A recent event held in central Asia, the Azerbaijan International Forum dedicated to Catastrophe Risks and Construction Safety which is an event assisted by the UN Economic Commission, saw delegates discussing measures to deal with catastrophe risks. The Central Asian and Caucasus countries are amongst the most exposed to catastrophe risks globally.
A solution which received much discussion is the establishment of a catastrophe pool of insurance for catastrophic events within this area, following the model used in Romania.
UN and local government officials have expressed interest in this idea but say that changes to legislation may be required as well as greater cooperation from re/insurance companies.
Pooling of insurance facilities is becoming popular and we expect to see organisations joining forces to enable provision of more affordable catastrophe insurance. It would be good to see a pool approach taken which utilises index-based insurance structures in a similar manner to the Caribbean model of the CCRIF.