Insurance in mitigating the financial consequences of natural disasters

Abstract

The objective of the article is to delineate the role of insurance in alleviating the financial ramifications of natural disasters. To achieve this objective, two research questions were formulated: 1) What are the magnitude and economic implications of natural disasters? 2) How does disaster insurance contribute to the process of asset reconstruction? In preparing the article, the authors conducted a review of literature pertaining to the subject matter and analysed secondary data sourced from reports and publications of international institutions and organisations involved in addressing the financial impact of natural disasters. Limitations of the conducted research include variations in the scale and impact of disasters across different countries, leading to a lack of uniform legal frameworks regarding the utilisation of insurance in mitigating the financial fallout of natural disasters.