Disaster Risks are the cause of many economic losses and fatalities all over the world. Insurance and reinsurance industry has had a close eye on the catastrophic risks in Latin America, as it is a mechanism for disaster risk management and an incentive of mitigation in the region. Catastrophe insurance is the market in charge of covering losses caused by catastrophic events and a growing market worldwide. Imperfections and different reasons for underinsurance have made the region a hub of vulnerability. Due to its geographical location, social and economic situation, Latin America has a high exposure to disasters that have created many monetary consequences and mortalities over its history. However, there is still a gap in insurance coverage and a lack of information. There is evidence that insurance as an ex-ante financing tool has many benefits for developing regions as the case of the Latin American countries. Insurance is an incentive of mitigation through risk-based price signals, and measures taken by insurance companies themselves. Though, this study intends to present a clear lack of cooperation within the region in terms of regulatory frameworks and international collaboration that is reflected in the lack of information for the insured and insurers.
Therefore, the research of disaster risks and (re)insurance in Latin America provides evidence of the high risk that the region presents and the deficiencies that the catastrophic insurance market has in the region, and highlights the necessity for mechanisms for enhancing the market, to develop new insurance solutions and create a region base collaboration in order to promote the disaster risk management using insurance as a tool.
Citación recomendada (normas APA)
Andrés Felipe Parra Salazar, "Disaster Risks and (Re)insurance in Latin America", América Latina:-, 2017. Consultado en línea en la Biblioteca Digital de Bogotá (https://www.bibliotecadigitaldebogota.gov.co/resources/2089155/), el día 2025-05-22.
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