Work :: Other Financial Sector Study |
| author |
Pollner, John D. |
| author_facet |
Pollner, John D. |
| author_sort |
Pollner, John D. |
| title |
Financial and Fiscal Instruments for
Catastrophe Risk Management : Addressing Losses From Flood
Hazards In Central Europe (Poland, Czech Republic, Hungary
and Slovakia) |
| title_short |
Financial and Fiscal Instruments for
Catastrophe Risk Management : Addressing Losses From Flood
Hazards In Central Europe (Poland, Czech Republic, Hungary
and Slovakia) |
| title_full |
Financial and Fiscal Instruments for
Catastrophe Risk Management : Addressing Losses From Flood
Hazards In Central Europe (Poland, Czech Republic, Hungary
and Slovakia) |
| title_fullStr |
Financial and Fiscal Instruments for
Catastrophe Risk Management : Addressing Losses From Flood
Hazards In Central Europe (Poland, Czech Republic, Hungary
and Slovakia) |
| title_full_unstemmed |
Financial and Fiscal Instruments for
Catastrophe Risk Management : Addressing Losses From Flood
Hazards In Central Europe (Poland, Czech Republic, Hungary
and Slovakia) |
| title_sort |
financial and fiscal instruments for
catastrophe risk management : addressing losses from flood
hazards in central europe (poland, czech republic, hungary
and slovakia) |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000020953_20120229153123 http://hdl.handle.net/10986/2827 |
| _version_ |
1764386009634570240 |
| spelling |
okr-10986-28272021-04-23T14:02:04Z Financial and Fiscal Instruments for Catastrophe Risk Management : Addressing Losses From Flood Hazards In Central Europe (Poland, Czech Republic, Hungary and Slovakia) Pollner, John D. ACCESS TO CAPITAL ACCESS TO LOANS ALTERNATIVE FUNDING AMORTIZATION AMOUNT OF RISK ASSET PORTFOLIO ASSET PORTFOLIOS ASSET VALUE ASSET VALUES BASIS RISK BENEFICIARY BIDS BOND FINANCING BOND FUND BOND FUNDS BOND INSTRUMENT BOND INSURANCE BOND INVESTOR BOND INVESTORS BOND ISSUANCES BOND ISSUER BOND MARKET BOND PORTFOLIO BOND RATING BOND RETURN BOND SPREAD BOND SPREADS BOND YIELD BONDHOLDER BONDHOLDERS BROKER CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOW CATASTROPHE BOND CATASTROPHE BONDS CATASTROPHE COVERAGE CATASTROPHE REINSURANCE CATASTROPHES CATASTROPHIC EVENTS CATASTROPHIC LOSSES CATASTROPHIC RISKS CLIMATE CHANGE COMMERCIAL BANKS CONTINGENT DEBT CONTRACT DESIGN COUNTRY RISK COUNTRY RISKS COUPON COUPON INTEREST RATE COUPON PAYMENT COUPON PAYMENTS COUPON RATE COUPONS CRED CREDIBILITY CREDIT GUARANTEE CREDIT GUARANTEES CREDIT QUALITY CREDIT RATING CREDIT RISK CREDIT RISKS CREDITORS CROP LOSSES CURRENCY DAMAGE ASSESSMENTS DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT LEVELS DEBT SECURITY DEFAULT RISK DEGREE OF LIQUIDITY DEPOSIT DEPOSIT INSURANCE DISASTER EVENT DISASTER EVENTS DISASTER INSURANCE DISASTER MANAGEMENT DISASTER RECONSTRUCTION DISASTER RESPONSE DISASTER RISK DISBURSEMENT DIVERSIFIED PORTFOLIO DROUGHTS DUE DILIGENCE EARTHQUAKE EARTHQUAKES EPIDEMIOLOGY EQUIPMENT EXPENDITURE EXPENDITURES EXPLOSION FINANCIAL COMPENSATION FINANCIAL CRISIS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SAVINGS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURE FIRE FISCAL DEFICITS FLOATING RATES FLOOD FLOOD DAMAGES FLOOD INSURANCE FLOODS FUND MANAGER GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENT SUPPORT GRACE PERIOD GUARANTEE FEE HEAVY RAIN HURRICANE HURRICANES IMPACT OF DISASTERS INDEMNITY INDEMNITY INSURANCE INFORMATION SYSTEM INFORMATION SYSTEMS INFORMED DECISIONS INSTRUMENT INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURANCE PREMIUMS INSURANCE RESERVES INSURANCE RISK INSURED LOSSES INSURER INSURERS INTEREST PAYMENTS INTEREST RATE INTEREST RATE SPREAD INTERNATIONAL FINANCIAL STATISTICS INVENTORIES INVENTORY INVESTING ISSUANCE LANDSLIDES LEGAL PROVISIONS LEVEL OF RISK LIQUIDITY LOAN LOAN BALANCE LOAN CONTRACT MARKET COMPETITION MARKET INSTRUMENT MARKET INSTRUMENTS MARKET PLAYERS MARKET PRICING MATURITIES MATURITY MATURITY PERIOD NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS PENSION PENSION FUND PORTFOLIO PORTFOLIO DIVERSIFICATION PORTFOLIOS PREMIUM PAYMENT PREMIUM PAYMENTS PRINCIPAL REPAYMENT PRIVATE INSURANCE PRIVATE PARTY PRIVATE PROPERTY PROBABILITY OF DEFAULT PUBLIC ASSET PUBLIC BUDGETS PUBLIC DEBT PUBLIC FINANCE PUBLIC SECTOR DEFICITS RATE OF RETURN REINSURANCE BROKER REINSURERS REPAYMENT OF PRINCIPAL REPAYMENTS RESERVE RESERVE FUNDS RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK ANALYSIS RISK ASSESSMENT RISK EXPOSURE RISK EXPOSURES RISK FACTORS RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK MANAGERS RISK POOLING RISK PREMIUM RISK PROFILE RISK TRANSFER SECURITIES SHORT-TERM LIQUIDITY SOVEREIGN ENTITIES STORM STORMS SUSTAINABILITY SWAP SWAPS TIMELY PAYMENT TRANSACTION TREASURIES TROPICAL CYCLONE TYPE OF DISASTER UNDERWRITING WEATHER DERIVATIVES WEATHER EVENTS WIND STORMS This report addresses the large flood exposures of Central Europe and proposes efficient financial and risk transfer mechanisms to mitigate fiscal losses from natural catastrophes.. The report is primarily addressed to the governments of the region which should build into their fiscal planning, the necessary contingent funding mechanisms, based on their exposures. While there exist pan-European mechanisms such as the EU Solidarity Fund to help EU members fund mega disasters, these only kick in at extremely high loss levels. Given these issues, the Governments of the V-4 countries should consider it a priority to set up risk transfer mechanisms to reduce fiscal volatility following natural catastrophes. The private sector insurance markets in the V-4 countries appear adequate and reflect rather high levels of penetration in the economy and in the housing sector. Economic and fiscal analyses based on global data also show that countries with insurance mechanisms and markets show a stronger GDP recovery path and lower fiscal deficits following a disaster. However, the V-4 countries, having a common hazard of flood, are in a unique position to develop highly cost effective flood insurance mechanisms. As countries in general are more concerned with supplemental fiscal resources rather than individual property losses, the governments of the V-4 countries can consider parametric style contracts. Nevertheless, risk transfer or insurance mechanisms are not the only types that need to be considered. The analysis in this report is meant to show, besides the financial mechanisms that would be beneficial for risk management, what large catastrophe exposures exist and their relation to government finances and macroeconomic measures. Following a final phase of feasibility analysis and market testing, the V-4 countries should thus consider establishing a multi-country insurance pool to provide fast emergency funding after disasters. 2012-03-19T10:14:33Z 2012-03-19T10:14:33Z 2011-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000020953_20120229153123 http://hdl.handle.net/10986/2827 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Economic & Sector Work :: Other Financial Sector Study Europe and Central Asia Central Europe Poland Czech Republic Hungary Slovak Republic |