Are catastrophe bonds effective financial instruments in the transport and infrastructure industries? Evidence from international financial markets
Journal Title: Business and Economic Horizons - Year 2018, Vol 14, Issue 2
Abstract
We analyse the effectiveness of catastrophe bonds for the financial management of catastrophic risk in the transport and infrastructure industries. We illustrate how these financial instruments are becoming a valuable tool for non-financial firms in the risk management of catastrophic events, supplementing the traditional insurance/reinsurance channel, especially during times of constraints in the insurance industry. We also review cat bond issues sponsored by infrastructure and transport companies, highlighting the usefulness of these structured financial instruments in the management of the catastrophe exposure in these industries. Policy indications are finally given.
Authors and Affiliations
Fabio Pizzutilo, Elisabetta Venezia
Keywords
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- EP ID EP442301
- DOI 10.15208/beh.2018.20
- Views 77
- Downloads 0
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