S Options for Consideration ASEAN DRFI Forum Nov3

8/3/2019 S Options for Consideration ASEAN DRFI Forum Nov3

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ASEANDISASTERRISKFINANCING

&INSURANCEFORUM

ASEANDISASTERRISKFINANCING&INSURANCEFORUMSession3

ASEANCountries:OptionsforConsiderations

OlivierMahul

ProgramCoordinator,

Disaster

Risk

Financing

&

Insurance,

The

World

Bank

November8 10,2011

Jakarta,Indonesia


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Disclaimer

Thisreport

is

awork

in

progress

presented

for

further

collaborativedrafting.Theteamhasmadeeveryattemptto

,

interpretedwithdueconsiderationtoitslimitationsresulting

fromthe

fact

that

indirect

sources

have

been

used

where

primarysourceswerenotavai a e,an t att eco ective

knowledgeinthisareaislimited.

discussionwiththeASEANMemberStatesandotherparticipantsduringthisForum.


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Presentationbackground&structure

World

Bank

and

ASEAN

Secretariat

backgroundreportonthestateofdisasterrisk

financingandinsuranceinASEANCountries;

Optionsfor

consideration

from

First

Draft

report.


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Keyfindingsandchallenges

Limiteddata

and

tools

to

assess

the

economic

and

fiscal

impactofnaturaldisasters

ncomp e e sas err s nanc ngan nsurances ra eg esa

bothnationalandsubnationallevels

MostASEAN

countries

lack

adedicated

vehicle

to

secure

and

quicklydisbursefundspostdisasters

Privatecatastropheriskinsurancemarketsremainunder

eve ope LimitedregionalcooperationamongASEANCountrieson

disasterriskfinancin andinsurance butrecentl olitical

willingnesstosupportsuchcooperation)


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Levelofengagement

Strategies

and

instruments

to

increase

the

financial

and

fiscal

resilienceoftheASEANcountriesagainstnaturaldisasterscanbea liedatmulti lelevels:

National

Provincial

Munici al

Thesestrategiesarecomplements

Regionaldisasterriskfinancingandinsurancestrategiescan

e

eve ope

among: Countries

Provinces

Municipalities(e.g.,megacities)


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Levelofengagement

Strategies

and

instruments

to

increase

the

financial

and

fiscal

resilienceoftheASEANcountriesagainstnaturaldisasterscanbea liedatmulti lelevels:

National

Provincial

Munici al

Thesestrategiesarecomplements

Regionaldisasterriskfinancingandinsurancestrategiescan

e

eve ope

among: Countries

Provinces

Municipalities(e.g.,megacities)


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ecommen a on

Developriskinformationandmodelingsystemstoassess

Optionfor

consideration

ASEANcountriescoulddevelop

Examples

PacificRiskInformationSystem

aregionalriskinformation

platform

Georeferenced

exposure

riskassessmentandmodelingtoolsforenhancedDRM

Exposuredatabaseofmorethan3millionsassetsatrisk

a a ase

Inventoryofpublicassets

Regionalcatastropheriskmodels

Fiscal risk assessment tools to be

Historicalandsimulatedcataloguesofmajorperils

Informationavailableonawebserver

RiskinaBox

usedby

MoFs to

assess

the

fiscal

impactofnaturaldisasters(aspart

oftheiroverallfiscalrisk

assessmentanal sis

Prototype

eve ope

inIn onesia

MexicosRFONDEN

Financialmodulecoupledwithacatastropheriskmodeltoassesstheeconomicandfiscalimpactofnaturaldisasters


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ecommen a on

Developdisasterriskfinancingandinsurancestrategies

Optionsfor

consideration

DevelopathreetieredriskExamples Contingent credit

thevolatilityofthebudgetagainstnaturaldisasters

Developnationalinsurance

n e pp nes

Mexicomultilayerriskfinancingstrategy

Annualallocation

programsofpublicassets Inventoryofpublicbuildingsand

infrastructure

Catbond

CostaRicacatastropherisktransfer

vehicleforpublicassets

assetsto

be

quickly

rehabilitated

afteradisaster

Designofacatastropheinsurancero ramof ublicassets


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Recommendation#3

Establishnationalandsubnationaldisasterfunds

Optionforconsideration

Establishnationaland orsub

Examples

MexicosNationalDisasterFund

nationaldisasterfunds

Mechanismforrapidfinancingof

postdisaster

operations

Emergencywindow

Programfor

rehabilitation

and

Securesfundexantethrough

retentionanrisktransfer

Conductstransparentandefficient

damageassessmentofpublic

Trust

assets Mobilizesimmediatefundingpost

disaster


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Recommendation#4

Promoteprivatecatastropheriskinsurancemarkets

Optionsforconsideration

Enablin re ulationfor

Examples

TurkishCatastropheinsurancePool

catastropheriskinsurance

Riskbasedsupervision

Develo in riskmarket

Poolingpropertycatastropherisksofprivatedwellings

Nationalagricultural

insurance

infrastructure

Productdesignandpricing

Underwritingandclaimshandling

Movingfrompublicpostdisasterassistancetomarketbasedcropinsurancethrough

Distributionchannels

Facilitatingdisasterriskpooling

Facilitatingthepoolingand

PPP

trans ero nationa isasterris s


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Recommendation#5

Strengthenregionalcooperationondisasterrisk

financing

and

insuranceOptionsforconsideration Examples

Regionaldisasterrisk

information,assessmentand

modelingsystems

CaribbeanCatastropheRisk

InsuranceFacility(CCRIF)

SoutheasternEurope

and

the

Regionalcapacitybuilding

programsandadvisoryservices

Regionalvehiclestoleverage

CaucasusCatastropheRisk

InsuranceFacility(SEECCRIF)

PacificDisasterRiskInsurance

internationalreinsurance

and

capitalmarketsProgram


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SummaryofoptionsforYOURconsideration

1. Developrisk

information

and

modeling

systems

to

assesstheeconomicandfiscalimpactofnatural

disasters

2. Developdisaster

risk

financing

and

insurance

strateg esatt enat ona an su nat ona eve s

3. Establishnationalandsubnationaldisasterfunds

4. Promoteprivate

catastrophe

risk

insurance

markets

5. Strengthenregionalcooperationondisasterrisk

nanc ngan nsurance

S Options for Consideration ASEAN DRFI Forum Nov3

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