eugene n. gurenko, ph.d., cpcu, are lead insurance specialist · world bank group oecd conference...

21
World Bank Group World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe Insurance Programs in Developing Countries: Key Challenges and Opportunities Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist February 26 -27, 2007

Upload: others

Post on 19-Mar-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

OE

CD

Co

nfe

ren

ce o

n F

inan

cial

Man

agem

ent

of

Lar

ge-

Sca

le

Cat

astr

op

hes

Hyd

erab

ad, I

nd

ia

Dev

elo

pin

g C

atas

tro

ph

e In

sura

nce

Pro

gra

ms

in

Dev

elo

pin

g C

ou

ntr

ies:

Key

Ch

alle

ng

es a

nd

Op

po

rtu

nit

ies

Eug

ene

N. G

uren

ko, P

h.D

., C

PC

U, A

Re

Lead

Insu

ranc

e S

peci

alis

t

Feb

ruar

y 26

-27

, 200

7

Page 2: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ag

end

a

Cat

astr

op

he

insu

ran

ce p

rog

ram

s in

dev

elo

pin

g c

ou

ntr

ies

A c

ase

stu

dy

of

the

Car

ibb

ean

Cat

astr

op

he

Insu

ran

ce

Fac

ility

Ap

plic

abili

ty o

f th

e C

CIF

exp

erie

nce

to

oth

er c

ou

ntr

ies.

Key

po

licy

issu

es a

nd

rec

om

men

dat

ion

s

Page 3: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ag

end

a

Cat

astr

op

he

insu

ran

ce p

rog

ram

s in

dev

elo

pin

g c

ou

ntr

ies

A c

ase

stu

dy

of

the

Car

ibb

ean

Cat

astr

op

he

Insu

ran

ce

Fac

ility

Ap

plic

abili

ty o

f th

e C

CIF

exp

erie

nce

to

oth

er c

ou

ntr

ies.

Key

po

licy

issu

es a

nd

rec

om

men

dat

ion

s

Page 4: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Maj

or

sou

rces

of

dis

aste

r fi

nan

ce

0

10

00

0

20

00

0

30

00

0

40

00

0

50

00

0

60

00

0

70

00

0

80

00

0

$ m

m

19

87

-1

98

9a

vera

ge

19

91

19

93

19

95

19

97

19

99

20

01

20

03

Fin

anc

ing

of

cata

str

op

he

lo

sse

s in

de

ve

lop

ing

co

un

trie

s

Em

erg

en

cy

re

lief

aid

Ins

ure

d l

os

sR

eta

ine

d l

os

s

•On

ave

rag

e, 9

2,6%

of

eco

no

mic

loss

was

ret

ain

ed b

y d

evel

op

ing

co

un

trie

s.

Sou

rces

: OE

CD

, Mun

ich

Re

•Los

s re

tent

ion

was

on

aver

age

$31

bnpe

r ye

ar

•Los

s re

tent

ion

has

been

high

ly v

aria

ble

–50

%

coef

ficie

nt o

f var

iatio

n

Cat

astr

ophe

insu

ranc

e in

dev

elop

ing

coun

trie

s

Page 5: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Cat

astr

op

he

insu

ran

ce p

enet

rati

on

in d

evel

op

ing

co

un

trie

s (%

dw

ellin

gs

cove

red

)

% h

om

es c

ove

red

Indi

a –

unde

r 0.

3%

Phi

lippi

nes

–0.

3%

Iran

–un

der

0.05

%

Rom

ania

–un

der

4% Bul

garia

–un

der

3% Chi

na –

unde

r 0.

5%

Tur

key

–18

%

051015

020

040

060

080

01,

000

1,20

0GD

P/ C

apita

$US

Premium/ Capita $US

Vie

tnam

Indi

aIn

done

sia

Chi

na

Phili

ppin

es

Glo

bal I

ndic

ator

PER

SON

AL

INSU

RA

NC

E P

RE

MIU

M =

1.3

*(G

DP/

1000

)^2

PER

SON

AL

CA

T I

NSU

RA

NC

E P

RE

MIU

M =

0.1

*PE

RSO

NA

L I

NSU

RA

NC

E P

RE

MIU

M

Cat

astr

ophe

insu

ranc

e in

dev

elop

ing

coun

trie

s

Page 6: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Key

Ch

alle

ng

es:

Des

ign

Sta

ge

Lac

k o

f in

sura

nce

cu

ltu

re a

nd

ris

k aw

aren

ess.

Lo

w in

com

e o

f p

op

ula

tio

n.

An

(al

mo

st)

no

n-e

xist

ent

fun

ctio

n o

f fo

rmal

inte

gra

ted

cata

stro

ph

e ri

sk m

anag

emen

t in

clu

sive

of

risk

red

uct

ion

an

d

risk

fin

anci

ng

.

Lac

k o

f ri

sk m

anag

emen

t cu

ltu

re a

nd

insu

ran

ce e

xper

tise

in

rele

van

t g

ove

rnm

ent

inst

itu

tio

ns.

Po

litic

al r

esis

tan

ce t

o s

wit

ch f

rom

dis

cret

ion

al g

ove

rnm

ent

po

st-d

isas

ter

assi

stan

ce t

o c

on

trac

tual

(in

sura

nce

).

Lac

k o

f co

nfi

den

ce o

n t

he

par

t o

f th

e in

sura

nce

sec

tor

and

civi

l so

ciet

y in

go

vern

men

t’s

abili

ty t

o c

reat

e a

fin

anci

ally

effi

cien

t an

d t

ran

spar

ent

insu

ran

ce p

rog

ram

.

En

tren

ched

or

oft

en d

iver

gin

g e

con

om

ic in

tere

sts

Dis

ince

nti

ves

to in

sure

pro

vid

ed b

y u

nco

nd

itio

nal

po

st-

dis

aste

r d

on

or

aid

.

Cat

astr

ophe

insu

ranc

e pr

ogra

ms

in d

evel

opin

g co

untr

ies

Page 7: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Key

Ch

alle

ng

es:

Imp

lem

enta

tio

n S

tag

e (b

ased

on

exp

erie

nce

of

TC

IP, R

CIP

, CC

IF, G

CR

F)

Co

un

try

leve

l:

Pas

sin

g r

elev

ant

insu

ran

ce le

gis

lati

on

.

Rai

sin

g in

sura

nce

an

d r

isk

awar

enes

s o

f p

op

ula

tio

n.

En

suri

ng

th

e su

pp

ort

an

d p

arti

cip

atio

n o

f in

sura

nce

/rei

nsu

ran

ce

ind

ust

ry in

th

e o

per

atio

n o

f a

sch

eme.

Mai

nta

inin

g a

deq

uat

e g

ove

rnm

ent

com

mit

men

t to

th

e p

rog

ram

.

Pro

gra

m-l

evel

Saf

egu

ard

ing

th

e su

rplu

s ac

cum

ula

ted

in t

he

po

ol f

rom

“p

olit

ical

hija

ckin

g”

and

en

suri

ng

it is

wel

l man

aged

.

Pu

ttin

g in

pla

ce a

nd

imp

lem

enti

ng

an

ad

equ

ate

risk

man

agem

ent

fram

ewo

rk f

or

the

pro

gra

m (

incl

ud

ing

acc

ess

to r

ein

sura

nce

).

En

suri

ng

ad

equ

ate

pri

cin

g o

f ri

sk c

ove

rag

e.

Cat

astr

ophe

insu

ranc

e pr

ogra

ms

in d

evel

opin

g co

untr

ies

Page 8: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ag

end

a

Cat

astr

op

he

insu

ran

ce p

rog

ram

s in

dev

elo

pin

g c

ou

ntr

ies

A c

ase

stu

dy

of

the

Car

ibb

ean

Cat

astr

op

he

Insu

ran

ce

Fac

ility

Ap

plic

abili

ty o

f th

e C

CIF

exp

erie

nce

to

oth

er c

ou

ntr

ies.

Key

po

licy

issu

es a

nd

rec

om

men

dat

ion

s

Page 9: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

CC

RIF

: A

n In

sura

nce

Veh

icle

Res

erve

s

Rei

nsu

ran

ce/A

RT

(Pu

rch

ased

on

inte

rnat

ion

al

fin

anci

al m

arke

ts)

Co

un

try

2

Co

un

try

3

Co

un

try

1

Co

un

try

4

Co

un

try

5

Co

un

try

6

Co

un

try

7

Pre

miu

mP

ayo

ut

Insu

ran

ce

Pay

ou

t

Insu

ran

ce

Pre

miu

m

Init

ial d

on

or

con

trib

uti

on

Su

rplu

s fr

om

gro

wth

CC

RIF

will

pro

vid

e th

e C

arib

bea

n g

ove

rnm

ents

wit

h p

aram

etri

c ca

tast

rop

he

insu

ran

ce c

ove

rag

e, t

hu

s en

ablin

g t

hem

to

ove

rco

me

a ty

pic

al li

qu

idit

y cr

un

ch

in t

he

afte

rmat

h o

f a

dis

aste

r.

A c

ase

stud

y of

the

Car

ibbe

an In

sura

nce

Fac

iliity

Sou

rce:

Fra

ncis

Ghe

squi

re, W

orld

Ban

k, 2

006

Page 10: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

CC

RIF

: Org

aniz

atio

nal S

truc

ture

Bo

ard

of

Dir

ecto

r(W

B/D

on

or/

Clie

nt)

Ass

etM

anag

er(R

eser

ves)

Cap

tive

Man

ager

Res

po

nsi

ble

fo

r A

dm

inis

trat

ive/

Fid

uci

ary/

L

egal

Asp

ects

Fac

ility

S

up

ervi

sor

(Ris

k M

anag

er)

Rei

nsu

ran

ce/A

RT

(Pu

rch

ased

on

inte

rnat

ion

al

fin

anci

al m

arke

ts)

A c

ase

stud

y of

the

Car

ibbe

an In

sura

nce

Fac

iliity

Sou

rce:

Fra

ncis

Ghe

squi

re, W

orld

Ban

k, 2

006

Page 11: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Div

ersi

ficat

ion

bene

fits

from

reg

iona

l ris

k po

olin

g

Prem

ium

Cos

t as

Mul

tiple

of A

vera

ge A

nnua

l Los

s

012345678

G r e n a d a

D o m i n i c a

S t . K i t t s a n dN e v i s

S t . V i n c e n ta n d t h e

G r e n a d i n e s

S a i n t L u c i a

A n t i g u a a n dB a r b u d a

B a r b a d o s

J a m a i c a

AAL

Indi

vidua

l

CCRI

F 0

CCRI

F 40

Sou

rce:

Fra

ncis

Ghe

squi

re, W

orld

Ban

k, 2

006

A c

ase

stud

y of

the

Car

ibbe

an In

sura

nce

Fac

ility

Page 12: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Key

ch

alle

ng

es f

aced

by

the

CC

IF:

Des

ign

sta

ge

Mas

terin

g su

ppor

t for

the

proj

ect w

ithin

Wor

ld B

ank

Inte

rnal

rev

iew

s, m

anag

emen

t sup

port

, len

ding

in s

uppo

rt o

f

prem

ium

.

Ens

urin

g co

untr

ies’

com

mitm

ent a

nd p

artic

ipat

ion

in th

e

prog

ram

prem

ium

pay

men

t, te

rms

of c

over

age,

ow

ners

hip

of s

urpl

us, a

nd

term

inat

ion

fees

.

Ens

urin

g do

nor

supp

ort t

o th

e pr

ogra

mfe

asib

ility

stu

dies

, pro

gram

cap

italiz

atio

n an

d w

orki

ng c

apita

l

Sec

urin

g su

ppor

t of t

he g

loba

l rei

nsur

ers

Pro

gram

man

agem

ent,

risk

tran

sfer

A c

ase

stud

y of

the

Car

ibbe

an In

sura

nce

Fac

ility

Page 13: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Key

ch

alle

ng

es f

aced

by

the

CC

IF:

Imp

lem

enta

tio

n s

tag

e

Mai

ntai

ning

cou

ntrie

s’ in

tere

st a

nd p

artic

ipat

ion

in th

e pr

ogra

m.

Fin

ding

the

right

bal

ance

bet

wee

n pr

ovid

ing

affo

rdab

le c

over

age

and

ensu

ring

finan

cial

sus

tana

bilit

yof

the

prog

ram

.

Impl

emen

ting

adeq

uate

ris

k m

anag

emen

t.R

isk

rete

ntio

n, r

isk

tran

sfer

, sur

viva

l pro

babi

lity.

Ens

urin

g co

ntin

uous

sup

port

of r

eins

urer

s.

Ach

ievi

ng a

sou

nd fi

nanc

ial a

nd o

pera

tiona

l man

agem

ent o

f the

faci

lity.

A c

ase

stud

y of

the

Car

ibbe

an In

sura

nce

Fac

ility

Page 14: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ag

end

a

Cat

astr

op

he

insu

ran

ce p

rog

ram

s in

dev

elo

pin

g c

ou

ntr

ies

A c

ase

stu

dy

of

the

Car

ibb

ean

Cat

astr

op

he

Insu

ran

ce

Fac

ility

Ap

plic

abili

ty o

f th

e C

CIF

exp

erie

nce

to

oth

er c

ou

ntr

ies.

Key

po

licy

issu

es a

nd

rec

om

men

dat

ion

s

Page 15: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Mai

nst

ream

ing

CC

RIF

The

con

cept

of r

egio

nal r

isk

pool

ing

can

be a

pplie

d to

oth

er

part

s of

the

wor

ld –

the

Pac

ific

Isla

nds,

for

inst

ance

;

Indi

vidu

al c

ount

ry r

isk

asse

ssm

ents

sho

uld

be c

arrie

d ou

t firs

t.

Can

CC

RIF

be

exte

nded

to c

over

oth

er la

rger

dev

elop

ing

coun

trie

s?G

over

nanc

e is

sues

.

Cap

italiz

atio

n/si

ze o

f ris

ks c

over

ed.

Use

of p

ublic

sub

sidi

es.

App

licab

ility

of C

CR

IF to

oth

er c

ount

ries

Page 16: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ben

efit

s o

f g

lob

al r

isk

po

olin

g:

Glo

bal

Cat

astr

op

he

Insu

ran

ce F

acili

ty

•27

cou

ntr

ies

•2 p

erils

0.00

%

0.50

%

1.00

%

1.50

%

2.00

%

2.50

%

3.00

%

3.50

%

4.00

%

4.50

%

Co

un

trie

sR

egio

ns

Po

rtfo

lio

Premium/Insured Limit

App

licab

ility

of C

CR

IF to

oth

er c

ount

ries

Page 17: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ag

end

a

Cat

astr

op

he

insu

ran

ce p

rog

ram

s in

dev

elo

pin

g c

ou

ntr

ies

A c

ase

stu

dy

of

the

Car

ibb

ean

Cat

astr

op

he

Insu

ran

ce

Fac

ility

Ap

plic

abili

ty o

f th

e C

CIF

exp

erie

nce

to

oth

er c

ou

ntr

ies.

Key

po

licy

issu

es a

nd

rec

om

men

dat

ion

s

Page 18: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Lo

w c

ost

of

IBR

D c

apit

al

Pu

blic

p

olic

ies

Pub

lic r

isk

awar

enes

s,

educ

atio

n ca

mpa

igns

Sov

erei

gn c

atas

trop

he

risk

cove

rage

(M

exic

o bo

nd, C

arib

bean

Cat

F

acili

ty, G

CIF

)

Mak

ing

insu

ranc

e co

mpu

lsor

y or

se

mi-c

ompu

lsor

y (T

urke

y/R

oman

ia/C

olum

bia/

Fra

nce

);

Cre

atio

n of

nat

iona

l poo

ls;

Dra

win

g a

clea

r lin

e be

twee

n pu

blic

and

priv

ate

liabi

litie

s (S

pain

)

En

ablin

g p

ub

lic p

olic

ies

for

cata

stro

ph

e in

sura

nce

Mak

ing

cata

stro

phe

rein

sura

nce

capa

city

mor

e af

ford

able

for

deve

lopi

ng c

ount

ries

thro

ugh

(i)

glob

al m

utua

lisat

ion

of r

isk;

(ii)

pa

rtia

l ris

k re

tent

ion;

(iii

) pr

emiu

m

subs

idie

s to

poo

rest

nat

ions

; (iv

) su

bsid

ies

for

mar

ket i

nfra

stru

ctur

e an

d pr

oduc

t dev

elop

men

t

Key

pol

icy

issu

es a

nd r

ecom

men

datio

ns

Page 19: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Fin

din

g t

he

rig

ht

fit

bet

wee

n p

ub

lic a

nd

pri

vate

ris

k fi

nan

cin

g

in c

ase

of

nat

ura

l dis

aste

rs

Loss

Exceedance probability

p

L

p

L

Reso

urce

gap

Insu

red

Insu

ranc

e

Re-

insu

ranc

e

Cap

ital m

arke

t

Don

ors

Gov

ernm

ents

M

FIs

Avo

idin

g t

he

dis

tort

ion

of

pri

vate

ris

k m

arke

ts s

ho

uld

be

the

ove

rarc

hin

g

con

cern

of

afo

rem

enti

on

ed p

ub

lic p

olic

ies

Key

pol

icy

issu

es a

nd r

ecom

men

datio

ns

Page 20: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Ach

ievi

ng

co

mp

limen

tari

ty b

etw

een

do

no

r su

pp

ort

ed

pro

gra

ms

in c

atas

tro

ph

e ri

sk in

sura

nce

an

d t

he

mar

ket

Avo

id th

e di

stor

tion

of r

isk

mar

kets

by

ensu

ring

that

don

or

supp

orte

d ca

tast

roph

e in

sura

nce

prog

ram

s:F

ollo

w (

not l

ead)

glo

bal r

eins

urer

son

pric

e;

Dea

l with

new

mar

ket s

egm

ents

(go

vern

men

ts, o

r de

man

d fr

om

hous

ehol

ds/S

ME

sdu

e to

gov

ernm

ent-

polic

y ac

tions

; new

prod

ucts

–e.

g., 3

yea

r co

ntra

cts)

.

Pro

vide

dire

ct p

rem

ium

sub

sidy

(no

t cap

ital)

ON

LY to

the

poor

est

coun

trie

s/so

cial

str

ata

Lim

it su

bsid

ies

to p

rodu

ct a

nd m

arke

t inf

rast

ruct

ure

deve

lopm

ent

Adh

ere

to c

ompe

titiv

e bi

ddin

g on

ALL

(pr

emiu

m a

nd p

rodu

ct

deve

lopm

ent)

sub

sidi

es p

rovi

ded

by d

onor

s to

mar

ket –

“NO

mon

opol

y lic

ense

s!”

See

k be

tter

coun

try

com

mitm

ent t

o ex

-ant

e ris

k fin

anci

ng in

prov

idin

g po

st-d

isas

ter

dono

r ai

d.

Key

pol

icy

issu

es a

nd r

ecom

men

datio

ns

Page 21: Eugene N. Gurenko, Ph.D., CPCU, ARe Lead Insurance Specialist · World Bank Group OECD Conference on Financial Management of Large-Scale Catastrophes Hyderabad, India Developing Catastrophe

Wor

ld B

ank

Gro

upW

orld

Ban

k G

roup

Co

ncl

usi

on

s

Cat

astr

ophe

ris

k po

olin

g at

the

natio

nal,

regi

onal

and

glo

bal

leve

l in

deve

lopi

ng c

ount

ries

resu

lts in

con

side

rabl

e

dive

rsifi

catio

n be

nefit

s th

at c

an r

esul

t in

impr

oved

affo

rdab

ility

of in

sura

nce

cove

rage

.

Cat

astr

ophe

ris

k fin

anci

ng w

ith p

rivat

e se

ctor

par

ticip

atio

n

shou

ld b

ecom

e an

impo

rtan

t par

t of d

onor

dis

aste

r-re

late

d ai

d

prog

ram

s.

Cre

atio

n of

PP

Ps

in r

isk

finan

cing

sho

uld

com

plem

ent r

athe

r

than

dis

tort

priv

ate

risk

mar

kets

.

Dev

elop

men

t of i

nstit

utio

nal c

atas

trop

he r

isk

man

agem

ent

capa

city

at t

he c

ount

ry le

vel s

houl

d in

clud

e a

risk

finan

cing

func

tion.

Key

pol

icy

issu

es a

nd r

ecom

men

datio

ns