Fostering Catastrophe Bond Markets in Asia and the Pacific
As climate change increases exposure to natural disasters, countries need new solutions
to mitigate risks of natural hazards. For many in Asia and the Pacific, mobilising
existing resources is not enough: they need to consider a grand design of disaster
risk financing strategies. Catastrophe bonds (CAT bonds) can be an effective, market-based
financing tool for the region. While the global CAT bond market has grown steadily
since the 1990s, it remains weakly developed in Asia and the Pacific. Its successful
development there requires robust purpose-built legal frameworks; developed general
bond markets, especially in local currency; appropriate capacity building; and data-driven
pricing models. This report explores each of these conditions along with policy suggestions
for fostering them, and discusses the development of multi-country CAT bonds in Asia
and the Pacific.
Available from February 14, 2024
In series:The Development Dimensionview more titles