The main focus of this report is the role of insurance within a disaster risk financing framework. A general introduction to insurance is provided in Section 2. A key requirement of insurance is the need to be able to calculate the level of risk at a given location. In the insurance sector, this is typically done using a catastrophe (cat) model. Sections 3 and 4 describe cat models in general, and for flood specifically. Section 5 provides an overview of the current status of the insurance market in the DMCs. The various forms of financial assistance that can be considered, and possible ways of approaching a decision as to which should be used are discussed in more detail in the concluding Section 6.
Consultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project.
This document dated May 2022 is provided for the ADB regional project 52014-001.