Are Catastrophe Bonds Effective Financial Instruments in the Transport and Infrastructure Industries? Evidence from International Financial Markets

Business and Economic Horizons, 14(2), pp. 256-267 (2018)

Posted: 20 Jun 2018

See all articles by Fabio Pizzutilo

Fabio Pizzutilo

Università degli Studi di Bari “Aldo Moro”

Elisabetta Venezia

Independent

Date Written: April 16, 2018

Abstract

We analyse the effectiveness of catastrophe bonds for the financial management of catastrophic risk in the transport and infrastructure industries. We illustrate how these financial instruments are becoming a valuable tool for non-financial firms in the risk management of catastrophic events, supplementing the traditional insurance/reinsurance channel, especially during times of constraints in the insurance industry. We also review cat bond issues sponsored by infrastructure and transport companies, highlighting the usefulness of these structured financial instruments in the management of the catastrophe exposure in these industries. Policy indications are finally given.

Keywords: catastrophe bonds, risk management, investment analysis, public investment, infrastructures, transportation

JEL Classification: G32, R42, R53, H54

Suggested Citation

Pizzutilo, Fabio and Venezia, Elisabetta, Are Catastrophe Bonds Effective Financial Instruments in the Transport and Infrastructure Industries? Evidence from International Financial Markets (April 16, 2018). Business and Economic Horizons, 14(2), pp. 256-267 (2018), Available at SSRN: https://ssrn.com/abstract=3163575

Fabio Pizzutilo (Contact Author)

Università degli Studi di Bari “Aldo Moro” ( email )

largo Abbazia S. Scolastica, 53
Bari, 70124
Italy

Elisabetta Venezia

Independent ( email )

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