Catastrophe Risk Financing Instruments. Abhas K. Jha Regional Coordinator, Disaster Risk Management East Asia and the Pacific
|
|
- Deborah Phillips
- 6 years ago
- Views:
Transcription
1 Catastrophe Risk Financing Instruments Abhas K. Jha Regional Coordinator, Disaster Risk Management East Asia and the Pacific
2 Structure of Presentation Impact of Disasters in developing Countries The Need for Catastrophe Risk Financing A Description of World Bank Instruments
3 Main Messages Disaster risks, Economic and Insured and Non-Insured Losses are increasing Governments cannot and should not fund ex-ante DRM and recovery costs alone. There are a number of innovative catastrophe risk financing instruments available that fund liquidity and risk transfer to the private sector.
4 Natural Events Becoming More Extreme
5 Economic and Insured Losses are Increasing [Source: Munich Re 2008] 5
6 Developing Countries Have an Insurance Gap Insured Uninsured Peril / Event Country Loss ($bn) Loss (% Loss) Loss % GDP % Govt. Revenues Earthquake - Izmit (1999) Turkey Hurricane - Mitch (1998) Honduras Floods - (1997) Poland Earthquake - Gujarat/Bhuj (2001) India Earthquake Northridge (1992) USA Winter Storm (1999) France
7 Catastrophe Insurance Premiums are High and Volatile World ROL Rate on Line Index Rate on Line = Insurance Premium divided by amount covered The ROL Index tracks the level of catastrophe insurance premiums =
8 Protecting the fiscal balance of the State from natural disasters Catastrophe Bonds Parametric Insurance Traditional insurance Contingent lines of credit Loans (Standard or Emergency) Budget reallocations Reserves/Calamity funds Probable Maximum Loss Transfer Retention
9 The Financial Protection of the State : Source of Financing Post-Disaster Availability Cost Instruments of funds (multiplier) Reserves Immediate 1-2 Budget reallocations Contingent lines of credit Immediate 1-2 Emergency loans 3-6 months 1-2 Donor contributions 3-6 months 0-1 Traditional insurance 3-6 months 3-6 Parametric insurance Immediate 2-5 Catastrophe Bonds Immediate 2-5 How do we combine these instruments to protect the fiscal balance of the state and improve its capacity to respond in case of a natural disaster?
10 Liquidity gaps often emerges in the early days after a disaster 50 Financial resources available minus expenditure needs Months after a disaster Need for an instrument to provide liquidity early on until other sources of funds can be accessed
11 DDO - Board Approved on March 4, 2008 Introduced a new instrument, the catastrophe DDO (CAT DDO) - Provide immediate liquidity during an emergency, while others forms of assistance are being mobilized Option Deferring the disbursement of a DPL until a catastrophe/natural disaster happens Eligibility IBRD and Blend countries with adequate macroeconomic policy framework Satisfactory implementation of a disaster risk management program Pricing Same as applied to IBRD loans (reformed)
12 CAT DDO: Applications and Value-added Countries should build up reserves to cover small scale Insurance and other risk transfer instruments are usually efficient for less frequent events What about in-between losses? - Politically difficult to build up reserves above expected losses Probability Severity Instrument - Financially too expensive to purchase insurance to cover frequent events The CAT DDO: - Offers a financial bridge between reserves and risk transfer instruments - Develops borrower s capacity to manage natural disaster risk - Offers a soft trigger (declaration of state of emergency) Low High High Low Insurance Linked Securities (e.g., CAT bonds) Insurance/ Reinsurance Contingent Loans Reserves Retention Risk Transfer - Complements parametric tools Source: Financial and Private Sector Development/ Financial Markets Networks (FPDSN),
13 CAT DDO: Terms and Product Structure Drawdown/ Fund Availability Terms Volume/ Optionality Repayment Terms Provides immediate liquidity after a natural disaster resulting in a declaration of state of emergency Macro framework reviewed at commitment and at renewal A disaster risk management program has to be implemented in accordance with Bank standards (client will be notified if non-compliant and funds will not be available for drawdown until back in compliance) Full loan amount is available for three years, renewable up to four times with RVP approval, for a total maximum drawdown period of 15 years Amounts repaid during the drawdown period will be available for subsequent drawdowns Maximum size of 0.25% of GDP or the equivalent of USD 500 million (exceptions possible for small countries on case-by-case basis) The client can choose among the same conversion options (interest rate, currency) that are available for IBRD loans Repayment terms can be determined at the time of commitment or drawdown Repayment schedule will commence from date of drawdown Each drawdown may have different repayment schedules Pricing Same as regular IBRD loans. No fee will be charged for extension of the drawdown 13
14 Comprehensive Approach to Comprehensive DRM Approach to DRM Disaster Risk Management A B C D Risk Identification and Evaluation Risk Reduction Risk Financing Disaster Preparedness & Response Data collection, hazard and vulnerability monitoring; Socioeconomic resiliency studies; Probabilistic risk modeling & mapping; Structural & non-structural mitigation; Institutional & regulatory measures: territorial planning, building codes, etc.; Territorial & sectoral planning. Risk retention (reserve funds, CAT-DDO, etc.); Risk transfer (insurance, ART, etc.); Appropriation and execution systems. Early warning systems; Institutional strengthening at local, national and regional levels : training & equipping; Simulation exercises. E Disaster Recovery Post disaster needs assessments; Rehabilitation & reconstruction plans; Restructuring of existing projects (with additional financing) & Emergency Recovery Loans;
15 Caribbean Catastrophe Risk Insurance Facility The Caribbean Catastrophe Risk Insurance Facility (CCRIF) was established in 2007 Preparatory studies for the establishment of the CCRIF included the development of hurricane and earthquake risk models to assess potential monetary impacts, the structuring of a risk financing strategy, and the legal and organizational design of an insurance vehicle to structure and pass excess risk to the international reinsurance and capital markets. CCRIF provides participating governments with coverage akin to a business interruption insurance.
16 The Caribbean Catastrophe Risk Insurance Facility A joint reserve mechanism that allows Caribbean Governments to access liquidity at short notice in case of a catastrophe: quick disbursing in case of a major earthquake or hurricane; transparent rules parametric instrument; without cross subsidization contribution are based on each island s specific risk; at the lowest possible cost leveraging the capacity of the financial markets.
17 Antigua Reinsurers Trinidad Jamaica CCRIF Reinsurance... World Bank Barbados Identical Disaster contingent payments Swap Counterparty Parametric insurance Cat Swaps
18 World Bank Support to TCIP Modeling and pricing of property risk Insurance policy design Developing TCIP policy distribution and accounting systems Underwriting, rating and operational guidelines Public relations campaign Training Investment policy and fund management Improving regulatory framework and enforcement of building codes
19 World Bank Support to TCIP Capital Support and Advisory Assistance to TCIP Risk capital ($180 mm contingent capital facility) Financing of reinsurance premium ($40 mm in premium costs - 2 nd year) Advisory assistance by Bank insurance staff (original design of program and ongoing modifications) World Bank s financial support to TCIP has been instrumental In making the program financially sound and affordable
20 Risk Financing Through Cat Bonds Catastrophe-linked-securities are risk financing instruments which allow buying insurance through the capital markets by raising funds from investors which are used to make payments against claims under the insurance contracts. Catastrophe Bonds (or cat bonds) are the most common type of catastrophe-linked-securities. Cat bonds are targeted to a very wide investor base (money managers, hedge funds, pension funds, and insurers and reinsurers). Insurance payouts are collateralized; hence investors face no credit risk. 20
21 The market for CAT bonds is growing The CAT bond market is 10 years old Capital markets have capacity to absorb natural disaster risks New investors continue to enter in catastrophe insurance markets in search of attractive yields and diversification Catastrophe bond market ,274 19,621 Market Growth $ (m) 1,304 1,304 1,776 1,096 2,010 1,161 2,322 1,125 2,703 1,014 3,316 1,260 4,662 1,990 4,855 1,306 7,232 1,993 4,751 5, and prior Katrina Outstanding Catastrophe Issuance Catastrophe Bond Issuance
22 Multi-Country Catastrophe Bond (MCCB) The multi-country cat bond is structured to: Allow member countries to pool risks across different perils, reducing the cost of insurance via diversification through capital markets and collateralized coverage Provide multi-year coverage at fixed rates, resulting in lower cost volatility and less "renewal" risk Enable rapid access to capital post event based on specific coverage triggers (parametric insurance) Eliminate any incremental leverage as funds do not need to be repaid 22
23 Multi-Country Cat Bond Structure and Cash Flows Disaster Contingent payments Countries MCCB Principal Re-insurers & Capital Market Investors Premiums Coupons Subsidies Coupons AAA Assets Donors Collateral Trust 23
24 Other Insurance Programs The World Bank Group offers a range of complementary products and services to assist countries develop tailor-made catastrophe risk financing strategies. Property Catastrophe Insurance Programs The World Bank Group assisted Turkey in establishing the Turkish Catastrophe Insurance Pool (TCIP), that offers efficiently priced earthquake insurance to homeowners. Agriculture Insurance Programs The World Bank Group has provided technical assistance for the development of innovative agriculture insurance programs in several low and middle-income countries. The Index-Based Livestock Insurance Program was established by the Government of Mongolia to protect herders against excessive livestock mortality. The Government of India, with the assistance from the World Bank, established a Weather Based Crop Insurance Scheme to protect farmers against drought. Specialist Index Reinsurer The World Bank Group is supporting the creation of the Global Index Reinsurance Facility (GIRIF), a multi-donor trust fund linked with a specialized index-based reinsurance company, which will promote index-based insurance in developing markets. Weather Derivatives The World Bank Group offers weather derivatives to provide risk management products to member countries, transferring the weather risk to the market. 24
25 Exposure to Weather Risk Low and middle-income countries bear weather risks that can have a large impact on their GDP and their budget: Direct economic loss (e.g. damage to stock of housing) Production shocks (e.g. damage to agricultural production) Hedging products can help manage weather risks in the context of a wider risk management framework. 25
26 The Weather Market First weather derivative transaction in U.S Deregulation of the energy industry Market has rapidly grown, well over $100b transacted to date (PWC Survey 2008) Non-energy applications New participants Global development Broader product offering Key Players: (Re)insurers Banks Hedge Funds Market wants to diversify and grow their portfolios, wants new risks
27 Weather Market Gap and World Bank s Role Market Concentration The majority of weather derivative transactions tend to be for developed markets - the US in particular High Investment Derivative transactions capacity building High cost of initial due diligence Moral Hazard Concerns about possible manipulation of weather data The WB can intermediate index-based weather derivatives for its clients (droughts, floods, high temperature). These mechanisms should be considered as one of a menu of instruments that could be used to implement a disaster risk management strategy
28 Value-Added of WB Intermediation Building Capacity Attracting Market Players Mitigating Moral Hazard Risk Pricing
29 Prerequisites for a Program in Malawi An index that captures national drought risk in Malawi faithfully Government s Maize Yield Assessment Model Rainfall-based FAO model used since 1992 High quality historical weather data and reliable real-time communication Malawi Met Office data excellent: 23 stations with over 40 years, few gaps Can provide real-time data required by market $200k invested by DFID Jan 2008 to support a pilot transaction Premium: DFID want to support initial premium cost in piloting phase starting 2008 EU and USAID interested for 2009+
30 Historical Payouts Example 95% Strike, $500k per % Payout Value of Contract to Market = Average Payout + Risk Margin Value of Contract to Government = Average Payout + Value of Timely, Reliable Funds
31 World Bank Intermediation: Value Added Building Capacity Building capacity to facilitate future direct transactions between the Government and market counterparts Legal Transaction structuring. E.g. choice of the coverage level Bidding process, execution, valuation, accounting Attracting Market Players Reduces start-up costs for private sector market players in Malawi Facilitates competition by organizing bidding process among market counterparts Mitigating Moral Hazard Concerns Market participants are concerned about possible manipulation of weather data as the data provider (Met-Office) is a Government agency. The World Bank involvement eases these concerns Pricing As risk and start-up cost is reduced for the counterparts, and the Bank facilitates competition, the pricing might benefit from World Bank intermediation
32 Thank You!
Loss and Damage Associated with Climate Change Impacts The (possible) role of Disaster Risk Financing and Insurance
UNFCC regional expert meeting on loss and damage August 27 29, 2012 Bangkok, Thailand Loss and Damage Associated with Climate Change Impacts The (possible) role of Disaster Risk Financing and Insurance
More informationAn Overview of Disaster Risk Financing Instruments in the World Bank Operations
GFDRR sponsored BBL, Washington DC An Overview of Disaster Risk Financing Instruments in the World Bank Operations Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist March 4, 2009 Contents Disaster
More informationDisaster Management The
Disaster Management The UKRAINIAN Agricultural AGRICULTURAL Dimension WEATHER Global Facility for RISK Disaster MANAGEMENT Recovery and Reduction Seminar Series February 20, 2007 WORLD BANK COMMODITY RISK
More informationCARIBBEAN AND CENTRAL AMERICAN PARTNERSHIP FOR CATASTROPHE RISK INSURANCE POOLING RISK TO SAFEGUARD AGAINST CATASTROPHES GENERATED BY NATURAL EVENTS
CARIBBEAN AND CENTRAL AMERICAN PARTNERSHIP FOR CATASTROPHE RISK INSURANCE POOLING RISK TO SAFEGUARD AGAINST CATASTROPHES GENERATED BY NATURAL EVENTS May 2014 NINE COUNTRIES IN THE CARIBBEAN AND CENTRAL
More informationFinancing Options and Issues Session 6: Access to Financing Options and Instruments
IMF Workshop on Building Resilience to Natural Disasters and Climate Change DISASTER RISK FINANCING AND INSURANCE PROGRAM (DRFIP) April 4-6 2017 Financing Options and Issues Session 6: Access to Financing
More informationInformation Sharing Event on Work Program for Loss and Damage
Information Sharing Event on Work Program for Loss and Damage Contribution from the World Bank Kanta Kumari Rigaud Lead Adaptation & PPCR Coordinator World Bank June 7, 2011 Bonn World Bank Approach to
More informationFatou Assah. The World Bank. April 2012
Fatou Assah Senior Financial Sector specialist The World Bank April 2012 1 Contents 2 Disaster Risk Management Framework Disaster Risk Financing & Insurance Program Mainstream disaster risk financing and
More informationTERMINOLOGY. What is Climate risk insurance? What is Disaster risk insurance?
TERMINOLOGY What is Climate risk insurance? Climate risk insurance describes a suite of instruments for financial risk transfer that provides protection against risks arising from extreme weather events
More informationIntegrated Risk Management Strategies: Example of Malawi Food Security Strategy
Integrated Risk Management Strategies: Example of Malawi Food Security Strategy Ekaterina Gratcheva Lead Financial Officer Banking and Debt Management World Bank Treasury egratcheva@worldbank.org From
More informationAn Operational Framework for Disaster Risk Financing and Insurance
Financial Protection Against Natural Disasters An Operational Framework for Disaster Risk Financing and Insurance This part seeks to tie together the experience and collected knowledge from partners in
More informationREPUBLIC OF KENYA THE NATIONAL TREASURY AND MINISTRY OF PLANNING
REPUBLIC OF KENYA THE NATIONAL TREASURY AND MINISTRY OF PLANNING DISASTER RISK FINANCIAL INSTRUMENTS IN KENYA EXECUTIVE SEMINAR ON INDEX BASED LIVESTOCK INSURANCE SAROVA WHITESANDS HOTEL 19 TH -20 TH APRIL,
More informationPUBLIC CREDIT OFFICE MANAGING LIQUIDITY RISK THROUGH CONTINGENT LINES OF CREDIT
COSTA RICA: MANAGING LIQUIDITY RISK THROUGH CONTINGENT LINES OF CREDIT Juan Carlos Pacheco Director of Public Credit Department Ministry of Finance PUBLIC CREDIT OFFICE 2 Costa Rica & World Bank: A Partnership
More informationAON Re Hazards Conference
AON Re Hazards Conference The World Bank and Public Private Partnerships for Hazard Risk Management in EAP Rodney Lester World Bank August 22, 2005 World Bank clients are disproportionately affected by
More informationDisaster Risk Management in the Caribbean Case Study: Rapid Damage and Loss Assessment following the 2013 Disaster
Belize benefits from knowledge and experiences from the PPCR Disaster Risk Management in the Caribbean Case Study: Rapid Damage and Loss Assessment following the 2013 Disaster Photo Credit: http://gov.vc
More informationDISASTER RISK FINANCING ADB Operational Innovations in South Asia
DISASTER RISK FINANCING ADB Operational Innovations in South Asia Erik Kjaergaard, Disaster Risk Management Specialist South Asia Department with input from Mayumi Ozaki, Senior Portfolio Management Specialist
More informationBoosting Financial Resilience to Disaster Shocks
Boosting Financial Resilience to Disaster Shocks Good Practices and New Frontiers World Bank Technical Contribution to the 2019 G20 Finance Ministers and Central Bank Governors Process January 16, 2019.
More informationDraft 04/07/2006 p.1 of 6 CRMG. 1
Global Index Insurance Facility (GIIF) Concept Note (Synopsis) Commodity Risk Management Group (CRMG) 1, ARD, World Bank Proposal It is intended to establish a new reinsurance vehicle, the Global Index
More informationFinancial Protection of the State against Natural Disasters. Summary. Introduction
Financial Protection of the State against Natural Disasters Francis Ghesquiere, Lead Disaster Risk Management Specialist, World Bank Olivier Mahul, Program Coordinator, Insurance for the Poor & Disaster
More informationPUBLIC DISCLOSURE AUTHORISED
PUBLIC DISCLOSURE AUTHORISED CARIBBEAN DEVELOPMENT BANK SUPPORT FOR HAITI TO MEET COMMITMENT TO CARIBBEAN CATASTROPHE RISK INSURANCE FACILITY FOR THE 2013-2014 HURRICANE SEASON This Document is being made
More informationDisaster Risk. Management. Niels Holm-Nielsen. Lead Specialist Disaster Risk Management
Disaster Risk Management Niels Holm-Nielsen Lead Specialist Disaster Risk Management 1 Who Cares? 1 tropical storm was the likely cause of 20% of the increase in poverty in Guatemala between 2006 and 2011
More informationTerms of Reference. 1. Background
Terms of Reference Peer Review of the Actuarial Soundness of CCRIF SPC s Loss Assessment Models for Central America and the Caribbean (i) Earthquake and Tropical Cyclone Loss Assessment Model (SPHERA)
More informationKey Messages. Dealing with Natural Disaster Risks Institutions & Products
Workshop on Insurance and Risk Assessment Key Messages Dealing with Natural Disaster Risks Institutions & Products Vijay Kalavakonda Insurance Specialist email: vkalavak@worldbank.org World Bank Insurance
More informationAndrew Goodland RISK MANAGEMENT: THE CASE OF THE LIVESTOCK SECTOR IN MONGOLIA
Andrew Goodland RISK MANAGEMENT: THE CASE OF THE LIVESTOCK SECTOR IN MONGOLIA Outline 1. Brief context nature of risk in Mongolia 2. Conceptual framework for understanding and addressing risk in the agricultural
More informationResilience and the Economics of Risk. NACo s Resilient Counties Advisory Board February 2016
Resilience and the Economics of Risk NACo s Resilient Counties Advisory Board February 2016 The growing burden of uninsured losses Natural catastrophe losses 1970 2014 (in 2014 USD) 450 400 350 300 Uninsured
More informationKnowledge FOr Resilient
Date: 14 December 2017 Place: Novi Sad Knowledge FOr Resilient society FINANCIAL RESILIENCE TO HAZARDS AND CLIMATE FINANCE: A COMPREHENSIVE APPROACH OF TOOLS AND METHODS FOR DISASTER RISK FINANCE Outline
More informationLooking for Comprehensive Risk Management Solutions for the OECS countries: The World Bank Group Perspective
Risk Management and Investment in the Caribbean Looking for Comprehensive Risk Management Solutions for the OECS countries: The World Bank Group Perspective Eugene N. Gurenko Senior Insurance Specialist
More informationSmall States Catastrophe Risk Insurance Facility
Small 2005 States Forum 2005 Annual Meetings World Bank Group/International Monetary Fund Washington, DC DRAFT September 24, 2005 www.worldbank.org/smallstates Small States Catastrophe Risk Insurance Facility
More informationA Client Focused Approach. SDM Forum October 2010
IBRD Financial Solutions A Client Focused Approach to Achieving Ahi i Debt DbtManagement tgoals SDM Forum October 2010 Main Messages Clients face a range of risks and challenges in putting together financing
More informationClosing the Protection Gap Issues and Initiatives
Issues and Initiatives Be mindful of the future despite the blissful ignorance of the present. Today is the good old times of tomorrow. Karl Valentin (German actor, writer and comedian, 1882-1948) 2 The
More informationStability and Capacity of Property Liability Insurance Markets. Neil Doherty Cartagena, Colombia May 2007
Stability and Capacity of Property Liability Insurance Markets Neil Doherty Cartagena, Colombia May 2007 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 Market Stability: Combined Ratio in Colombia Life P&C 1975 1976
More informationAgricultural Insurance for Developing Countries The Role of Governments
FARM - Pluriagri conference on Insuring Agricultural Production Paris, France December 18, 2012 Agricultural Insurance for Developing Countries The Role of Governments Olivier Mahul Program Coordinator,
More informationCARIBBEAN DEVELOPMENT BANK SUPPORT FOR HAITI TO MEET COMMITMENT TO CARIBBEAN CATASTROPHE RISK INSURANCE FACILITY FOR THE HURRICANE SEASON
PUBLIC DISCLOSURE AUTHORISED CARIBBEAN DEVELOPMENT BANK SUPPORT FOR HAITI TO MEET COMMITMENT TO CARIBBEAN CATASTROPHE RISK INSURANCE FACILITY FOR THE 2017-2018 HURRICANE SEASON This Document is being made
More informationDEFINING THE PROTECTION GAP. 1: Decide who /what should be protected:
DEFINING THE PROTECTION GAP Introduction In recent years, we ve seen a considerable increase in disasters, both in their frequency and severity. Overall economic losses from such disasters currently average
More informationThe Caribbean Catastrophe Risk
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized 44695 Operational Innovations In Latin America and the Caribbean The Caribbean Catastrophe
More informationPublic Private Partnerships for Agricultural Insurance
Roundtable on the Development of Agriculture Insurance Methodology in Tanzania JUN 23 2016 Public Private Partnerships for Agricultural Insurance Chloe Dugger, Operations Officer World Bank Group Contents
More informationSECTOR ASSESSMENT (SUMMARY): FINANCE (DISASTER RISK MANAGEMENT) 1. Sector Performance, Problems, and Opportunities
National Disaster Risk Management Fund (RRP PAK 50316) SECTOR ASSESSMENT (SUMMARY): FINANCE (DISASTER RISK MANAGEMENT) A. Sector Road Map 1. Sector Performance, Problems, and Opportunities a. Performance
More informationDeveloping Catastrophe and Weather Risk Markets in Southeast Europe: From Concept to Reality
Developing Catastrophe and Weather Risk Markets in Southeast Europe: From Concept to Reality First Regional Europa Re Insurance Conference October 2011 Aleksandra Nakeva Ruzin, MPPM Executive Director
More informationCatastrophe Risks and their Financing in India including Regulatory Landscape
Catastrophe Risks and their Financing in India including Regulatory Landscape -YogeshLohiya Natural Catastrophe Exposure in India India is vulnerable to natural disasters & prone to Earthquakes, Floods,
More informationGlobal Facility for Disaster Reduction and Recovery. of the Hyogo Framework for Action. Kobe, January 15, 2007
Global Facility for Disaster Reduction and Recovery New Initiative to Enable / Accelerate the Implementation of the Hyogo Framework for Action Kobe, January 15, 2007 Maryvonne Plessis-Fraissard Senior
More informationSISRI Knowledge Notes. The Small Island States Resilience Initiative (SISRI) OVERVIEW NOTE: #1 FOCUS: PROGRAM OVERVIEW OVERVIEW: NOTE: #1
SISRI Knowledge Notes A series highlighting good practices in climate and disaster resilience in Small Island States The Small Island States Resilience Initiative (SISRI) Tom Perry/World Bank NOTE: #1
More informationGuidance Note to Staff
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized GUIDANCE NOTE 1. The Operational Policy/Bank Procedure OP/BP 8.00 Rapid Response to Crises
More informationDOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING HONDURAS AND NICARAGUA CATASTROPHE RISK INSURANCE PROJECT
Public Disclosure Authorized The World Bank DOCUMENT OF THE WORLD BANK REPORT NO.: RES24760 Public Disclosure Authorized Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING
More informationNATIONAL DISASTER RISK MANAGEMENT FUND (NDRMF) PAKISTAN
NATIONAL DISASTER RISK MANAGEMENT FUND (NDRMF) PAKISTAN Lt Gen Nadeem Ahmad (R) CEO NDRMF Pakistan Asian Regional Forum on Disaster Risk Finance (Sep 25-26, 2018) ADB Headquarters, Manilla, Philippines
More informationBackground Paper. Market Risk Transfer. Phillippe R. D. Anderson The World Bank
Background Paper Market Risk Transfer Phillippe R. D. Anderson The World Bank Market Risk Transfer Background Paper for the World Development Report 2014 on Opportunity and Risk: Managing Risk for Development
More informationEx Ante Financing for Disaster Risk Management and Adaptation
Ex Ante Financing for Disaster Risk Management and Adaptation A Public Policy Perspective Dr. Jerry Skees H.B. Price Professor, University of Kentucky, and President, GlobalAgRisk, Inc. Piura, Peru November
More informationINDEX BASED RISK TRANSFER AND INSURANCE MECHANISMS FOR ADAPTATION. Abedalrazq Khalil, PhD Water Resources Specialist, World Bank
INDEX BASED RISK TRANSFER AND INSURANCE MECHANISMS FOR ADAPTATION Abedalrazq Khalil, PhD Water Resources Specialist, World Bank Outline Introduction: Climate Change and Extremes Index Based Risk Transfer:
More informationDeveloping a Disaster Insurance Framework for Pakistan
Developing a Disaster Insurance Framework for Pakistan Fund Design Options RECURRING NATURAL HAZARDS ERODE RESILIENCE A NATIONAL DISASTER INSURANCE FUND TO SUPPORT VULNERABLE LOW-INCOME PEOPLE The people
More informationWe have shown that there is a wide gap between present
8 An Agenda Going Forward We have shown that there is a wide gap between present actions and the potential of multilateral development banks to support their clients risk-management policies, although
More informationFINANCIAL RISK TRANSFER MECHANISMS OVERVIEW
Second Meeting of the Regional Platform for Financial Risk Transfer Mechanisms Mauritius, 26 th September 2012 FINANCIAL RISK TRANSFER MECHANISMS OVERVIEW â Luc Malâtre, Consultant to the COI FINANCIAL
More informationFinancial Solutions for Risk Management. Sovereign Debt Management Forum Washington DC October 20, 2016
Financial Solutions for Risk Management Sovereign Debt Management Forum Washington DC October 20, 2016 Uninsured losses from natural catastrophes are a growing burden for governments Natural catastrophe
More informationRisk Transfer Schemes the Example of CCRIF SPC
Risk Transfer Schemes the Example of CCRIF SPC Isaac Anthony Chief Executive Officer CCRIF SPC Fourth Forum of the Standing Committee on Finance Financial instruments that address the risks of loss and
More informationInsurance as a Risk Reduction Tool: Role of Parametric and Traditional Insurance
Insurance as a Risk Reduction Tool: Role of Parametric and Traditional Insurance Saundra Bailey Group Managing Director Caribbean Emergency Legislation Project (CELP) 25 March 2010 The Caribbean context
More informationInsurance Industry solutions for disaster risk financing. 22 th October 2013 Michael Spranger
Insurance Industry solutions for disaster risk financing 22 th October 2013 Michael Spranger A reminder - Asian EQ hazard Aon Benfield APAC Proprietary & Confidential 1 Seismicity and EQ hazard map Philippines
More informationAgricultural Risk Management in the Caribbean
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Table of Contents Agricultural Risk Management in the Caribbean Lessons and Experiences
More informationTerms of Reference Technical Expert for CCRIF SPC Central America SP
Terms of Reference Technical Expert for CCRIF SPC Central America SP 1. Background In 2007, the Caribbean Catastrophe Risk Insurance Facility was formed as the first multi-country risk pool in the world,
More informationThe Lessons of 2017 Perspective from the World Bank Group
The Lessons of 2017 Perspective from the World Bank Group Barbuda Dominica Hurricane Irma Hurricane Maria Rebuild, Rethink, Resilience: Lessons for economic and security partnerships following after the
More informationEnhance Financial Resilience Against Disasters
2016/FMM/010 Session 3 Enhance Financial Resilience Against Disasters Purpose: Information Submitted by: World Bank Group 23 rd Finance Ministers Meeting Lima, Peru 14-15 October 2016 APEC Meeting, Lima,
More informationGOVERNMENTS IN THE LEAD ON FINANCIAL PREPAREDNESS
GOVERNMENTS IN THE LEAD ON FINANCIAL PREPAREDNESS Lessons learned from around the world Wednesday, November 18, 2015 African Union Addis Ababa, Ethiopia GOVERNMENTS IN THE LEAD ON FINANCIAL PREPAREDNESS
More informationNAT-CAT RISK MANAGEMENT. Thomas Mahl, RID 1.3
NAT-CAT RISK MANAGEMENT Thomas Mahl, RID 1.3 Global Loss Trend and its Drivers The last 30 years have seen a significant increase in losses caused by natural disasters Natural catastrophes in Asia 1980
More informationPacific Catastrophe Risk Pool Initiative Concept Presentation
Pacific Catastrophe Risk Pool Initiative Concept Presentation Nigel Roberts Country Director, Pacific Islands, PNG and Timor Leste Small States Forum Washington DC, October 21, 2007 In the aftermath of
More informationClimate Change and Natural Disasters in Small Island Developing States
Climate Change and Natural Disasters in Small Island Developing States Sofia Bettencourt Rolande Simone Pryce Habiba Gitay Lead Adaptation Specialist Sr. Operations Officer Sr. Environmental Specialist
More informationOVERVIEW. Linking disaster risk reduction and climate change adaptation. Disaster reduction - trends Trends in economic impact of disasters
Linking disaster risk reduction and climate change adaptation Inter-Agency Secretariat for the International Strategy for Disaster Reduction (UNISDR) A. Trends OVERVIEW B. Disaster reduction a tool for
More informationWeathering Climate Change through Climate Risk Transfer Solutions
The G20's role on climate risk insurance & pooling: Weathering Climate Change through Climate Risk Transfer Solutions With this document, the Munich Climate Insurance Initiative (MCII) provides suggestions
More informationSOVEREIGN CATASTROPHE RISK POOLS A Brief for Policy Makers 1
SOVEREIGN CATASTROPHE RISK POOLS A Brief for Policy Makers 1 More than 1 billion people have lifted themselves out of poverty in the past 15 years, but climate and disaster risks threaten these achievements.
More informationDISASTER RISK INSURANCE FOR SMES AND AGRICULTURE
DISASTER RISK INSURANCE FOR SMES AND AGRICULTURE Vijayasekar Kalavakonda Senior Financial Sector Specialist Finance & Markets Global Practice The World Bank Group Asia-Pacific is the world s most disaster
More informationCaribbean and Central American Partnership for Catastrophe Risk Insurance
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Caribbean and Central American Partnership for Catastrophe Risk Insurance Pooling Risk
More informationHurricane Andrew (1992) Photo credit: FEMA
Hurricane Andrew (1992) Photo credit: FEMA 20% 18% 17.75% Florida Citizens CAT Bonds Attachment (Default) Probability Coupon 16% 14% 12% 10% 10.00% 8% 7.50% 6% 4% 2.71% 2.91% 2.89% 2% 0% Series 2012 Series
More informationI n v i r t i e n d o p a r a l a R e s i l i e n c i a. I n v i r t i e n d o p a r a l a R e s i l i e n c i a
I n v i r t i e n d o p a r a l a R e s i l i e n c i a Disaster Risk Financing: I n v i r t i e n d o p a r a l a R e s i l i e n c i a The Evolving Role of (Re)Insurance and Financial Markets Claudia
More informationPROGRAM INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: Second Disaster Risk Management Development Policy Loan with a CAT-DDO Region
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized PROGRAM INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: Operation Name Second Disaster
More informationSponsored by the Government of Japan
Sponsored by the Government of Japan GLOBAL SEMINAR ON DISASTER RISK FINANCING: TOWARDS THE DEVELOPMENT OF EFFECTIVE APPROACHES TO THE FINANCIAL MANAGEMENT OF DISASTER RISKS 17-18 September 2015 Kuala
More informationCDEMA Symposium to Commemorate the 10th Anniversary of Hurricane Ivan Exploring Response and Recovery, Embracing Resilience
CDEMA Symposium to Commemorate the 10th Anniversary of Hurricane Ivan Exploring Response and Recovery, Embracing Resilience Radisson Grenada Beach Resort, Grand Anse, Grenada 1st 3rd December, 2014 CCRIF
More informationUnderstanding CCRIF s Hurricane, Earthquake and Excess Rainfall Policies
Understanding CCRIF s Hurricane, Earthquake and Excess Rainfall Policies Technical Paper Series # 1 Revised March 2015 Background and Introduction G overnments are often challenged with the significant
More informationEvaluating Sovereign Disaster Risk Finance Strategies: Case Studies and Guidance
Public Disclosure Authorized Evaluating Sovereign Disaster Risk Finance Strategies: Case Studies and Guidance October 2016 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
More informationMaking Index Insurance Work for the Poor
Making Index Insurance Work for the Poor Xavier Giné, DECFP April 7, 2015 It is odd that there appear to have been no practical proposals for establishing a set of markets to hedge the biggest risks to
More informationInsuResilience Solutions Fund (ISF) Transforming concepts into products
InsuResilience Solutions Fund (ISF) Transforming concepts into products The need for climate risk insurance solutions Increasing risks of natural disasters Increasing intensity and frequency of extreme
More informationPROGRAM INFORMATION DOCUMENT (PID) APPRAISAL STAGE
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized PROGRAM INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6188 Operation Name
More informationManagement of Catastrophies OECD Conference, Hyderabad February Insurance solutions for emerging markets
Insurance solutions for emerging markets Today s agenda Importance of insurance to emerging markets Public-private partnership in delivering insurance solutions What is needed for a successful public-private
More informationJamaica. October 24, Remarks Dr. Warren Smith WFCP Page 1
Remarks by Dr. W m. Warren Smith President Caribbean Development Bank at the Opening Ceremony of the Sixth Meeting of the World Forum of Catastrophe Programmes Montego Bay Jamaica October 24, 2011 Remarks
More informationInternational Agricultural and Natural Catastrophe Insurance Forum. Experience by GIZ Matthias Range
International Agricultural and Natural Catastrophe Insurance Forum Experience by GIZ Rüschlikon, Switzerland, October 2016 Seite 1 Agenda GIZ GIZ and Financial Systems Development GIZ and Agricultural
More informationDisaster Risk Financing in Japan
2015/FDM1/019 Session: 5 Disaster Risk Financing in Japan Purpose: Information Submitted by: Japan Finance and Central Bank Deputies Meeting Tagaytay, Philippines 5-6 March 2015 Session5 Enhancing Financial
More informationDISASTER RISK FINANCING AND INSURANCE PROGRAM
DISASTER RISK FINANCING AND INSURANCE PROGRAM Strengthening Financial Resilience to Disasters What We Do DRFIP helps developing countries manage the cost of disaster and climate shocks. The initiative
More informationSoutheast Asia Disaster Risk Insurance Facility
Southeast Asia Disaster Risk Insurance Facility PROTECT THE GREATEST HOME OF ALL: OUR COUNTRIES SEADRIF is a regional platform to provide ASEAN countries with financial solutions and technical advice to
More informationRisk Mitigation and the role of (re)insurance
Risk Mitigation and the role of (re)insurance Michael Eberhardt, CFA < copyright name, company or Institute> This presentation has been prepared for the Actuaries Institute 2016 Managing Extreme Events
More informationPhilippine City Disaster Insurance Pool (PCDIP)
Philippine City Disaster Insurance Pool (PCDIP) Strengthening the Enabling Environment for Disaster Risk Financing: Options for Enhancing Financial Resilience Benita Ainabe Financial Sector Specialist
More informationCountry Risk Management Walter Bell March 16, 2011
Country Risk Management Walter Bell March 16, 2011 Global Risks Landscape 2011 5 Risk categories Economic (11) Geopolitical (9) Environmental (7) Societal (7) Technological (3) 37 Risks 6 Top risks Fiscal
More informationNatural catastrophes: A risk transfer concept for Italy
Natural catastrophes: A risk transfer concept for Italy AIDA Michael seminar Schwarz, on natural December catastrophes 2007 Milan, 19 January 2009 AIDA Seminar, 19 January 10 Nat Cat Insurance Solutions
More informationFinancing Instruments and Access to Finance
Financing Instruments and Access to Finance Workshop on Building Resilience to Natural Disasters and Climate Change 6 April 2017 Outline 1. What needs to be financed? 2. What funds are there? 3. How can
More informationCATASTROPHE RISK MODELLING AND INSURANCE PENETRATION IN DEVELOPING COUNTRIES
CATASTROPHE RISK MODELLING AND INSURANCE PENETRATION IN DEVELOPING COUNTRIES M.R. Zolfaghari 1 1 Assistant Professor, Civil Engineering Department, KNT University, Tehran, Iran mzolfaghari@kntu.ac.ir ABSTRACT:
More informationBuilding an evidence base on the role of insurance-based mechanisms in promoting climate resilience
Building an evidence base on the role of insurance-based mechanisms in promoting climate resilience Report prepared for PPCR side event 10th November 2015 2 This work is a product of the Climate Investment
More informationPCDIP. Philippine City Disaster Insurance Pool
PCDIP Philippine City Disaster Insurance Pool Disaster Risk The Philippines is located in one of the world s most disaster-prone regions. Positioned on the Pacific Ring of Fire and within the Western North
More informationAndrew Goodland INDEX BASED INSURANCE AND DISASTER RISK MANAGEMENT IN MONGOLIA
Andrew Goodland INDEX BASED INSURANCE AND DISASTER RISK MANAGEMENT IN MONGOLIA Brief context of Mongolia livestock sector Mongolia is a country of 2.5 m people and 33 million livestock Mongolia is one
More informationCatastrophe Risk Financing in Developing Countries
OVERVIEW Catastrophe Risk Financing in Developing Countries Principles for Public Intervention J. David Cummins Olivier Mahul Tribute to GFDRR Partners Since its establishment in September 2006, the Global
More informationTHE CLIMATE RISK INSURANCE INITIATIVE
THE CLIMATE RISK INSURANCE INITIATIVE InsuResilience at a glance The InsuResilience Climate Risk Insurance Initiative was adopted by the G7 partner countries Germany, France, Italy, Japan, Canada, the
More informationDISASTER RISK FINANCING STRATEGIES AND ITS COMPONENTS
DISASTER RISK FINANCING STRATEGIES AND ITS COMPONENTS Mamiko Yokoi-Arai, Principal Administrator, Insurance and Private Pensions, OECD Joint DAC-EPOC Task Team on Climate Change and Development Co-operation
More informationGlobal Resilience Risk
Global Resilience Risk An Insurers Perspective WEC Energy Summit 16 March 2016 Jamie Summons, Head of Weather Solutions, Asia Pacific Swiss Re Weather Market Capability Global presence, market leadership
More informationRegional Conference on Risk Transfer and Micro-Insurance for Resilience Building in the IGAD region
Background Concept Note Regional Conference on Risk Transfer and Micro-Insurance for Resilience Building in the IGAD region Kampala, Uganda September 2-3, 2016 With the increasing number of disasters over
More informationPolicy and Evaluation Committee
Inter-American Development Bank Policy and Evaluation Committee For consideration Subsequently Committee of the Whole, if so agreed GN-2354-7 8 February 2007 Original: English To: From: Subject: The Board
More informationAdaptation Committee: Workshop on the means of implementation for enhanced adaptation action. 2-4 March 2015 Wissenschaftszentrum, Bonn
Adaptation Committee: Workshop on the means of implementation for enhanced adaptation action 2-4 March 2015 Wissenschaftszentrum, Bonn The way disaster response in Africa has worked for over 60 years Household
More informationOverview of Disaster Risk Financing in APEC Economies
2015/FMP/SEM1/009 Session: 5 Overview of Disaster Risk Financing in APEC Economies Submitted by: OECD Seminar on Disaster Risk Finance APEC Roadmap for Resilient Economies Bacolod, Philippines 29-30 April
More informationPROMOTING ACCESS TO AGRICULTURAL INSURANCE IN DEVELOPING COUNTRIES 1
PROMOTING ACCESS TO AGRICULTURAL INSURANCE IN DEVELOPING COUNTRIES 1 AGRICULTURAL INSURANCE DEVELOPMENT PROGRAM (AIDP) STRATEGY PAPER - 2013-2015 APRIL 15, 2013 INTRODUCTION 1. Many pilot agricultural
More information