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Calamità naturali e assicurazione: elementi di analisi per una riforma

  • Angelo Baglioni

    ()

    (DISCE, Università Cattolica)

  • Michele Grillo

    ()

    (DISCE, Università Cattolica)

Private insurance markets provide insufficient coverage for risks coming from natural disasters. We argue that in such markets the typical market failure is mainly due to reasons other than asymmetric information. More specifically, the low probability of a disaster, together with the height of the economic damage normally involved and the strong correlation among individual risks raise the insurers’ and lower the potential clients’ reservation price. The solution recently provided within the market (the CAT bonds) is interesting but unsatisfactory. Therefore the intervention of the public sector is needed. After analyzing the experience of some countries (USA, France, Spain, Switzerland), we propose a reform plan for Italy that avoids the discretionary ex post public intervention, allows an inter-temporal risk diversification, and avoids the waste of resources in risk selection (a typical feature of the private provision of insurance).

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File URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0089.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia e Finanza with number ief0089.

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Length: 29
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:ctc:serie3:ief0089
Contact details of provider: Web page: http://www.unicatt.it/Istituti/EconomiaFinanzaEmail:


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