재난위험과 자본시장의 법적 메커니즘에 관한 연구

Climate change is one of the most fundamental challenges of our time. Catastrophes due to severe weather are perhaps the costliest accidents humanity faces. Governments cannot regulate the weather, but through smart policies and well-designed incentives, it can influence human exposure to the risk of bad weather. Thus regulating weather risk is an increasingly urgent social issue. There is little doubt that the frequency and magnitude of weather-related disasters are rising over time. What in the past would have qualified as ‘100-year storms’ would become ‘10-year storms’. There are many ways that we can reduce the risk of increasingly large and potentially devastating catastrophes. Insuring capacity is not an insurmountable problem for private insurance of weather risk. Inevitably, climate change does and will continue to affect the insurance industry, whose function is to shield individuals and businesses from risk. The capital markets represent a potential solution to this capacity shortage, and the maturity of the cat bond market indicates they may be the best solution. This Article explored the role of capital market, alternative risk transfer, and catastrophe insurance market as a substitute for direct regulation of risks posed by severe weather.