 Pandemic insurance: A portfolio management approachAlexis Louaas and
Pierre Picard
Journal of Financial Transformation, 2021, vol. 54, 70-75 Abstract: The COVID-19 crisis has highlighted the deficiencies of business interruption insurance when the economic activity is deeply impacted by a worldwide pandemic. Pandemics have a systemic nature, which distinguishes them from other catastrophic risks such as natural disasters or large-scale industrial accidents. This specificity makes it impossible to mutualize the pandemic risk through insurance or reinsurance. In facing this challenge, capitalization-based insurance mechanisms – so far limited to life insurance – offer a renewed perspective on corporate risk management and provide new opportunities to the insurance industry. In this perspective, we explore the reasons why business interruption insurance should be backed by a specific portfolio-management strategy, and how such a combination would allow insurers to offer coverage against pandemic risk. Keywords: Insurance; Pandemics; Pandemic Insurance; business interruption insurance; insurers (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1684 Access Statistics for this article Journal of Financial Transformation is currently edited by Prof. Shahin Shojai More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005. |
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