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Bulgarian Catastrophe Insurance Initiative: Feasibility Study

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Publication date
18/06/2008
Number of Pages
90
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Europe
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Natural disasters
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Eugene Gurenko, Alexander Itigin, Denisa Dumitru
Organization
The World Bank

This report consists of two main Sections and Technical Annexes. Section I first reviews the international experience in catastrophe risk transfer; it then analyses three different design options for the Bulgarian Catastrophe Insurance Pool and offers a detailed vision for the organizational, operational and financial organization of the national insurance program. Section II presents a preliminary actuarial pricing model for earthquake risk in Bulgaria that allows to price different catastrophe insurance products in each of seven cities chosen for the study. The Technical Annexes present the indicative prices for different insurance products as well as the proposed design of the catastrophe insurance policy that may be offered by the Bulgarian insurance pool.