Publication: Sovereign Catastrophe Risk Pools: World Bank Technical Contribution to the G20
Date
2017
ISSN
Published
2017
Author(s)
World Bank Group
Abstract
More than 1 billion people have lifted
themselves out of poverty in the past 15 years, but climate
and disaster risks threaten these achievements. Global asset
losses from disasters are now reaching an average of more
than US$300 billion a year. A recent World Bank report finds
that the impacts of disasters on well-being are equivalent
to a US$520 billion drop in consumption (60 percent more
than the asset losses usually reported) and force some 26
million people into poverty every year (Hallegatte et al.,
2017). Moreover, countries face increasingly complex threats
that often compound the negative impacts of disaster and
climate shocks, ranging from migration caused by fragility
and conflict situations, to the risk of pandemics. For
instance, it is estimated that 93 percent of people facing
extreme poverty today are living in countries that are
politically fragile or environmentally vulnerable, and in
many cases, both. The United Nations’ humanitarian appeal
for 2017, for example, stands at a record US$22.2 billion,
to help almost 93 million people affected by conflicts and
natural disasters. Climate change exacerbates some of these
risks by increasing the frequency and intensity of extreme
weather events. In addition, economic growth and rapid
urbanization increase exposure. Building resilience is
therefore crucial to safeguard poverty reduction efforts and
promote sustainable and inclusive development, particularly
for the poor and vulnerable, who are the least able to cope
with and adapt to increasing risks. To achieve the
overarching objective of reducing the protection gap in
vulnerable developing countries, and to catalyze action
around these priority areas and activities, the G20 could
promote the creation of a Global Partnership for Climate and
Disaster Risk Finance and Insurance Solutions. The Global
Partnership could bring together relevant partners from
developing and developed countries, international
organizations, the private sector, and civil society. To
achieve maximum impact, the Global Partnership would
leverage the comparative advantages of all partners and
build on the work of existing platforms and initiatives. It
will leverage the technical expertise and capacity of the
private insurance and reinsurance industry. The G20 could
develop a work program structured around the four priority
action areas identified above to specify how countries will
support specific activities. Such efforts will not only
promote financial protection and help close the protection
gap, but will also support the broader disaster and climate
resilience agenda.
Citation
“World Bank Group. 2017. Sovereign Catastrophe Risk Pools: World Bank Technical Contribution to the G20. © World Bank, Washington, DC. http://hdl.handle.net/10986/28311 License: CC BY 3.0 IGO.”