Formulating Executive Bylaws for the Universal Natural Catastrophe Insurance Fund in Iran Using Experiences of Selected Countries

categorytitle / Research Update .

time : 00:00
Date : Sun Apr 11, 2021
news code : 4723

In order to increase the amount of permissible risk absorption and aggregation in natural catastrophe insurance, funds are an appropriate solution. The major objective of setting up insurance funds is to establish procedures to compensate losses based on the cooperation and engagement among the participants. Participating in premium payment enables the funds to pay for policyholders’ losses with much ease, according to PRIAO, IRC.

Crisis management following a natural catastrophe and paying for the incurred losses often have enormous burden on the relevant authorities. Among the various forms of natural catastrophe risk management and the different instruments and strategies for controlling a pertinent risk, insurance has shown better efficiency when compared with other instruments in similar occasions. The research report “Exploration of Experiences of Selected Countries in Natural Catastrophe Insurance with the Aim of Formulating Executive Bylaws for the Universal Natural Catastrophe Insurance Fund in Iran” deals with such issues and beyond authored by Dr. Morteza Bastami, Associate Fellow at International Institute of Earthquake Engineering and Seismology (IIEES), Mrs Ostadramezan, IRC Researcher, and Amirreza Taherian, Masters in earthquake engineering at IIEES.

The report reviews the experiences and usages of insurance instruments in natural catastrophe risks in various countries, in order to formulate the executive bylaws for the establishment of the Universal Natural Catastrophe Insurance Fund in Iran.

Since the earthquake funds in Turkey and New Zealand have governmental structure and are more similar to Universal Natural Catastrophe Fund in Iran, their structure and regulations are usable for the formulations of necessary bylaws. These two funds are elaborately explained in second and third chapters of the report. Chapters 4-9 review and discuss the following cases: California Earthquake Authority, earthquake insurance in Japan, natural perils insurance in Europe, natural catastrophe fund in China, natural perils insurance in Australia, ILS for seismic risks in Latin America, and the structure of executive bylaws for the natural catastrophe insurance in Iran. The final chapter proposes the themes of the executive bylaws for Universal Natural Catastrophe Fund in Iran, based on similar bylaws and regulations imposed on funds in various countries.

Those interested can access this report in the following web address: http://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1293.

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