Insurance and finance: new problems, new directions

Over the last decades, there has been a consistently increasing growth of insured losses due to nature-related events which led the insurance and finance industries to develop alternative risk transfer products. This talk aims to propose a Natural Multi-Hazard Risk Assessment framework for the quantification of financial and insurance risks arising from multiple natural hazards. To set up this framework one needs to study four major topics related to risk assessment: modeling natural hazard risks, insurance/re-insurance markets, financial tools and financial markets. The proposed framework manages the multi-hazard risk by transferring it to insurance and financial markets by designing new products that alleviate part of the risk by implementing securitization mechanisms to achieve access to adequate funds within financial markets.