Enhancing the Insurance of Aviation War and Terrorism Risks Through the Use of Alternative Risk Transfer and Risk Financing Mechanisms

  • Yaw Otu Mankata Nyampong
Chapter

Abstract

This chapter discusses alternative/complementary mechanisms for enhancing the ability of conventional insurance markets to provide sustainable coverage for aviation war and terrorism risks. At the outset, it is important to recall that one of the fundamental reasons why conventional insurance markets withdraw coverage and sharply raise premiums charged for insuring aviation war and terrorism risks following the occurrence of a catastrophic event such as September 11, 2001, is the immense difficulty they experience in raising capital during those periods. As such, the need to find innovative, non-conventional ways of raising capital to back insurance coverage of catastrophic risks has been a subject of much deliberation in the conventional insurance industry over the years, and a number of steps have been taken in that direction. Alternative Risk Transfer (ART) mechanisms are one of the major areas that have been explored.

Keywords

Credit Risk Credit Default Swap Basel Committee Collateralized Debt Obligation Catastrophic Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Yaw Otu Mankata Nyampong
    • 1
  1. 1.Faculty of LawMcGill UniversityMontrealCanada

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