ReliefWeb

What we do

The Disaster Risk Finance (DRF), part of the Disaster Risk Finance and Insurance Program (DRFIP), a ims to strengthen the financial management of disaster risk by providing quantitative financial and economic information & tools for decision-making.

Analytics bridges the gap between disaster risk data and risk-informed decision making. Catastrophe risk data and information lay the foundation for financial protection solutions against natural disasters. This needs to be aggregated, refined and analyzed in order to inform this decision making. Analytics translate this technical information into useable information to facilitate decision making.

Governments, donors and development partners are increasingly in need of high quality analytics to proactively manage the financial costs of disasters. Objective analytics empowers stakeholders to take risk-informed financial protection decisions based on sound financial and economic analysis.

Tools and Approaches

Some of the way we help governments or development partners….

● Analyze the potential fiscal costs and fiscal gaps from natural disasters

● Structure risk transfer / insurance products to best meet financial protection needs

● Choose between or combine different risk retention (e.g. a reserve fund) and risk transfer (e.g. insurance) instruments

● Evaluate the cost of a subsidized insurance program or scalable social protection program; (and how this might change with alternative coverage or product design)

● Evaluate reinsurance proposals from the private sector

● Evaluate the potential cost savings from pooling sovereign or subnational risk

● Evaluate the capital requirement for establishment and/or maintenance of a catastrophic risk pool