Although governments could protect against the economic devastation of future pandemics by requiring businesses to insure against pandemic-related risks, insurers do not currently offer that insurance. Even given sufficient actuarial data to set underwriting standards and rate tables, insurers are concerned that they lack sufficient capacity, as an industry, to cover pandemic-related risks, which are likely to occur worldwide and to be highly correlated. This Policy Brief examines how risk securitization could help insure those risks by utilizing the “deep pockets” of the global capital markets, which have a far greater risk-absorbing capacity than the global insurance markets.
Steven L. Schwarcz Duke University School of Law, Durham (USA)
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.