A Mutual Catastrophe Insurance Framework for Horizontal Collaboration in Prepositioning Strategic Reserves

Published Online:https://doi.org/10.1287/opre.2021.0141

References

  • African Risk Capacity (2020) How the African risk capacity works. Accessed September 26, 2020, https://www.africanriskcapacity.org/about/how-arc-works/.Google Scholar
  • Agarwal R, Ergun Ö (2010) Network design and allocation mechanisms for carrier alliances in liner shipping. Oper. Res. 58(6):1726–1742.LinkGoogle Scholar
  • Balcik B, Ak D (2014) Supplier selection for framework agreements in humanitarian relief. Production Oper. Management 23(6):1028–1041.CrossrefGoogle Scholar
  • Balcik B, Beamon BM (2008) Facility location in humanitarian relief. Internat. J. Logist. Res. Appl. 11(2):101–121.CrossrefGoogle Scholar
  • Balcik B, Silvestri S, Rancourt MÈ, Laporte G (2019) Collaborative prepositioning network design for regional disaster response. Production Oper. Management 28(10):2431–2455.CrossrefGoogle Scholar
  • Balcik B, Beamon BM, Krejci CC, Muramatsu KM, Ramirez M (2010) Coordination in humanitarian relief chains: Practices, challenges and opportunities. Internat. J. Production Econom. 126(1):22–34.CrossrefGoogle Scholar
  • Basso F, D’Amours S, Rönnqvist M, Weintraub A (2019) A survey on obstacles and difficulties of practical implementation of horizontal collaboration in logistics. Internat. Trans. Oper. Res. 26(3):775–793.CrossrefGoogle Scholar
  • Bimpikis K, Fearing D, Tahbaz-Salehi A (2018) Multisourcing and miscoordination in supply chain networks. Oper. Res. 66(4):1023–1039.LinkGoogle Scholar
  • Birge JR, Louveaux FV (2011) Introduction to Stochastic Programming (Springer, New York).CrossrefGoogle Scholar
  • Boonen TJ, De Waegenaere A, Norde H (2020) A generalization of the Aumann-Shapley value for risk capital allocation problems. Eur. J. Oper. Res. 282(1):277–287.CrossrefGoogle Scholar
  • Brettler D, Gosnear T (2020) Parametric insurance fills gaps where traditional insurance falls short. Insurance J. (January 9), https://www.insurancejournal.com/news/international/2020/01/09/553850.htm.Google Scholar
  • Bühlmann H (1985) Premium calculation from top down. Astin Bull. 15(2):89–101.CrossrefGoogle Scholar
  • Campbell AM, Jones PC (2011) Prepositioning supplies in preparation for disasters. Eur. J. Oper. Res. 209(2):156–165.CrossrefGoogle Scholar
  • CCRIF SPC (2019) CCRIF SPC Annual Report 2018-19 (CCRIF SPC, Grand Cayman, Cayman Islands).Google Scholar
  • Coskun A, Elmaghraby W, Karaman MM, Salman FS (2019) Relief aid stocking decisions under bilateral agency cooperation. Socio-Econom. Planning Sci. 67:147–165.CrossrefGoogle Scholar
  • Cruijssen F, Cools M, Dullaert W (2007) Horizontal cooperation in logistics: Opportunities and impediments. Transportation Res. Part E Logist. Transportation Rev. 43(2):129–142.CrossrefGoogle Scholar
  • Cummins J, Mahul O (2004) The demand for insurance with an upper limit on coverage. J. Risk Insurance 71(2):253–264.CrossrefGoogle Scholar
  • Dalal J, Üster H (2018) Combining worst case and average case considerations in an integrated emergency response network design problem. Transportation Sci. 52(1):171–188.LinkGoogle Scholar
  • Davis LB, Samanlioglu F, Qu X, Root S (2013) Inventory planning and coordination in disaster relief efforts. Internat. J. Production Econom. 141(2):561–573.CrossrefGoogle Scholar
  • Deelstra G, Plantin G (2014) Risk Theory and Reinsurance (Springer-Verlag, London).CrossrefGoogle Scholar
  • Doherty NA, Dionne G (1993) Insurance with undiversifiable risk: Contract structure and organizational form of insurance firms. J. Risk Uncertainty 6(2):187–203.CrossrefGoogle Scholar
  • Dong L, Tomlin B (2012) Managing disruption risk: The interplay between operations and insurance. Management Sci. 58(10):1898–1915.LinkGoogle Scholar
  • Dong L, Tang SY, Tomlin B (2018) Production chain disruptions: Inventory, preparedness, and insurance. Production Oper. Management 27(7):1251–1270.CrossrefGoogle Scholar
  • Duran S, Gutierrez MA, Keskinocak P (2011) Pre-positioning of emergency items for CARE International. INFORMS J. Appl. Anal. 41(3):223–237.LinkGoogle Scholar
  • Gerstein DM (2020) The strategic national stockpile and COVID-19: Rethinking the stockpile. Technical Report CT-A530-1, RAND Corporation, Santa Monica, CA.Google Scholar
  • Grass E, Fischer K (2016) Two-stage stochastic programming in disaster management: A literature survey. Surveys Oper. Res. Management Sci. 21(2):85–100.CrossrefGoogle Scholar
  • Guajardo M, Rönnqvist M (2015) Operations research models for coalition structure in collaborative logistics. Eur. J. Oper. Res. 240(1):147–159.CrossrefGoogle Scholar
  • Guajardo M, Rönnqvist M (2016) A review on cost allocation methods in collaborative transportation. Internat. Trans. Oper. Res. 23(3):371–392.CrossrefGoogle Scholar
  • Hillier B (1997) The Economics of Asymmetric Information (Palgrave Macmillan, London).CrossrefGoogle Scholar
  • Jaffee DM, Russell T (1997) Catastrophe insurance, capital markets, and uninsurable risks. J. Risk Insurance 64(2):205–230.CrossrefGoogle Scholar
  • Jahre M, Jensen LM (2010) Coordination in humanitarian logistics through clusters. Internat. J. Phys. Distribution Logist. Management 40(8/9):657–674.CrossrefGoogle Scholar
  • Jahre M, Pazirandeh A, Van Wassenhove L (2016) Defining logistics preparedness: A framework and research agenda. J. Humanitarian Logist. Supply Chain Management 6(3):372–398.CrossrefGoogle Scholar
  • Karsten F, Slikker M, van Houtum GJ (2015) Resource pooling and cost allocation among independent service providers. Oper. Res. 63(2):476–488.LinkGoogle Scholar
  • Kleffner AE, Doherty NA (1996) Costly risk bearing and the supply of catastrophic insurance. J. Risk Insurance 63(4):657–671.CrossrefGoogle Scholar
  • Kleindorfer PR, Klein RW (2003) Regulation and markets for catastrophe insurance. Sertel MR, Koray S, eds. Advances in Economic Design (Springer, Berlin), 263–279.CrossrefGoogle Scholar
  • Kleindorfer PR, Saad GH (2005) Managing disruption risks in supply chains. Production Oper. Management 14(1):53–68.CrossrefGoogle Scholar
  • Kousky C (2019) The role of natural disaster insurance in recovery and risk reduction. Annual Rev. Resource Econom. 11(1):399–418.CrossrefGoogle Scholar
  • Kousky C, Cooke R (2012) Explaining the failure to insure catastrophic risks. Geneva Papers Risk Insurance Issues Practice 37(2):206–227.CrossrefGoogle Scholar
  • Kunreuther H, Michel-Kerjan E (2013) Managing catastrophic risks through redesigned insurance: Challenges and opportunities. Dionne G, ed. Handbook of Insurance (Springer, New York), 517–546.CrossrefGoogle Scholar
  • Lodree EJ, Taskin S (2008) An insurance risk management framework for disaster relief and supply chain disruption inventory planning. J. Oper. Res. Soc. 59(5):674–684.CrossrefGoogle Scholar
  • Marshall JM (1974) Insurance theory: Reserves vs. mutuality. Econom. Inquiry 12(4):476–492.CrossrefGoogle Scholar
  • Moshtari M, Altay N, Heikkilä J, Gonçalves P (2021) Procurement in humanitarian organizations: Body of knowledge and practitioner’s challenges. Internat. J. Production Econom. 233:108017.CrossrefGoogle Scholar
  • Muggy L, Heier Stamm JL (2014) Game theory applications in humanitarian operations: A review. J. Humanitarian Logist. Supply Chain Management 4(1):4–23.CrossrefGoogle Scholar
  • Nagurney A, Flores EA, Soylu C (2016) A generalized Nash equilibrium network model for post-disaster humanitarian relief. Transportation Res. Part E Logist. Transportation Rev. 95:1–18.CrossrefGoogle Scholar
  • Qin X, Shao L, Jiang ZZ (2020) Contract design for equipment after-sales service with business interruption insurance. Eur. J. Oper. Res. 284(1):176–187.CrossrefGoogle Scholar
  • Rawls CG, Turnquist MA (2010) Pre-positioning of emergency supplies for disaster response. Transportation Res. Part B Methodological 44(4):521–534.CrossrefGoogle Scholar
  • Rockafellar RT, Wets RJB (1991) Scenarios and policy aggregation in optimization under uncertainty. Math. Oper. Res. 16(1):119–147.LinkGoogle Scholar
  • Rodríguez-Espíndola O, Albores P, Brewster C (2018) Disaster preparedness in humanitarian logistics: A collaborative approach for resource management in floods. Eur. J. Oper. Res. 264(3):978–993.CrossrefGoogle Scholar
  • Rodríguez-Pereira J, Balcik B, Rancourt MÈ, Laporte G (2021) A cost-sharing mechanism for multi-country partnerships in disaster preparedness. Production Oper. Management 30(12):4541–4565.CrossrefGoogle Scholar
  • Rubinstein RY, Kroese DP (2016) Simulation and the Monte Carlo Method (Wiley, Hoboken, NJ).CrossrefGoogle Scholar
  • Sabbaghtorkan M, Batta R, He Q (2020) Prepositioning of assets and supplies in disaster operations management: Review and research gap identification. Eur. J. Oper. Res. 284(1):1–19.CrossrefGoogle Scholar
  • Schmidli H (2017) Risk Theory (Springer International Publishing, Cham, Switzerland).CrossrefGoogle Scholar
  • Serpa JC, Krishnan H (2017) The strategic role of business insurance. Management Sci. 63(2):384–404.LinkGoogle Scholar
  • Snyder LV, Atan Z, Peng P, Rong Y, Schmitt AJ, Sinsoysal B (2016) OR/MS models for supply chain disruptions: A review. IIE Trans. 48(2):89–109.CrossrefGoogle Scholar
  • Sommer DW (1996) The impact of firm risk on property-liability insurance prices. J. Risk Insurance 63(3):501–514.CrossrefGoogle Scholar
  • Stephenson M Jr (2005) Making humanitarian relief networks more effective: Operational coordination, trust and sense making. Disasters 29(4):337–350.CrossrefGoogle Scholar
  • Stumpf J, Guerrero-Garcia S, Lamarche J, Besiou M, Rafter S (2017) Supply chain expenditure & preparedness investment opportunities in the humanitarian context. Technical report, Action Contre la Faim – ACF France, Paris.Google Scholar
  • Tofighi S, Torabi S, Mansouri S (2016) Humanitarian logistics network design under mixed uncertainty. Eur. J. Oper. Res. 250(1):239–250.CrossrefGoogle Scholar
  • Toyasaki F, Arikan E, Silbermayr L, Falagara Sigala I (2017) Disaster relief inventory management: Horizontal cooperation between humanitarian organizations. Production Oper. Management 26(6):1221–1237.CrossrefGoogle Scholar
  • UNDRR (2020) Sendai framework for disaster risk reduction 2015–2030. UN Office for Disaster Risk Reduction. Accessed February 15, 2021, https://www.undrr.org/implementing-sendai-framework/what-sendai-framework.Google Scholar
  • Verweij B, Ahmed S, Kleywegt AJ, Nemhauser G, Shapiro A (2003) The sample average approximation method applied to stochastic routing problems: A computational study. Comput. Optim. Appl. 24(2):289–333.CrossrefGoogle Scholar
  • Wang H, Tan J, Guo S, Wang S (2018) High-value transportation disruption risk management: Shipment insurance with declared value. Transportation Res. Part E Transportation Rev. 109:293–310.CrossrefGoogle Scholar
  • Zanjani G (2002) Pricing and capital allocation in catastrophe insurance. J. Financial Econom. 65(2):283–305.CrossrefGoogle Scholar
  • Zeckhauser R (1995) Insurance and catastrophes. Geneva Papers Risk Insurance Theory 20(2):157–175.CrossrefGoogle Scholar
  • Zhen X, Li Y, Cai GG, Shi D (2016) Transportation disruption risk management: Business interruption insurance and backup transportation. Transportation Res. Part E Logist. Transportation Rev. 90:51–68.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.