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Capital Markets or Alms?: An Emerging Paradigm Shift in Disaster Funding

Published 01 Nov 2006
Reference 5408
Industry Insurance
Region Global
popular
Prizes & Awards

Winner of 2007 EFMD Case Writing Competition, Public Sector Innovations Category

Summary

The case narrates the process of testing the concept of weather derivatives in developing countries. It describes why the World Food Programme chose Ethiopia as the pilot case and the process that led to the selection of AXA Re, the giant insurance company

Teaching objectives

The case helps discuss the contribution of the financial sector to a more equitable, timely and efficient response to humanitarian disasters. It touches upon the importance of protecting development gains. It can also be used in finance courses as it provides a good example of risk aggregation and layering as well as new product development in the insurance industry.

Keywords
  • RD1106
  • AR2006
  • AR0607
  • Insurance
  • Disaster Management
  • World Food Programme
  • Disaster Funding
  • AXA Re
  • Development
  • Supply Chain Managment