Insurance for economic losses caused by pandemics
| Autor: | Joseph Qiu, Robert Hartwig, Greg Niehaus |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Government
Economics and Econometrics 050208 finance Pandemic business.industry 05 social sciences Pooling Public policy Public Policy Monetary economics Capital Supply and demand Insurance Capital (economics) Accounting 0502 economics and business Economics Business Management and Accounting (miscellaneous) Original Article 050207 economics business Risk management Financial services Externality Finance |
| Zdroj: | The Geneva Risk and Insurance Review |
| ISSN: | 1554-9658 1554-964X |
| DOI: | 10.1057/s10713-020-00055-y |
| Popis: | Private insurance coverage for economic losses caused by pandemics is limited. While many factors contribute to reduced demand and supply, we attribute the low amount of coverage to the high levels of capital that would be required to credibly insure pandemic economic losses with cross-sectional pooling mechanisms. Pooling over time significantly reduces the required capital and therefore the cost of insurance, but as a practical matter likely requires a government with the ability to borrow and tax. We also argue that insurance for economic losses due to pandemics likely generates positive externalities for the macroeconomy. We therefore analyze the general tradeoffs associated with different ways that a government can promote such insurance. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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