世界银行-推进多米尼克的灾害风险融资（英）-2023-65页_3mb

Summary of Disaster Risk Financing Strategy for Dominica

This report analyzes Dominica's vulnerability to natural hazards and provides recommendations for a comprehensive disaster risk financing (DRF) strategy. Dominica faces high risks from hurricanes, earthquakes, and floods, with average annual losses estimated at $30 million (EC$81 million), or 5.1% of GDP. A major hurricane event with a 100-year return period could cause losses of over $1.189 billion, equivalent to 204% of GDP.

Key Findings

• Dominica's fiscal risks are driven by hydrometeorological events, with a 1% annual probability of exceeding $455 million in contingent liabilities.
• Public asset management is underdeveloped, and data collection for disaster impacts is inconsistent.
• Current DRF tools, such as the Vulnerability, Risk, and Resilience Fund (VRRF) and Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), are partially utilized but require optimization.
• Legislative frameworks for disaster risk management and public financial management (PFM) are insufficient and need updates to incorporate DRF provisions.

Recommendations

Sovereign Protection (Short-Term)

• Institutionalize a system for collecting and reporting loss and damage data for all event severities.
• Track disaster expenditure through the budget and improve public disclosure.
• Enact comprehensive legislation for disaster risk management, PFM, and fiscal responsibility to include DRF requirements.
• Develop clear guidelines for VRRF usage, including capitalization targets aligned with annual average losses.
• Access contingent lines of credit to cover high-severity events.
• Optimize sovereign parametric insurance with CCRIF SPC.
• Strengthen capacity in PFM, damage assessment, and post-disaster needs assessments.
• Adopt a National Strategy for DRF and institutionalize disaster-responsive budget execution guidelines.
• Implement a risk-based asset management system with a comprehensive inventory of public fixed assets.

Commercial Insurance (Short-Term and Medium-Term)

• Enhance transparency and consumer protection in the insurance sector.
• Conduct government campaigns to promote insurance understanding.
• Assess compliance with Insurance Core Principles (ICP).
• Evaluate barriers to inclusive and sector-specific insurance.

The report emphasizes the need for a layered DRF approach to minimize fiscal risks, improve resilience, and ensure cost-effective responses to disasters.