Application of pandemic bonds as an insurance tool for mass disease

Abstract

The purpose of the article is to analyze the mechanisms of action of pandemic bonds to manage the risks of mass diseases. The research methodology consists in the use of a set of methods: dialectical, mathematical, statistical, historical, comparative. The scientific novelty of the work consists in the definition of the latest mechanisms of risk distribution and profitability among the participants of insurance against mass diseases. Conclusions. Recently, the problem of redistribution of capital in conditions of risks of mass diseases has gained considerable importance. Traditional financial instruments do not provide an answer to the tasks, so it is necessary to use innovative instruments that allow to reduce uncertainty and help those affected by pandemics - pandemic bonds. Keywords: pandemic bond, catastrophic risk, debt securities, insurance, special purpose company.