Nepal and World Bank explore earthquake catastrophe bond
A mandate begins work on a possible capital-markets instrument for earthquake risk. No bond, payout trigger or coverage amount has been agreed.
For you: Engineering design reduces physical risk, while disaster-risk financing can help governments fund recovery after a shock. Students can study how a defined trigger, exposure model and basis risk shape a catastrophe bond, while keeping the boundary clear: a financing instrument does not replace seismic design, resilient infrastructure or an approved public plan.
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