Natural Catastrophe Risk, Insurance and Economic Development

The economic costs of natural disasters in the global world have been increasing in recent decades. Natural catastrophe risk has become a heavy issue for human society. How to deal with it leads to wide concerns. Some people think insurance is the best method; In fact it is only a effective way; what's more, the role of insurance depends on insurance regulators, governments, consumers and capital market working together, other than insurers. In section one, this paper describes the global natural catastrophe risk; In section two, it analyzes the relation between natural catastrophe risk management and economic growth briefly; In the last part, it treatises the role of insurance for natural catastrophe risk management. (C) 2011 Published by Elsevier Ltd. Selection and peer-review under responsibility of RIUDS