Poverty Reduction Cooperation Fund

TA 6284: Development of Catastrophe Risk Insurance - Regional

Financed by Poverty Reduction Cooperation Fund

Project Summary

This small scale TA will help expand the use of catastrophe risk insurance to mitigate the fiscal and economic volatility and social impact arising from natural disasters by assisting ADB and DMC decision makers to develop suitable policies, mechanisms and schemes for: (i) pre-funding the reconstruction of public and private assets in DMCs; (ii) facilitating the transfer of financial risks associated with natural perils from the Government and households/private businesses to domestic and international insurance and capital markets; and (iii) introducing related insurance coverage for lower income groups.

This TA will have the following components:

1. Review of data availability on catastrophe risk vulnerability
2. Identification of impediments for the expansion of private insurance capacity for catastrophe risk
3. Development of government catastrophe (re)insurance schemes
4. Development of risk management and mitigation approaches to manage exposures by small businesses and low-income households and communities

• Consultant's Report