Understanding and strengthening the role of catastrophe lottery in catastrophe risk transfer system

Feng Kong

Corresponding authors: Feng Kong, e-mail: kongfeng0824@foxmail.com

Journal of Contingencies and Crisis Management, Published online

 

Abstract: Against the background of global climate change and rapid urbanization, all kinds of catastrophic events occur, which challenge regional socio‐economic and sustainable development. This Forum contribution introduces the tools and systems of catastrophe risk transfer and its characteristics in practice. The case is then made that the catastrophe risk transfer system needs to be innovated. It is found that the current catastrophe risk transfer system in China cannot on its own meet the needs of catastrophe risk transfer. This contribution argues that a lottery mechanism is one important means for catastrophe risk transfer. Its basic function is risk transfer and thereby raises funds for disaster recovery and reconstruction. Finally, this contribution suggests ways in which to normalize the independent issuance of catastrophe lottery, to strengthen the relevant research work for catastrophe lottery and to explore the catastrophe risk transfer mode of the combination of catastrophe lottery and disaster insurance.

Keywords: catastrophe lottery; catastrophe risk; China; disaster relief financing; natural disaster risk transfer

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To link to this article: https://doi.org/10.1111/1468-5973.12338