NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC
Pandemic risks, such as Covid-19, are difficult to insure as they are characterized by multiple factor risks and losses and involve different types of businesses and people simultaneously. The scarcity of time series and statistical data prevents insurers from developing correct pricing. We propose...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2022-05-01
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| Series: | Economic Review |
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| Online Access: | https://www.er.ef.untz.ba/index.php/er/article/view/34 |
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| _version_ | 1823859523550445568 |
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| author | Marina Brogi Valentina Lagasio Fabrizio Santoboni |
| author_facet | Marina Brogi Valentina Lagasio Fabrizio Santoboni |
| author_sort | Marina Brogi |
| collection | DOAJ |
| description |
Pandemic risks, such as Covid-19, are difficult to insure as they are characterized by multiple factor risks and losses and involve different types of businesses and people simultaneously. The scarcity of time series and statistical data prevents insurers from developing correct pricing. We propose a model of catastrophe risk with Non-Damage Business Interruption (NDBI) policies to manage the pandemic risk due to the spread of Covid-19. The model employs a Monte Carlo simulation of different lockdown scenarios: the frequency and severity distributions of losses of Italian SMEs. The main results show the importance of a Covid-19 lockdown exposure NDBI policy, which benefits not only SMEs but also the insurer.
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| format | Article |
| id | doaj-art-2368019188ff4a30a6d8d02ac178a69d |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2022-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-2368019188ff4a30a6d8d02ac178a69d2025-02-11T00:32:52ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2022-05-01201 NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMICMarina Brogi0Valentina Lagasio1Fabrizio Santoboni2Faculty of Economics, Sapienza University of Rome, ItalyFaculty of Economics, Sapienza University of Rome, Italy,Faculty of Economics, Sapienza University of Rome, Italy Pandemic risks, such as Covid-19, are difficult to insure as they are characterized by multiple factor risks and losses and involve different types of businesses and people simultaneously. The scarcity of time series and statistical data prevents insurers from developing correct pricing. We propose a model of catastrophe risk with Non-Damage Business Interruption (NDBI) policies to manage the pandemic risk due to the spread of Covid-19. The model employs a Monte Carlo simulation of different lockdown scenarios: the frequency and severity distributions of losses of Italian SMEs. The main results show the importance of a Covid-19 lockdown exposure NDBI policy, which benefits not only SMEs but also the insurer. https://www.er.ef.untz.ba/index.php/er/article/view/34Covid-19insurance policiesreinsurancecatastrophe risk |
| spellingShingle | Marina Brogi Valentina Lagasio Fabrizio Santoboni NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC Economic Review Covid-19 insurance policies reinsurance catastrophe risk |
| title | NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC |
| title_full | NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC |
| title_fullStr | NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC |
| title_full_unstemmed | NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC |
| title_short | NON-DAMAGE BUSINESS INTERRUPTION INSURANCE POLICIES DURING THE COVID-19 PANDEMIC |
| title_sort | non damage business interruption insurance policies during the covid 19 pandemic |
| topic | Covid-19 insurance policies reinsurance catastrophe risk |
| url | https://www.er.ef.untz.ba/index.php/er/article/view/34 |
| work_keys_str_mv | AT marinabrogi nondamagebusinessinterruptioninsurancepoliciesduringthecovid19pandemic AT valentinalagasio nondamagebusinessinterruptioninsurancepoliciesduringthecovid19pandemic AT fabriziosantoboni nondamagebusinessinterruptioninsurancepoliciesduringthecovid19pandemic |