INTERNATIONAL NETWORK ON FINANCIAL MANAGEMENT OF LARGE-SCALE CATASTROPHES

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Nov 9, 2013 (3 years and 11 months ago)

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1

INTERNATIONAL NETWORK

ON FINANCIAL MANAGEMENT

OF LARGE
-
SCALE CATASTROPHES

Global Conference on Insurance and
Reinsurance

for Natural Catastrophe Risk



Istanbul

8
-
9 December



Flore
-

Anne Messy

OECD

2

Creation of a new International Network on
Financial Management of Large
-
Scale
Catastrophes


Series of increasing large
-
scale natural and man made disasters



OECD recent work on man
-
made and natural large
-
scale disasters:




Two key publications in 2005:


Terrorism risk insurance in OECD countries (ministerial mandate)


Catastrophic risks and insurance (proceedings of the conference)



Two conferences on large
-
scale catastrophes including emerging
economies


in Paris in November 2004




in Kuala Lumpur in November 2005



Launching of the network in 2005 under the aegis of the OECD
Insurance and Private Pension Committee and the Committee for
Financial Markets

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A.

International Network on Financial

Management of Large
-
Scale Catastrophes:


Objectives



Provide a
Forum to exchange information and
experience on the financial management of large
-
scale
catastrophes

and related operational issues.



Analyse related
tools and schemes implemented in OECD
and non OECD countries
; c
onsider the
scope for
improved or new tools, products, schemes, strategies,
and partnerships, to respond to emerging risks and
challenges
, in particular in relation to the threat of large
-
scale natural catastrophes and modern terrorist attacks.



Develop
policy options

aimed at improving catastrophe
mitigation and compensation strategies.

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B.

International Network on the Financial

Management of Large
-
Scale Catastrophes:


W
ork Plan



1.

Clarifying new and emerging challenges:


Analysis of new and emerging threats and
vulnerabilities (including those entailed by the
development of interdependent critical networks or of
the current and potential evolution of the liability
framework);


Analysis of the past and potential impact of disasters
on insurance, reinsurance and financial markets and
of possible financial systemic risks in connection with
natural disasters and terrorist acts.

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B.

International Network on the Financial

Management of Large
-
Scale Catastrophes:


W
ork Plan

(cont.)


2.

Improving risk assessment, anticipation, prevention, and
mitigation:


Developments in risk modelling; linking risk assessment with risk
-
transfer instruments (rates, portfolio management, scope of risk
transfer);


Options to enhance disaster risk awareness and the need for
prevention and adequate financial coverage (insurance in
particular) both among population and corporate entities;


Options for private and public incentives to prevention and
mitigation (
e.g, regarding land use, building codes, warning
systems etc.); integrating mitigation with risk
-
transfer instruments;

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B.

International Network on the Financial

Management of Large
-
Scale Catastrophes:


Work Plan

(cont.)

3.

Enhancing crisis management and compensation capacity


Catastrophe contingency planning, incl. for the financial market
infrastructures; improving responsiveness to “out of the box” scenarios;


Crisis management and loss mitigation; incl. sharing of national post
-
disaster reviews of performance;


Organisation of financial compensation;


Evolution of ARTs


scope for new products/possible changes in their
legal/accounting/fiscal environment?


Market and regulatory evolution regarding catastrophic risk reserving by
insurance and reinsurance companies.

7

C.
International Network on the Financial


Management of Large
-
Scale Catastrophes:

First Outputs



First policy guidance report to be released end of
2006



Conference on the financial management of large
-
scale catastrophes to be organised in Asia end of
2006

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CONTACT INFORMATION



OECD Website :
www.oecd.org/daf


Flore
-
Anne Messy

OECD Financial Affairs Division


Tel: + 33 1 45 24 96 56

E
-
mail: flore
-
anne.messy@oecd.org

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THANK YOU

FOR YOUR ATTENTION