2013年-世界发展银行全球_Colombia___Implementing_a_Collective_Standardized_Approach_to_Catastrophe_Insurance_of_Public_Buildings_5页_851kb

Summary of Insurance of Public Buildings in Colombia

Core Content

The document outlines the Government of Colombia's (GoC) efforts to enhance the insurance coverage of public buildings and assets through a collective, standardized approach. It highlights the importance of disaster risk financing and insurance (DRFI) in improving the country's financial resilience against natural disasters, which are frequent and costly in Colombia.

Main Problem

Public entities in Colombia are legally required to insure their assets or retain them self, but the law does not define "actual value" or provide technical guidelines for insurance purchases. As a result, many public assets were underinsured, and the GoC faced significant fiscal risks due to the high economic impact of natural disasters.

Key Highlights

• The World Bank has supported the GoC since 2012 in developing an integrated DRFI strategy.
• The strategy includes four priority areas, with a focus on improving insurance requirements for public buildings.
• A pilot program was initiated in 2012, covering 22 central government entities and 349 buildings.
• The goal is to standardize insurance terms and conditions across all government entities while ensuring tailored coverage.

Proposed Solution

1. Improved Information: The GoC needs to collect and maintain accurate data on public buildings and their insurance policies to reduce uncertainty in pricing and improve terms.
2. Risk Pooling: A collective approach allows for the pooling of risk into a diversified portfolio, reducing costs and increasing bargaining power with insurers.
3. Standardized Terms and Conditions: Based on international best practices, the GoC developed standard insurance policies for public buildings, including all-risk coverage and clear addenda.
4. Legal and Technical Analysis: The GoC conducted a legal and technical review of the insurance market and intermediaries to ensure compliance and better risk transfer.
5. Pilot Implementation: A pilot program was launched to test the collective approach, with the support of the Colombia Compra Eficiente (CCE) agency.

Key Recommendations

• Data Collection: Develop a comprehensive database of public assets and their insurance policies, including both current and lapsed policies.
• Standardization: Ensure that insurance terms and conditions are standardized across all institutions and aligned with international best practices.
• Market Engagement: Identify and construct technical and legal options to approach the insurance market, leveraging the government's critical mass for better negotiation.
• Implementation and Monitoring: Implement the chosen approach through a pilot program, and actively monitor and manage the insurance policies and claims process.

Lessons Learned

• A collective and standardized approach can significantly improve the quality and affordability of insurance for public buildings.
• Legal and institutional assessments are essential to identify the most effective strategies for risk transfer.
• Data quality is critical for accurate underwriting and pricing.
• The use of framework agreements and intermediaries can help in standardizing the insurance process and improving efficiency.
• The GoC's experience can serve as a model for other Latin American countries seeking to improve their disaster risk financing and insurance systems.

Further Information

• DRFI Program Website: worldbank.org/fpd/drfi
• Relevant Documents:
  • Improving the Assessment of Disaster Risks to Strengthen Financial Resilience, 2012
  • Analysis of Disaster Risk Management in Colombia, 2012
  • Fiscal Risk Assessment of Contingent Liabilities Associated with Natural Disasters: The Colombian Experience, 2011

Contact Information

• Olivier Mahul: Program Manager, Disaster Risk Financing & Insurance Program, FCMNB and GFDRR, The World Bank, omahul@worldbank.org
• Jose Angel Villalobos: Senior Insurance Specialist, Disaster Risk Financing & Insurance Program, FCMNB and GFDRR, The World Bank, jvillalobos@worldbank.org
• Benjamin Fox: Financial Sector Specialist, Disaster Risk Financing & Insurance Program, FCMNB and GFDRR, The World Bank, bfox@worldbank.org

Glossary