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Record W4313378573 · doi:10.1111/rmir.12229

Securitizing pandemic‐risk insurance

2022· article· en· W4313378573 on OpenAlexaff
Lorilee Medders, Steven L. Schwarcz

Bibliographic record

VenueRisk Management and Insurance Review · 2022
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicInsurance and Financial Risk Management
Canadian institutionsCentre for International Governance Innovation
FundersFox School of Business, Temple UniversityTemple University
KeywordsReinsuranceSecuritizationBondBusinessPandemicGovernment (linguistics)Capital marketFinanceFinancial systemEconomicsActuarial scienceCoronavirus disease 2019 (COVID-19)

Abstract

fetched live from OpenAlex

Abstract Catastrophe (CAT) bonds are a means to share economic losses resulting from natural disasters including hurricanes, earthquakes, and—more recently, as used by the World Bank—pandemics. Because these pandemic CAT (PCAT) bonds were subsidized by government donations and, absent the occurrence of covered pandemics, were full recourse to the World Bank, this precedent was not market‐tested for the commercial viability of such instruments. This paper examines PCAT bonds as a means of securitization for pandemic risk through the lenses of reinsurers′ unmet capital needs and the requirements for the potential viability of a PCAT‐bond market. Where the reinsurance market has limited capacity to either absorb or spread the risks of global‐level CATs, risk securitization may be effective for layered risk sharing. The authors explore whether pandemic risk may be insurable by increasing reinsurance capacity to handle losses from business interruptions that are due to unintentional pandemics. Are PCAT bonds a potential means to achieving this protection? Historically, insurers were reluctant to enter this market because the required spreads and associated bond‐issuance expenses were considered prohibitively high. The situation has improved, although there remains much room and need for growth in this market.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.004
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.002
Threshold uncertainty score0.010

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0020.004
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.001
Science and technology studies0.0000.001
Scholarly communication0.0010.001
Open science0.0000.000
Research integrity0.0010.001
Insufficient payload (model declined to judge)0.0020.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.021
GPT teacher head0.223
Teacher spread0.202 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations7
Published2022
Admission routes1
Has abstractyes

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