Catastrophic risk financing models for sustainable development
Catastrophic risk financing models for sustainable development

Summary/Abstract: Catastrophic risk financing system is of national economic relevance. Its positive contribution to sustainability depends on system meeting a number of conditions. In the article four models of catastrophic risk financing are identified: market model, transfer model, supported market model and public-private partnership model. Their comparative analysis is performed according to chosen criteria. The main conclusion is that there are a lot of situations in which aims that should carry out this system exclude each other. The author believes that catastrophic risk financing system serves sustainable development best when the system promotes prevention and when it assures sufficient compensation for victims. Thereof public-private partnership model seems to be the best solution for sustainable catastrophic risk financing.

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