Natural Disaster Risk Management And Financing Disaster Losses In Developing Countries

Author : Reinhard Mechler
Publisher : Verlag Versicherungswirtschaft
Page : 312 pages
File Size : 43,6 Mb
Release : 2004-04-01
Category : Law
ISBN : 389952120X

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Natural Disaster Risk Management and Financing Disaster Losses in Developing Countries by Reinhard Mechler Pdf

Natural disasters may cause large economic impacts and impede socioeconomic development in developing countries considerably. Increasingly, risk management, the management of disasters before the actual occurrence of events, is being advocated. Risk financing measures taken by national governments, such as insurance und reinsurance, are important components of a risk management strategy. Often developing countries are not able to finance the costs of relief and reconstruction by their own means and have to rely on the international donor community as their "reinsurer of last resort". The main objective of the book is to establish a platform to provide information on the costs caused by disasters and the costs and benefits of disaster risk management focusing on ex-ante risk financing measures taken governments in developing countries. The final objective is to provide insight into the specific conditions where risk financing may constitute an option that provides net benefits and increases social welfare. The modelling using a stochastic simulation approach incorporates probabilistic information on the direct losses due to natural disasters into a macroeconomic projection model. Outputs are macroeconomic flow impacts such as impacts on GPD. In order to analyze the costs and benefits due to undertaking risk management measures, a Cost-Benefit Analysis approach is employed using the mean-variance method. Two case studies are conducted on countries with different exposures to disaster risk and different economic vulnerabilities: Honduras and Argentina. A major insight derived from the case studies is that under certain conditions risk financing arrangements may decrease the vulnerability to natural hazards resulting in more robust development in developing economics.

Author : Stefan Hochrainer
Publisher : Springer Science & Business Media
Page : 213 pages
File Size : 41,8 Mb
Release : 2007-12-14
Category : Business & Economics
ISBN : 9783835094413

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Macroeconomic Risk Management Against Natural Disasters by Stefan Hochrainer Pdf

Stefan Hochrainer develops a catastrophe risk management model. It illustrates which trade-offs and choices a country must make in managing economic risks due to natural disasters. Budgetary resources are allocated to pre-disaster risk management strategies to reduce the probability of financing gaps. The framework and model approach allows cross country comparisons as well as the assessment of financial vulnerability, macroeconomic risk, and risk management strategies. Three case studies demonstrate its flexibility and coherent approach.

Author : J. David Cummins,Olivier Mahul
Publisher : World Bank Publications
Page : 299 pages
File Size : 42,7 Mb
Release : 2009
Category : Political Science
ISBN : 9780821377369

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Catastrophe Risk Financing in Developing Countries by J. David Cummins,Olivier Mahul Pdf

'Catastrophe Risk Financing in Developing Countries' provides a detailed analysis of the imperfections and inefficiencies that impede the emergence of competitive catastrophe risk markets in developing countries. The book demonstrates how donors and international financial institutions can assist governments in middle- and low-income countries in promoting effective and affordable catastrophe risk financing solutions. The authors present guiding principles on how and when governments, with assistance from donors and international financial institutions, should intervene in catastrophe insurance markets. They also identify key activities to be undertaken by donors and institutions that would allow middle- and low-income countries to develop competitive and cost-effective catastrophe risk financing strategies at both the macro (government) and micro (household) levels. These principles and activities are expected to inform good practices and ensure desirable results in catastrophe insurance projects. 'Catastrophe Risk Financing in Developing Countries' offers valuable advice and guidelines to policy makers and insurance practitioners involved in the development of catastrophe insurance programs in developing countries.

Author : Charlotte Benson,Edward J. Clay
Publisher : World Bank Publications
Page : 136 pages
File Size : 47,7 Mb
Release : 2004
Category : Electronic
ISBN : 0821356852

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Understanding the economic and financial impacts of natural disasters by Charlotte Benson,Edward J. Clay Pdf

Author : Alcira Kreimer,Margaret Arnold
Publisher : World Bank Publications
Page : 212 pages
File Size : 54,5 Mb
Release : 2000-01-01
Category : Social Science
ISBN : 0821347268

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Managing Disaster Risk in Emerging Economies by Alcira Kreimer,Margaret Arnold Pdf

In 1999 natural catastrophes and man-made disasters claimed more than 105,000 lives, 95 percent of them in the developing world, and caused economic losses of around US$100 billion. In 1998 the twin disasters of the Yangtze and Hurrican Mitch accounted for two-thirds of the US$65 billion loss. The geographical areas affected may vary, but one constant is that the per capita burden of catastrophic losses is dramatically higher in developing countries. To respond to an increased demand to assist disaster rcovery programmes, the World Bank set up the Disaster Management Facility in 1998, to help provide the Bank with a more rapid and strategic response to disaster emergencies. The DMF focuses on risk identification, risk reduction, and risk sharing/transfer, the three major topics in this volume. The DMF also promotes strategic alliances with key private, government, multilateral and nongovernmental organisations to ensure the inclusion of disaster risk reduction as a central value of development. The most important of these partnerships is the ProVention Consortium, launched in February 2000, based on the premise that we must all take responsibility for making the new millennium a safer one.

Author : Charlotte Benson,Edward J. Clay
Publisher : World Bank Publications
Page : 136 pages
File Size : 51,8 Mb
Release : 2004
Category : Disaster relief
ISBN : UCSD:31822033279829

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Understanding the Economic and Financial Impacts of Natural Disasters by Charlotte Benson,Edward J. Clay Pdf

Disaster prevention and mitigation are integral to development activities. In February 2000, the World Bank's Disaster Management Facility initiated a three-year study on the economic and financial consequences of natural disasters with the support of the U.K. Department for International Development.

Author : Francis Ghesquiere
Publisher : World Bank Publications
Page : 26 pages
File Size : 42,8 Mb
Release : 2012
Category : Electronic
ISBN : 8210379456XXX

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Sovereign Natural Disaster Insurance for Developing Countries: A Paradigm Shift in Catastrophe Risk Financing by Francis Ghesquiere Pdf

Economic theory suggests that countries should ignore uncertainty for public investment and behave as if indifferent to risk because they can pool risks to a much greater extent than private investors can. This paper discusses the general economic theory in the case of developing countries. The analysis identifies several cases where the government's risk-neutral assumption does not hold, thus making rational the use of ex ante risk financing instruments, including sovereign insurance. The paper discusses the optimal level of sovereign insurance. It argues that, because sovereign insurance is usually more expensive than post-disaster financing, it should mainly cover immediate needs, while long-term expenditures should be financed through post-disaster financing (including ex post borrowing and tax increases). In other words, sovereign insurance should not aim at financing the long-term resource gap, but only the short-term liquidity need.

Author : Eugene Gurenko,Rodney Lester
Publisher : World Bank Publications
Page : 35 pages
File Size : 48,6 Mb
Release : 2004
Category : Natural disasters
ISBN : 8210379456XXX

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Rapid Onset Natural Disasters by Eugene Gurenko,Rodney Lester Pdf

Gurenko and Lester provide a conceptual framework for designing a comprehensive risk management strategy for rapid onset natural disasters at the country level, with a particular emphasis on the role of catastrophe loss funding. The authors discuss the key policy and technical issues involved in building financially sustainable catastrophe risk transfer and funding programs in disaster prone countries and their links to risk mitigation. They also deal with the cognitive and political economy issues that are likely to arise and ways to accommodate them. This paper--a product of the Financial Sector Operations and Policy Department--is part of a larger effort in the department to develop modern risk management approaches at the country level.

Author : Olivier Mahul,Eugene Gurenko
Publisher : World Bank Publications
Page : 26 pages
File Size : 44,5 Mb
Release : 2024-06-16
Category : Electronic
ISBN : 8210379456XXX

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The Macro Financing of Natural Hazards in Developing Countries by Olivier Mahul,Eugene Gurenko Pdf

The authors propose a financial model to address the design of efficient risk financing strategies against natural disasters at the country level. It is simple enough to shed analytical light on some of the key issues but flexible and realistic enough to provide some quantitative guidance on the ex ante financing of catastrophic losses. The risk financing problem is decomposed into two steps. First, the resource gap, defined as the difference between losses and available ex-post resources (such as post-disaster aid), is identified. It determines the losses to be financed by ex ante financial instruments (reserves, catastrophe insurance, and contingent debt). Second, the cost-minimizing financial arrangements are derived from the marginal costs of the financial instruments. The model is solved through a series of graphical analyses that make this complex financial problem easier to apprehend. This model captures and explains the main impacts of financial parameters (such as insurance premium, cost of capital) on efficient risk financing structures.

Author : Juan José Durante,Rafael Rosillo
Publisher : Springer Nature
Page : 69 pages
File Size : 48,9 Mb
Release : 2020-08-11
Category : Business & Economics
ISBN : 9783030437084

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Natural Disasters and Climate Change by Juan José Durante,Rafael Rosillo Pdf

This book presents a technical approach to promoting the development of disaster and climate change risk financing and transfer strategies, and discusses several practical issues, chiefly focusing on Latin America and the Caribbean. Innovative risk financing and insurance mechanisms are vital for governments around the world, in order to provide financial protection and reduce the economic costs and social and developmental impacts of natural disasters and climate change. The book’s main content is complemented by a wealth of graphics, diagrams and tables that illustrate the concepts discussed and make the text accessible for practitioners and non-practitioners alike. The book offers proven, creative and innovative ideas on how to tackle risk financing and management for natural disasters and climate change. Strategic topics such as sovereign disaster risk financing, property catastrophe risk insurance, and agricultural insurance are also discussed.

Author : Eugene N. Gurenko
Publisher : Earthscan
Page : 97 pages
File Size : 45,9 Mb
Release : 2014-05-14
Category : Business & Economics
ISBN : 9781849775960

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Climate Change and Insurance by Eugene N. Gurenko Pdf

Climate change brings about a new set of major economic risks arising from changing weather patterns, extreme weather events and rising sea levels. Most at risk are developing countries who, despite considerable post-disaster donor aid, have been bearing the major brunt of disaster-related losses. One adaptation solution that is rapidly gaining the support of countries and international donors is a risk transfer to the global reinsurance and capital markets.This volume, a special issue of the journal Climate Policy, explores the role that insurance-based mechanisms can play in helping developing countries prepare for climate change. It offers a unique and comprehensive perspective on the potential role of insurance solutions in global adaptation to climate change and attempts to engender debate on the role of insurance in reducing global emissions and encouraging climate-friendly corporate behaviour.

Author : International Monetary Fund. Strategy, Policy, & Review Department,International Monetary Fund. Western Hemisphere Dept.,International Monetary Fund. Asia and Pacific Dept
Publisher : International Monetary Fund
Page : 55 pages
File Size : 54,9 Mb
Release : 2019-06-26
Category : Nature
ISBN : 9781498321020

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Building Resilience in Developing Countries Vulnerable to Large Natural Disasters by International Monetary Fund. Strategy, Policy, & Review Department,International Monetary Fund. Western Hemisphere Dept.,International Monetary Fund. Asia and Pacific Dept Pdf

This paper discusses how countries vulnerable to natural disasters can reduce the associated human and economic cost. Building on earlier work by IMF staff, the paper views disaster risk management through the lens of a three-pillar strategy for building structural, financial, and post-disaster (including social) resilience. A coherent disaster resilience strategy, based on a diagnostic of risks and cost-effective responses, can provide a road map for how to tackle disaster related vulnerabilities. It can also help mobilize much-needed support from the international community.

Author : Stephane Hallegatte,Adrien Vogt-Schilb,Mook Bangalore,Julie Rozenberg
Publisher : World Bank Publications
Page : 198 pages
File Size : 54,7 Mb
Release : 2016-11-24
Category : Nature
ISBN : 9781464810046

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Unbreakable by Stephane Hallegatte,Adrien Vogt-Schilb,Mook Bangalore,Julie Rozenberg Pdf

'Economic losses from natural disasters totaled $92 billion in 2015.' Such statements, all too commonplace, assess the severity of disasters by no other measure than the damage inflicted on buildings, infrastructure, and agricultural production. But $1 in losses does not mean the same thing to a rich person that it does to a poor person; the gravity of a $92 billion loss depends on who experiences it. By focusing on aggregate losses—the traditional approach to disaster risk—we restrict our consideration to how disasters affect those wealthy enough to have assets to lose in the first place, and largely ignore the plight of poor people. This report moves beyond asset and production losses and shifts its attention to how natural disasters affect people’s well-being. Disasters are far greater threats to well-being than traditional estimates suggest. This approach provides a more nuanced view of natural disasters than usual reporting, and a perspective that takes fuller account of poor people’s vulnerabilities. Poor people suffer only a fraction of economic losses caused by disasters, but they bear the brunt of their consequences. Understanding the disproportionate vulnerability of poor people also makes the case for setting new intervention priorities to lessen the impact of natural disasters on the world’s poor, such as expanding financial inclusion, disaster risk and health insurance, social protection and adaptive safety nets, contingent finance and reserve funds, and universal access to early warning systems. Efforts to reduce disaster risk and poverty go hand in hand. Because disasters impoverish so many, disaster risk management is inseparable from poverty reduction policy, and vice versa. As climate change magnifies natural hazards, and because protection infrastructure alone cannot eliminate risk, a more resilient population has never been more critical to breaking the cycle of disaster-induced poverty.

Author : OECD,The World Bank
Publisher : OECD Publishing
Page : 70 pages
File Size : 42,7 Mb
Release : 2016-11-10
Category : Electronic
ISBN : 9789264266919

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Climate and Disaster Resilience Financing in Small Island Developing States by OECD,The World Bank Pdf

Storms, hurricanes, and cyclones have been a feature of life on Small Island Developing States (SIDS) for centuries. But climate change is now increasing the intensity of these disasters, as well as creating new developmental challenges - like rising sea levels and increasing ocean acidity - ...

Author : Swenja Surminski,Thomas Tanner
Publisher : Springer
Page : 176 pages
File Size : 44,8 Mb
Release : 2016-11-25
Category : Business & Economics
ISBN : 9783319406947

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Realising the 'Triple Dividend of Resilience' by Swenja Surminski,Thomas Tanner Pdf

Why aren’t we investing more in disaster resilience, despite the rising costs of disaster events? This book argues that decision-makers in governments, businesses, households, and development agencies tend to focus on avoiding losses from disasters, and perceive the return on investment as uncertain – only realised if a somewhat unlikely disaster event actually happens. This book develops a new business case for investment based on the multiple dividends of resilience. This looks beyond only avoided losses (the first dividend) to the wider benefits gained independently of whether or not the disaster event occurs. These include unleashing entrepreneurial activities and productive investments by lowering the looming threat of losses from disasters and enabling businesses, farmers and homeowners to take positive risks (the second dividend); and co-benefits of resilience measures beyond just disaster risk (the third dividend), such as flood embankments in Bangladesh that double as roads, or wetlands in Colombo that reduce urban heat extremes.