Research initiative on insurance and reinsurance for natural disaster risks

TSE and the Caisse Centrale de Réassurance (CCR) are partnering to analyze the role of the Cat Nat program in the functioning of the French natural disaster insurance market. This initiative aims to better understand the effects of public reinsurance on the insurability of risks, risk pooling across regions and categories of policyholders, as well as on social well-being.
The partnership is based on the development of an economic model of the natural disaster insurance and reinsurance market, calibrated using detailed data provided by CCR. The research aims in particular to evaluate various public policy scenarios and analyze their consequences for households, insurers, and public authorities.
This collaboration brings together experienced researchers and doctoral students from TSE around a research program at the intersection of insurance economics, climate economics, and public policy analysis.

Activities

The partnership between TSE and CCR encompasses several areas of activity:

• Research on the economic challenges associated with natural disasters and their insurance;
• Analysis of the impact of public reinsurance mechanisms on insurance markets and social welfare;
• Dissemination of research findings to industry stakeholders and policymakers.

The study conducted within this framework takes a long-term perspective aimed at improving understanding of the challenges posed by the increase in natural risks linked to climate change and at contributing to the public debate on risk-sharing and mutualization mechanisms.