Management of Catastrophic Risks. The Case of Karlovo Area Flood 2022
Management of Catastrophic Risks. The Case of Karlovo Area Flood 2022

Author(s): Mihaela Vladimirova
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Business Economy / Management, Public Law, Public Finances, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: catastrophic risk; social welfare; tax burden; voluntary insurance; catastrophic insurance pool
Summary/Abstract: Effectively addressing catastrophic risks stemming from natural hazards holds significant societal importance, highlighting the interconnection between public finance and insurance. Within the context of Bulgaria's susceptibility to flood-related risks, this study evaluates the existing model designed for mitigating post-event damages. The effectiveness of this model is examined through the case study of the 2022 Karlovo area flood. In proposing methods for enhanced risk management, three distinct tools are introduced: the promotion of voluntary insurance, the allocation of a specific budget line item for natural hazard damages, and the establishment of a catastrophic insurance pool. To assess the viability of these approaches, a comparative analysis is conducted, drawing parallels with the catastrophic insurance pool in Romania.

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