Disaster Risk Financing : Case Studies

In this note, the instruments supporting risk retention and risk financing at the national and regional/international levels will be the sole focus. Risk transfer, including insurance, is a very broad subject and requires a separate discussion; how...

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Main Author:	Poundrik, Sandeep
Format:	Brief
Language:	English
Published:	2012
Subjects:	ATTACHMENT POINT BORROWER BORROWING CAPACITY BUDGET CONSTRAINTS CAPITAL REQUIREMENT CATASTROPHE BONDS CATASTROPHE FUND CATASTROPHIC EVENT CLIMATE CHANGE COVERAGE CREDIBILITY CREDIT LINE DAMAGES DEBT DEBT BURDEN DECLARATION DEVELOPING COUNTRIES DEVELOPMENT ORGANIZATIONS DISASTER DISASTER MANAGEMENT DISASTER MANAGEMENT ACTIVITIES DISASTER MITIGATION DISASTER MITIGATION MEASURES DISASTER PREPAREDNESS DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTERS DISBURSEMENT DISBURSEMENTS DIVERSIFIED PORTFOLIO DROUGHT DROUGHTS EARLY WARNING EARLY WARNING SYSTEM EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKES EMERGENCY DECREES EMERGENCY MANAGEMENT EMERGENCY OPERATIONS EMERGENCY PLAN EMERGENCY RELIEF EMERGENCY RESPONSES EMERGENCY SITUATIONS EXPROPRIATIONS FINANCES FINANCIAL SUPPORT FLOODS FOOD RELIEF FOOD SECURITY FORGIVENESS FUNGIBLE GLOBAL MARKET HEALTH CARE HOLDING HUMANITARIAN ASSISTANCE HURRICANE HURRICANES IMPACT OF DISASTERS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COVERAGE INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURERS INTERNATIONAL AGENCIES INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT INSTRUMENTS INVESTMENT INSURANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LINE OF CREDIT LIQUIDITY LIQUIDITY PROBLEMS LOAN LOAN AMOUNT LOAN REPAYMENT LOCAL GOVERNMENTS LOW INCOME FARMERS MATURITY MICRO FINANCE MICRO INSURANCE NATIONAL EMERGENCY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS OIL PRICES OPPORTUNITY COST POLITICAL ECONOMY PREMIUM PAYMENT PREMIUMS PROGRAMS RECONSTRUCTION REINSURANCE REINSURANCE MARKETS RELIEF RESERVE RESERVE FUND RESERVE FUNDS RESERVES RETURN RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK POOLING RISK TRANSFER SAVINGS SMALL BUSINESSES SWAPS TAX TRANSFER RISK TRANSPARENCY TREASURY TRUST DEED TRUST FUND VICTIMS WAR WEATHER EVENTS WIND SPEED
Online Access:	http://documents.worldbank.org/curated/en/2011/03/13972345/disaster-risk-financing-case-studies http://hdl.handle.net/10986/10104

id	okr-10986-10104
recordtype	oai_dc
spelling	okr-10986-101042021-04-23T14:02:48Z Disaster Risk Financing : Case Studies Poundrik, Sandeep ATTACHMENT POINT BORROWER BORROWING CAPACITY BUDGET CONSTRAINTS CAPITAL REQUIREMENT CATASTROPHE BONDS CATASTROPHE FUND CATASTROPHIC EVENT CLIMATE CHANGE COVERAGE CREDIBILITY CREDIT LINE DAMAGES DEBT DEBT BURDEN DECLARATION DEVELOPING COUNTRIES DEVELOPMENT ORGANIZATIONS DISASTER DISASTER MANAGEMENT DISASTER MANAGEMENT ACTIVITIES DISASTER MITIGATION DISASTER MITIGATION MEASURES DISASTER PREPAREDNESS DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTERS DISBURSEMENT DISBURSEMENTS DIVERSIFIED PORTFOLIO DROUGHT DROUGHTS EARLY WARNING EARLY WARNING SYSTEM EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKES EMERGENCY DECREES EMERGENCY MANAGEMENT EMERGENCY OPERATIONS EMERGENCY PLAN EMERGENCY RELIEF EMERGENCY RESPONSES EMERGENCY SITUATIONS EXPROPRIATIONS FINANCES FINANCIAL SUPPORT FLOODS FOOD RELIEF FOOD SECURITY FORGIVENESS FUNGIBLE GLOBAL MARKET HEALTH CARE HOLDING HUMANITARIAN ASSISTANCE HURRICANE HURRICANES IMPACT OF DISASTERS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COVERAGE INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURERS INTERNATIONAL AGENCIES INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT INSTRUMENTS INVESTMENT INSURANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LINE OF CREDIT LIQUIDITY LIQUIDITY PROBLEMS LOAN LOAN AMOUNT LOAN REPAYMENT LOCAL GOVERNMENTS LOW INCOME FARMERS MATURITY MICRO FINANCE MICRO INSURANCE NATIONAL EMERGENCY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS OIL PRICES OPPORTUNITY COST POLITICAL ECONOMY PREMIUM PAYMENT PREMIUMS PROGRAMS RECONSTRUCTION REINSURANCE REINSURANCE MARKETS RELIEF RESERVE RESERVE FUND RESERVE FUNDS RESERVES RETURN RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK POOLING RISK TRANSFER SAVINGS SMALL BUSINESSES SWAPS TAX TRANSFER RISK TRANSPARENCY TREASURY TRUST DEED TRUST FUND VICTIMS WAR WEATHER EVENTS WIND SPEED In this note, the instruments supporting risk retention and risk financing at the national and regional/international levels will be the sole focus. Risk transfer, including insurance, is a very broad subject and requires a separate discussion; however, when a hybrid solution involves a transfer of risk or an instrument at the household or community level, a brief explanation of the instrument ensues. To this end, the note reviews examples generally considered to be good practices in the sector and seeks to elucidate well-regarded risk retention instruments and financing. The choice of instruments in disaster risk financing depends on many factors. One way of looking at it is to classify the disasters in terms of their expected severity and frequency. More frequent disasters with low expected severity are better financed by retaining the risk, as the cost of transferring such risk will be disproportionately high compared to the expected damages or payments. On the other hand, risk associated with low frequency-high severity disasters is best transferred to the international reinsurance market, as government may not have the capacity and resources to sustain the damages caused by such disasters. Finally, as the case studies in this note indicate, the uptake of risk retention and risk transfer mechanisms has made countries more resilient to natural disaster. 2012-08-13T10:25:58Z 2012-08-13T10:25:58Z 2011-03 http://documents.worldbank.org/curated/en/2011/03/13972345/disaster-risk-financing-case-studies http://hdl.handle.net/10986/10104 English EAP DRM Knowledge Notes; No. 23 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Brief Publications & Research East Asia and Pacific
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ATTACHMENT POINT BORROWER BORROWING CAPACITY BUDGET CONSTRAINTS CAPITAL REQUIREMENT CATASTROPHE BONDS CATASTROPHE FUND CATASTROPHIC EVENT CLIMATE CHANGE COVERAGE CREDIBILITY CREDIT LINE DAMAGES DEBT DEBT BURDEN DECLARATION DEVELOPING COUNTRIES DEVELOPMENT ORGANIZATIONS DISASTER DISASTER MANAGEMENT DISASTER MANAGEMENT ACTIVITIES DISASTER MITIGATION DISASTER MITIGATION MEASURES DISASTER PREPAREDNESS DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTERS DISBURSEMENT DISBURSEMENTS DIVERSIFIED PORTFOLIO DROUGHT DROUGHTS EARLY WARNING EARLY WARNING SYSTEM EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKES EMERGENCY DECREES EMERGENCY MANAGEMENT EMERGENCY OPERATIONS EMERGENCY PLAN EMERGENCY RELIEF EMERGENCY RESPONSES EMERGENCY SITUATIONS EXPROPRIATIONS FINANCES FINANCIAL SUPPORT FLOODS FOOD RELIEF FOOD SECURITY FORGIVENESS FUNGIBLE GLOBAL MARKET HEALTH CARE HOLDING HUMANITARIAN ASSISTANCE HURRICANE HURRICANES IMPACT OF DISASTERS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COVERAGE INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURERS INTERNATIONAL AGENCIES INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT INSTRUMENTS INVESTMENT INSURANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LINE OF CREDIT LIQUIDITY LIQUIDITY PROBLEMS LOAN LOAN AMOUNT LOAN REPAYMENT LOCAL GOVERNMENTS LOW INCOME FARMERS MATURITY MICRO FINANCE MICRO INSURANCE NATIONAL EMERGENCY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS OIL PRICES OPPORTUNITY COST POLITICAL ECONOMY PREMIUM PAYMENT PREMIUMS PROGRAMS RECONSTRUCTION REINSURANCE REINSURANCE MARKETS RELIEF RESERVE RESERVE FUND RESERVE FUNDS RESERVES RETURN RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK POOLING RISK TRANSFER SAVINGS SMALL BUSINESSES SWAPS TAX TRANSFER RISK TRANSPARENCY TREASURY TRUST DEED TRUST FUND VICTIMS WAR WEATHER EVENTS WIND SPEED
spellingShingle	ATTACHMENT POINT BORROWER BORROWING CAPACITY BUDGET CONSTRAINTS CAPITAL REQUIREMENT CATASTROPHE BONDS CATASTROPHE FUND CATASTROPHIC EVENT CLIMATE CHANGE COVERAGE CREDIBILITY CREDIT LINE DAMAGES DEBT DEBT BURDEN DECLARATION DEVELOPING COUNTRIES DEVELOPMENT ORGANIZATIONS DISASTER DISASTER MANAGEMENT DISASTER MANAGEMENT ACTIVITIES DISASTER MITIGATION DISASTER MITIGATION MEASURES DISASTER PREPAREDNESS DISASTER RECOVERY DISASTER REDUCTION DISASTER RISK DISASTERS DISBURSEMENT DISBURSEMENTS DIVERSIFIED PORTFOLIO DROUGHT DROUGHTS EARLY WARNING EARLY WARNING SYSTEM EARLY WARNING SYSTEMS EARTHQUAKE EARTHQUAKES EMERGENCY DECREES EMERGENCY MANAGEMENT EMERGENCY OPERATIONS EMERGENCY PLAN EMERGENCY RELIEF EMERGENCY RESPONSES EMERGENCY SITUATIONS EXPROPRIATIONS FINANCES FINANCIAL SUPPORT FLOODS FOOD RELIEF FOOD SECURITY FORGIVENESS FUNGIBLE GLOBAL MARKET HEALTH CARE HOLDING HUMANITARIAN ASSISTANCE HURRICANE HURRICANES IMPACT OF DISASTERS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COVERAGE INSURANCE POLICIES INSURANCE POLICY INSURANCE POOLS INSURANCE PREMIUM INSURERS INTERNATIONAL AGENCIES INTERNATIONAL FINANCIAL MARKETS INVESTING INVESTMENT INSTRUMENTS INVESTMENT INSURANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LINE OF CREDIT LIQUIDITY LIQUIDITY PROBLEMS LOAN LOAN AMOUNT LOAN REPAYMENT LOCAL GOVERNMENTS LOW INCOME FARMERS MATURITY MICRO FINANCE MICRO INSURANCE NATIONAL EMERGENCY NATURAL DISASTER NATURAL DISASTERS NATURAL HAZARDS OIL PRICES OPPORTUNITY COST POLITICAL ECONOMY PREMIUM PAYMENT PREMIUMS PROGRAMS RECONSTRUCTION REINSURANCE REINSURANCE MARKETS RELIEF RESERVE RESERVE FUND RESERVE FUNDS RESERVES RETURN RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK POOLING RISK TRANSFER SAVINGS SMALL BUSINESSES SWAPS TAX TRANSFER RISK TRANSPARENCY TREASURY TRUST DEED TRUST FUND VICTIMS WAR WEATHER EVENTS WIND SPEED Poundrik, Sandeep Disaster Risk Financing : Case Studies
geographic_facet	East Asia and Pacific
relation	EAP DRM Knowledge Notes; No. 23
description	In this note, the instruments supporting risk retention and risk financing at the national and regional/international levels will be the sole focus. Risk transfer, including insurance, is a very broad subject and requires a separate discussion; however, when a hybrid solution involves a transfer of risk or an instrument at the household or community level, a brief explanation of the instrument ensues. To this end, the note reviews examples generally considered to be good practices in the sector and seeks to elucidate well-regarded risk retention instruments and financing. The choice of instruments in disaster risk financing depends on many factors. One way of looking at it is to classify the disasters in terms of their expected severity and frequency. More frequent disasters with low expected severity are better financed by retaining the risk, as the cost of transferring such risk will be disproportionately high compared to the expected damages or payments. On the other hand, risk associated with low frequency-high severity disasters is best transferred to the international reinsurance market, as government may not have the capacity and resources to sustain the damages caused by such disasters. Finally, as the case studies in this note indicate, the uptake of risk retention and risk transfer mechanisms has made countries more resilient to natural disaster.
format	Publications & Research :: Brief
author	Poundrik, Sandeep
author_facet	Poundrik, Sandeep
author_sort	Poundrik, Sandeep
title	Disaster Risk Financing : Case Studies
title_short	Disaster Risk Financing : Case Studies
title_full	Disaster Risk Financing : Case Studies
title_fullStr	Disaster Risk Financing : Case Studies
title_full_unstemmed	Disaster Risk Financing : Case Studies
title_sort	disaster risk financing : case studies
publishDate	2012
url	http://documents.worldbank.org/curated/en/2011/03/13972345/disaster-risk-financing-case-studies http://hdl.handle.net/10986/10104
_version_	1764411852503121920

Disaster Risk Financing : Case Studies

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