2015年-世界发展银行全球_Fiji___Disaster_Risk_Financing_and_Insurance_56页_8mb

Summary of FJI Country Note on Disaster Risk Financing and Insurance

Core Content

This document provides an overview of disaster risk financing and insurance (DRFI) practices in Fiji, highlighting the country's exposure to natural disasters, existing financial tools, and opportunities for improvement in disaster preparedness and response.

Key Natural Disasters and Economic Impact

Fiji is highly exposed to natural disasters, particularly tropical cyclones and earthquakes. The country has experienced significant economic impacts from these events:

• In 2012, three major events caused F$146 million (US$78 million) in damage, including:
  • Severe flooding in January and March.
  • Tropical Cyclone (TC) Evan in December.
• The 2012 floods alone caused F$71 million (US$38 million) in damage.
• TC Evan caused F$200 million (US$108 million) in direct losses and F$135 million (US$73 million) in recovery and reconstruction needs.
• Over the next 50 years, Fiji has a 50% chance of experiencing losses exceeding F$1,500 million (US$806 million) and a 10% chance of losses exceeding F$3 billion (US$1.6 billion).

Financial Resilience and DRFI Instruments

Fiji has implemented several DRFI instruments to enhance financial resilience:

• A finance manual for post-disaster budget execution was developed by the Ministry of Finance.
• The National Disaster Relief and Rehabilitation Fund (NDRRF), also known as the Prime Minister's Fund, has a F$2.2 million (US$1.17 million) balance as of October 2013.
• An annual appropriation of F$2 million (US$1 million) is provided to the Rehabilitation Fund.
• The government has F$3 million (US$1.6 million) in DRFI instruments available for disaster response.
• In 2012, F$7 million (US$3.7 million) was reallocated from the national budget to support TC Evan response, equivalent to 0.3% of total budget.
• In 2013, an additional F$17 million (US$9.1 million) was reallocated for housing rehabilitation, equivalent to 0.7% of total expenditures.

Post-Disaster Budget Mobilization and Execution

Fiji employs both ex-ante and ex-post financial mechanisms to manage disaster-related costs:

• Ex-ante tools include:
  • Contingency budget.
  • Emergency fund.
  • Contingent credit.
  • Sovereign (parametric) catastrophe insurance.
• Ex-post tools include:
  • Budget reallocation.
  • Flash fund appeals.
  • Tax incentives.
  • Donor assistance.

The process for post-disaster budget mobilization involves:

• A relocation of staff from the Ministry of Finance to the NDMO to expedite fund execution.
• Clause 32 and 33 of the Finance Instructions 2010 outline emergency procurement and immediate relief assistance.
• The finance manual sets out a step-by-step process, including verification procedures, authorization processes, and a template for acquittals.
• If expenditures exceed 67% of the emergency budget, the process begins to seek additional assistance.

Insurance of Public Assets

Fiji lacks a property insurance program for key public and infrastructure assets, including roads and bridges. This gap may lead to delays in reconstruction following major disasters. While some ministries may insure individual assets, there is no comprehensive program in place.

Institutional Frameworks and Strategies

Fiji is part of several regional and national frameworks for disaster risk reduction and management, including:

• Hyogo Framework for Action (HFA) 2005-2015.
• Regional Framework for Action (RFA) 2005-2015.
• Fiji National Disaster Management Plan (1995).
• Cyclone Support Plan (1997).
• Fiji National Disaster Management Act (1998).

The World Bank has developed a three-tiered disaster risk financing strategy:

1. Self-retention: Contingency budget and national reserves for small, recurrent disasters.
2. Contingent credit mechanism: For less frequent but more severe events.
3. Disaster risk transfer: Through insurance to cover major natural disasters.

Options for Consideration

To improve financial resilience and disaster response, the following options are suggested:

1. Finalize the finance manual developed by the Ministry of Finance for post-disaster procedures and seek cabinet approval.
2. Develop an overarching DRFI strategy that includes risk transfer mechanisms.
3. Identify critical public assets to establish an insurance program for them.

Conclusion

Fiji has made progress in managing disaster risks through financial tools and institutional frameworks, but there are still gaps in public asset insurance and comprehensive disaster risk financing strategies. The country is encouraged to adopt a more integrated and proactive approach to enhance financial resilience and disaster preparedness.