Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach
Twenty-two of India's 31 states are regarded as particularly prone to natural disasters: 55% of its land is vulnerable to earthquake, 8% is vulnerable to cyclone, and 5% is vulnerable to flood. In light of India's vulnerability to growing...
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| Format: | Other Financial Sector Study |
| Language: | English en_US |
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Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/08/2693713/india-financing-rapid-onset-natural-disaster-losses-india-risk-management-approach http://hdl.handle.net/10986/14649 |
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okr-10986-14649 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADB CAPITAL BUDGETS CAPITAL PROJECTS CATASTROPHE FUNDS CATASTROPHE LOSS CATASTROPHE REINSURANCE CATASTROPHES CDF CENTRAL GOVERNMENTS COMMISSIONS CONSUMERS CYCLONES DEBT DEFICITS DEFORESTATION DEVELOPMENT ORGANIZATIONS DISASTER ASSISTANCE DISASTER INSURANCE DISASTER MANAGEMENT DISASTER MANAGEMENT FACILITY DISASTER RECONSTRUCTION DISASTER RELIEF DISASTER RESPONSE DISASTERS DROUGHTS EARTHQUAKE RECONSTRUCTION EARTHQUAKES ECONOMIC EFFECTS ECONOMICS EMERGENCIES ENVIRONMENTAL DEGRADATION FATALITIES FLOODING FLOODS GOVERNMENT INTERVENTION HOUSING HOUSING CONSTRUCTION INCOME INSURANCE INSURANCE MARKETS INSURERS LIFE INSURANCE PREMIUMS LIVING CONDITIONS MIGRATION MITIGATION NATURAL DISASTERS NATURAL HAZARDS NON- LIFE INSURANCE NON-LIFE INSURANCE PRIVATE INSURANCE PROGRAMS RATES RECURRENT EXPENDITURES REINSURANCE RELIEF RELIEF EFFORTS RELIEF WORK REVENUE SHARING RISK MANAGEMENT RISK MANAGEMENT MODEL RISK REDUCTION RISK TRANSFER SEWAGE SLOW ONSET DISASTERS SLUMS SUBSIDIARY TAXATION TIDAL WAVES URBANIZATION NATURAL DISASTER ASSISTANCE EARTHQUAKE HAZARD ANALYSIS CYCLONE FLOOD RISK MONITORING RISK MANAGEMENT PROJECTS FINANCING MECHANISMS POST DISASTER ACTIVITIES RECONSTRUCTION PROJECTS PUBLIC FUNDS LIVING CONDITIONS POOR PEOPLE METHODOLOGY GOVERNMENT REVENUE HUMAN MORTALITY FINANCIAL LOSS INCENTIVES INSURANCE ECONOMIC RECOVERY EX ANTE ANALYSIS INSTITUTIONAL CAPACITY INSURANCE MARKETS POLICY OBJECTIVES MORTGAGE MARKETS |
| spellingShingle |
ACCOUNTING ADB CAPITAL BUDGETS CAPITAL PROJECTS CATASTROPHE FUNDS CATASTROPHE LOSS CATASTROPHE REINSURANCE CATASTROPHES CDF CENTRAL GOVERNMENTS COMMISSIONS CONSUMERS CYCLONES DEBT DEFICITS DEFORESTATION DEVELOPMENT ORGANIZATIONS DISASTER ASSISTANCE DISASTER INSURANCE DISASTER MANAGEMENT DISASTER MANAGEMENT FACILITY DISASTER RECONSTRUCTION DISASTER RELIEF DISASTER RESPONSE DISASTERS DROUGHTS EARTHQUAKE RECONSTRUCTION EARTHQUAKES ECONOMIC EFFECTS ECONOMICS EMERGENCIES ENVIRONMENTAL DEGRADATION FATALITIES FLOODING FLOODS GOVERNMENT INTERVENTION HOUSING HOUSING CONSTRUCTION INCOME INSURANCE INSURANCE MARKETS INSURERS LIFE INSURANCE PREMIUMS LIVING CONDITIONS MIGRATION MITIGATION NATURAL DISASTERS NATURAL HAZARDS NON- LIFE INSURANCE NON-LIFE INSURANCE PRIVATE INSURANCE PROGRAMS RATES RECURRENT EXPENDITURES REINSURANCE RELIEF RELIEF EFFORTS RELIEF WORK REVENUE SHARING RISK MANAGEMENT RISK MANAGEMENT MODEL RISK REDUCTION RISK TRANSFER SEWAGE SLOW ONSET DISASTERS SLUMS SUBSIDIARY TAXATION TIDAL WAVES URBANIZATION NATURAL DISASTER ASSISTANCE EARTHQUAKE HAZARD ANALYSIS CYCLONE FLOOD RISK MONITORING RISK MANAGEMENT PROJECTS FINANCING MECHANISMS POST DISASTER ACTIVITIES RECONSTRUCTION PROJECTS PUBLIC FUNDS LIVING CONDITIONS POOR PEOPLE METHODOLOGY GOVERNMENT REVENUE HUMAN MORTALITY FINANCIAL LOSS INCENTIVES INSURANCE ECONOMIC RECOVERY EX ANTE ANALYSIS INSTITUTIONAL CAPACITY INSURANCE MARKETS POLICY OBJECTIVES MORTGAGE MARKETS World Bank Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| geographic_facet |
South Asia |
| description |
Twenty-two of India's 31 states are
regarded as particularly prone to natural disasters: 55% of
its land is vulnerable to earthquake, 8% is vulnerable to
cyclone, and 5% is vulnerable to flood. In light of
India's vulnerability to growing losses due to natural
disasters and escalating fiscal pressures at the central and
state levels, the World Bank undertook a detailed review of
India's catastrophe exposures. The goal of this project
was to examine loss potentials from rapid onset natural
disasters and to consider the opportunity to apply enhanced
country and state level risk management techniques, with a
particular emphasis on the financing of post disaster
reconstruction and the efficient allocation of public funds.
The country risk management approach is based partly on
corporate risk management principles, but accounts for key
economic and social metrics such as government fiscal
profiles and the living conditions of the poor. The first
step under this methodology is to assess the potential
losses from natural hazards on a probabilistic basis, and
detailed studies were carried out in four states. The next
step involves a formal and structured approach to understand
the funding of natural calamity losses and identify the
"natural disasters funding gap," which is the
difference between the expected fiscal cost of an event and
available ex post sources of government revenue. The study
concludes that India still adopts a primarily reactive, or
coping, approach to dealing with natural disasters. The
current program, particularly at the national level, lacks
institutional incentives and underplays the role of risk
financing through ex ante mechanisms such as catastrophe
reinsurance and contingent credit facilities. The
development of ex ante funding programs is particularly
critical because these programs typically serve as a primary
source of immediate liquidity that would reduce human
suffering, economic loss, and fiscal pressures in the
aftermath of a natural disaster, and kick-start economic
recovery. Ex ante funding approaches can also foster
mitigation and provide incentives for institutional capacity building. |
| format |
Economic & Sector Work :: Other Financial Sector Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| title_short |
Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| title_full |
Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| title_fullStr |
Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| title_full_unstemmed |
Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach |
| title_sort |
financing rapid onset natural disaster losses in india : a risk management approach |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/08/2693713/india-financing-rapid-onset-natural-disaster-losses-india-risk-management-approach http://hdl.handle.net/10986/14649 |
| _version_ |
1764428304407855104 |
| spelling |
okr-10986-146492021-04-23T14:03:17Z Financing Rapid Onset Natural Disaster Losses in India : A Risk Management Approach World Bank ACCOUNTING ADB CAPITAL BUDGETS CAPITAL PROJECTS CATASTROPHE FUNDS CATASTROPHE LOSS CATASTROPHE REINSURANCE CATASTROPHES CDF CENTRAL GOVERNMENTS COMMISSIONS CONSUMERS CYCLONES DEBT DEFICITS DEFORESTATION DEVELOPMENT ORGANIZATIONS DISASTER ASSISTANCE DISASTER INSURANCE DISASTER MANAGEMENT DISASTER MANAGEMENT FACILITY DISASTER RECONSTRUCTION DISASTER RELIEF DISASTER RESPONSE DISASTERS DROUGHTS EARTHQUAKE RECONSTRUCTION EARTHQUAKES ECONOMIC EFFECTS ECONOMICS EMERGENCIES ENVIRONMENTAL DEGRADATION FATALITIES FLOODING FLOODS GOVERNMENT INTERVENTION HOUSING HOUSING CONSTRUCTION INCOME INSURANCE INSURANCE MARKETS INSURERS LIFE INSURANCE PREMIUMS LIVING CONDITIONS MIGRATION MITIGATION NATURAL DISASTERS NATURAL HAZARDS NON- LIFE INSURANCE NON-LIFE INSURANCE PRIVATE INSURANCE PROGRAMS RATES RECURRENT EXPENDITURES REINSURANCE RELIEF RELIEF EFFORTS RELIEF WORK REVENUE SHARING RISK MANAGEMENT RISK MANAGEMENT MODEL RISK REDUCTION RISK TRANSFER SEWAGE SLOW ONSET DISASTERS SLUMS SUBSIDIARY TAXATION TIDAL WAVES URBANIZATION NATURAL DISASTER ASSISTANCE EARTHQUAKE HAZARD ANALYSIS CYCLONE FLOOD RISK MONITORING RISK MANAGEMENT PROJECTS FINANCING MECHANISMS POST DISASTER ACTIVITIES RECONSTRUCTION PROJECTS PUBLIC FUNDS LIVING CONDITIONS POOR PEOPLE METHODOLOGY GOVERNMENT REVENUE HUMAN MORTALITY FINANCIAL LOSS INCENTIVES INSURANCE ECONOMIC RECOVERY EX ANTE ANALYSIS INSTITUTIONAL CAPACITY INSURANCE MARKETS POLICY OBJECTIVES MORTGAGE MARKETS Twenty-two of India's 31 states are regarded as particularly prone to natural disasters: 55% of its land is vulnerable to earthquake, 8% is vulnerable to cyclone, and 5% is vulnerable to flood. In light of India's vulnerability to growing losses due to natural disasters and escalating fiscal pressures at the central and state levels, the World Bank undertook a detailed review of India's catastrophe exposures. The goal of this project was to examine loss potentials from rapid onset natural disasters and to consider the opportunity to apply enhanced country and state level risk management techniques, with a particular emphasis on the financing of post disaster reconstruction and the efficient allocation of public funds. The country risk management approach is based partly on corporate risk management principles, but accounts for key economic and social metrics such as government fiscal profiles and the living conditions of the poor. The first step under this methodology is to assess the potential losses from natural hazards on a probabilistic basis, and detailed studies were carried out in four states. The next step involves a formal and structured approach to understand the funding of natural calamity losses and identify the "natural disasters funding gap," which is the difference between the expected fiscal cost of an event and available ex post sources of government revenue. The study concludes that India still adopts a primarily reactive, or coping, approach to dealing with natural disasters. The current program, particularly at the national level, lacks institutional incentives and underplays the role of risk financing through ex ante mechanisms such as catastrophe reinsurance and contingent credit facilities. The development of ex ante funding programs is particularly critical because these programs typically serve as a primary source of immediate liquidity that would reduce human suffering, economic loss, and fiscal pressures in the aftermath of a natural disaster, and kick-start economic recovery. Ex ante funding approaches can also foster mitigation and provide incentives for institutional capacity building. 2013-07-29T20:42:54Z 2013-07-29T20:42:54Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2693713/india-financing-rapid-onset-natural-disaster-losses-india-risk-management-approach http://hdl.handle.net/10986/14649 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Financial Sector Study Economic & Sector Work South Asia |