2018-灾害风险金融分析（英文版）-3mb

Disaster Risk Finance Analytics Summary

Core Content

Disaster Risk Finance (DRF) Analytics is a program under the World Bank Group (WBG) that supports vulnerable countries in managing the financial impacts of natural disasters and climate shocks. The program focuses on providing quantitative financial and economic information and tools to enable risk-informed decision-making, thereby enhancing financial resilience.

Main Objectives

• Strengthen financial management of disaster risk through data-driven analysis.
• Bridge the gap between disaster risk data and financial protection solutions.
• Empower governments, donors, and development partners with objective analytics to make informed decisions.
• Promote the use of innovative risk identification, assessment, and financing tools.

Key Information

• Rising Financial Losses: Natural disaster-related financial losses are increasing, particularly affecting developing countries and low-income populations.
• Program Focus: The DRF Analytics function is part of the Disaster Risk Finance and Insurance Program (DRFIP), which is a joint initiative of the WBG's Finance & Markets Global Practice and GFDRR.
• Customized Tools: DRF Analytics works with countries to design and develop tailored analytic tools and information systems that fit their specific contexts.
• Methodologies: The program uses proven economic and statistical methodologies to evaluate disaster risk financing strategies and support decision-making.
• Partnerships: The program collaborates with the European Union and GFDRR to enhance the capacity of governments to manage disaster risk through sound financial analysis.

Tools and Approaches

DRF Analytics offers a range of tools and approaches to support financial resilience, including:

• Fiscal Cost Analysis: Assessing potential fiscal costs and gaps from natural disasters.
• Risk Transfer Instruments: Structuring insurance products to meet financial protection needs.
• Risk Retention Evaluation: Choosing or combining risk retention mechanisms (e.g., reserve funds) with risk transfer (e.g., insurance).
• Subsidized Insurance Programs: Evaluating the cost and scalability of such programs.
• Reinsurance Proposals: Assessing private sector reinsurance options.
• Risk Pooling: Evaluating the cost savings from pooling sovereign or subnational risk.
• Capital Requirements: Determining the capital needed for establishing and maintaining catastrophic risk pools.

How We Support Governments

• Capacity Building: DRF Analytics delivers customized tools and information as part of a broader capacity building package.
• Program Design: Assisting in the design of sovereign and agriculture insurance programs, as well as scalable social protection mechanisms.
• Policy Dialogue: Engaging in policy discussions to promote good practices in disaster risk finance and insurance.

Impact and Case Studies

Case Study: Philippines Sovereign DRF Strategy

• In 2015, DRF Analytics supported the adoption of a DRF and Insurance strategy.
• The program helped the Government of the Philippines secure a US$500 million contingent line of credit (CAT DDO) to manage disaster financial impacts.
• It also supports the development of sub-national insurance programs through risk data aggregation and financial analysis.

Case Study: Livestock Insurance in Kenya

• DRF Analytics supported the design of a livestock insurance program that covers 14,000 farmers.
• In 2017, GBP1.7 million was paid to 12,000 pastoralists to compensate for drought losses.
• The program provided key insights into the design of the Kenya Livestock Insurance Program through quantitative tools.

Partnerships

• In December 2015, the European Union partnered with the WBG's DRF and Insurance Program through GFDRR to enhance disaster risk finance capacity in several countries.
• This partnership aims to catalyze the adoption of innovative risk tools within development policy frameworks.

Program Leadership

• Olivier Mahul: Global Lead, Disaster Risk Finance Program Manager, DRFIP.
• Naomi Cooney: Financial Sector Specialist, DRFIP.

Conclusion

DRF Analytics plays a crucial role in helping countries build financial resilience against natural disasters and climate risks. By providing high-quality data, tools, and methodologies, the program supports informed decision-making, enhances risk management, and promotes sustainable development.