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How to Understand the Role of Insurance Mechanism in a Global Pandemic?

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  • Feng Kong

    (College of Humanities and Development Studies, China Agricultural University, Beijing 100083, China
    Center for Crisis Management Research, Tsinghua University, Beijing 100084, China)

Abstract

The COVID-19 epidemic has seriously affected global economic and social development. The extent to which insurance can play a role in preventing and transferring the risk of infectious diseases has become one of the major concerns of the community. This paper first analyzes the main contents of the U.S. Pandemic Risk Insurance Act during the COVID-19 epidemic and its insights to the global audiences. Then, on the basis of the definition of global pandemic, this paper analyzes the great challenges faced by the insurability of the infectious diseases’ catastrophe from the regional impact, risk accumulation, correlation with capital markets, and accuracy of catastrophe model, and the insurability of local infectious diseases. Finally, this paper presents the key points of the top-level design of the risk transfer mechanism of infectious disease insurance in China. This paper is informative in understanding the role of insurance in the risk transfer of infectious diseases.

Suggested Citation

  • Feng Kong, 2021. "How to Understand the Role of Insurance Mechanism in a Global Pandemic?," IJERPH, MDPI, vol. 18(13), pages 1-11, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:13:p:6743-:d:580298
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    References listed on IDEAS

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    Cited by:

    1. Feng Kong & Yifei Wang, 2022. "Better understanding of climate catastrophe insurance in China: issues and opportunities, international insights, and directions for development," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 114(3), pages 2969-2990, December.
    2. Senara Eggleton & Özlem Gürses, 2023. "Reinsuring pandemics: the role of government and public–private partnerships between reinsurers and governments," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(3), pages 552-576, July.

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