Workshop on Disaster Risk Financing, Insurance and Risk Transfer

To focus on Investment in DRR and Disaster Risk Coverage for All

Natural disasters generate significant fiscal risks, severely impacting developing countries.  A robust disaster risk management programme is essential to strengthen their financial resilience.

“Work towards risk coverage for all - starting from poor households to SMEs to multi-national corporations to nation states,” says the second point in the Prime Minister’s ten-point agenda on Disaster Risk Reduction, announced in his inaugural speech at the Asian Ministerial Conference on Disaster Risk Reduction (AMCDRR) 2016. Also, the third priority in the Sendai Framework for Disaster Risk Reduction 2015-2030 focuses on  “Investing in Disaster Risk Reduction (DRR) for Resilience”.

To discuss the issues and challenges faced by different stakeholders in assessing insurance along with the capacity gap in undertaking such initiatives, National Institute of Disaster Management (NIDM), in partnership with Insurance Institute of India (III), organised a workshop on Disaster Risk Financing, Insurance and Risk Transfer on February 13, 2020, in Mumbai, Maharashtra.

The workshop aimed to impart the understanding of disaster risk financing and creation of action plans for implementation by state governments, local authorities and insurance companies.

The workshop is a precursor to the National Platform for Disaster Risk Reduction (NPDRR), that is scheduled to be held in New Delhi in May 2020. NPDRR aims at evolving a participatory process of decision making in disaster management with the active involvement of the Central & State Governments and various stakeholders.

In his video message, Dr. P.K. Mishra, the Principal Secretary to the Prime Minister, highlighted the importance of insurance not only for financial resilience but also as a tool for mitigating the impact of disasters.

The workshop was attended by nodal officers for Disaster Management from concerned Central Ministries / Departments, representatives from Government Organisations, State Disaster Management Authorities, Insurance and  Re-Insurance companies, Insurance experts, World Bank, UN Institutions, Financial Institutions and organisations working on Catastrophe Financial Resilience from across the country.

On the occasion, reports on 'Property Insurance in New & Existing Housing'  and ‘Challenges in Insuring Flood-Prone Areas of Mumbai’ were also released.

Technical sessions

ü  Disaster Risk finance and Insurance for the option of Risk Transfer;

ü  Challenges in Implementing Insurance for building Disaster Risk Resilience; and

ü  State Government Perspectives and Designing Action Plan for the Future.

Note (Added later): The 3rd meeting of the NPDRR stands postponed. It may be held in October 2020 after the monsoon season.

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