THE EFFECTS OF NATURAL DISASTERS ON THE INSURANCE MARKET

Natural disasters exert a significant impact on human communities, property, infrastructure, and the environment. Understanding the need for insurance coverage against the consequences of such events is essential for an effective response to the losses they generate.

One of the key aspects of this analysis is the impact of natural disasters on the insurance market and the strategies for managing these risks. Insurance compa- nies face challenges in assessing the adequacy of premiums, while simultaneously dealing with the need for innovation in the provision of insurance coverage. This paper examines how natural disasters affect the insurance market, how risk manage- ment strategies are developed, and which innovations are applied in the insurance sector, with particular emphasis on parametric insurance and the advantages and challenges associated with it.

Keywords: natural disasters, parametric insurance, natural disaster risk management