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| Content Provider | OECD iLibrary |
|---|---|
| Organization | OECD |
| Abstract | In this study, we have so far mainly discussed the applicability of traditional insurance schemes as an instrument to compensate damage caused by systemic risks. Moreover, we focused principally on liability insurance. In this section, we will show that the general principles of insurance, which were discussed above, are also relevant even when traditional insurance undertakings are unable to provide cover in the form of liability insurance, and other compensation mechanisms will be outlined. For instance, the general idea that, no matter what type of compensation system is put in place, it should always be organised in such a manner that the party creating the risk should also bear the financial consequences of it insofar as possible, is a principle which is not only crucial for liability insurance. This idea of risk differentiation and the fact that a liability system should provide adequate incentives for prevention remains valid no matter what type of compensation mechanism one seeks... |
| Page Count | 66 |
| Starting Page | 141 |
| Ending Page | 179 |
| Language | English |
| Publisher | OECD Publishing |
| Publisher Date | 2003-07-28 |
| Access Restriction | Open |
| Subject Keyword | Finance and Investment |
| Content Type | Text |
| Resource Type | Chapter |
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