Loading…
Welcome to the ARIA 2021 Annual Meeting Agenda App. You are seeing this in simple view. Click on any session to see Presenters, Discussants and a Session Description. Click on Presenters to find a single presenter and their sessions. If you find an error, please email gphillips@aria.org. Registrants have been added and will continue to be updated until 7/29/21 when registration closes. Zoom links will be shared directly with all participants two days prior to the conference. Please make notifications@sched.com a "safe sender" in your email system. We will be sending messages throughout the conference through this medium. 
Back To Schedule
Monday, August 2 • 2:15pm - 3:45pm
2B2 Insurability of Pandemic Risks

Sign up or log in to save this to your schedule, view media, leave feedback and see who's attending!

Feedback form is now closed.
Danjela Guxha; IVW University of St. Gallen; Hato Schmeiser, Institute of Insurance Economics, University of St. Gallen; Anastasia Kartasheva, IWV-University of St. Gallen; Helmut Grundl, Goethe University Frankfurt

The paper analyzes the scope for the private market for pandemic insurance and discusses the potential role of the financial market and the government. Building on a premise that pandemics are classified as catastrophic risks by the insurance industry, we start by providing a framework that explains theoretically how the catastrophe insurance supply and demand depend on the skewed and fat-tailed loss distributions and the co-movement between insurance stocks performance and the financial market. We use the model to estimate the supply of insurance for natural catastrophes. Then, by using the high-frequency data that tracks the economic impact of the COVID-19 pandemic in the US, we calibrate the loss distribution of a hypothetical insurance contract designed to alleviate the impact of the pandemic on small businesses and employment. The model of catastrophic insurance supply provides a calibration of the supply of pandemic insurance and allows us to compare it to other types of catastrophic insurance. Building on our estimation results, we discuss the scope for the risk transfer to the financial market and the role of the government. Keywords: pandemic insurance, catastrophe risk transfer, private-public partnerships JEL Codes: G22, G28, G32, J65, H84, Q54

Discussant
avatar for Hao Lu

Hao Lu

Assistant Professor, Saint Mary's University

Presenters
avatar for Anastasia Kartasheva

Anastasia Kartasheva

Associate Professor, University of St. Gallen
DG

Danjela Guxha

IVW- University of St. Gallen
avatar for Hato Schmeiser

Hato Schmeiser

Managing Director, University of St. Gallen, Institute of Insurance Economics



Monday August 2, 2021 2:15pm - 3:45pm EDT