World Bank2015-04-062015-04-062015-02https://hdl.handle.net/10986/21697This country note is produced is part of The Pacific Catastrophe Risk Assessment andFinancing Initiative (PCRAFI). The geographic spread of the Cook Islands poses logistical problems for any necessary post-disaster relief and response efforts. The events of 2005 demonstrated that the Cook Islands is extremely vulnerable to the threat of tropical cyclones (TCs): in the two months of February and March 2005, TCs Meena, Nancy, Olaf, Percy, and Rae swept the country. The Cook Islands is expected to incur, on average, about NZ$6 million (US$4.9 million) per year in losses due to tropical cyclones. In the next 50 years, the Cook Islands has a 50 percent chance of experiencing a per-event loss exceeding NZ$97 million (US$79.5 million. The Cook Islands has a proactive approach to disaster risk financing and insurance (DRFI), which is supported by the upper echelons of government. In January 2011, the prime minister in his role as chair of the National Disaster Risk Management Council requested that the Ministry of Finance and Economic Management look at ways to become self-reliant in initial disaster response and generate new income streams for investment in a fund specifically for disaster management response and recovery. The Cook Islands has available a maximum amount of NZ$5.6 million (US$4.6 million) in the form of contingency funds and catastrophe risk insurance to facilitate disaster response. A number of options for further improving the Cook Islands financial protection against disasters are presented for consideration: (a) the development of an integrated DRFI strategy; (b) investigation of using contingent credit to access additional liquidity post-disaster; (c) development of an operations manual for post-disaster budget mobilization and execution; and (d) the identification of assets to be included in an insurance program for critical public assets.en-USCC BY 3.0 IGOACCOUNTINGALLOCATIONAPPLICATIONSATTACHMENT POINTBONDSBORROWING CAPACITYBROKERSBUILDING CODEBUSINESS INTERRUPTION INSURANCECAPITAL COSTSCAPITAL MARKETSCAPTIVE INSURANCECASH RESERVESCASUALTIESCATASTROPHE BONDSCATASTROPHE REINSURANCECATASTROPHIC EVENTSCLIMATECLIMATE CHANGECOMPETITIVENESSCONTINGENCY PLANNINGCONVENTIONAL INSURANCECOUNTRY RISKCOVERAGECREDIT ARRANGEMENTSCREDIT LINESCURRENCYCYCLONE EVENTSDAMAGE ASSESSMENTDEBTDEBT OUTSTANDINGDEBT REPAYMENTDEBT SERVICEDEBT SERVICINGDEPOSITDERIVATIVESDEVASTATIONDEVELOPMENT BANKDISASTERDISASTER EMERGENCYDISASTER EMERGENCY RESPONSEDISASTER FINANCINGDISASTER INSURANCEDISASTER MANAGEMENTDISASTER PREPAREDNESSDISASTER RECONSTRUCTIONDISASTER REDUCTIONDISASTER RELIEFDISASTER RESPONSEDISASTER RISKDISASTER RISK FINANCINGDISASTER RISK REDUCTIONDISASTER RISKSDISBURSEMENTDISBURSEMENTSDOMESTIC CREDITDOMESTIC SOURCESEARTHQUAKEEARTHQUAKE INSURANCEEARTHQUAKESECONOMIC IMPACTEMERGENCY ASSISTANCEEMERGENCY MANAGEMENTEMERGENCY RESPONSEEQUIPMENTEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL CREDITEXTREME EVENTSFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL RESILIENCEFINANCIAL RISKFINANCIAL RISK-SHARING MECHANISMSFINANCIAL SECTORFINANCIAL SUPPORTFINANCING REQUIREMENTSFIREFLOODSFOREIGN AFFAIRSFORMS OF CREDITFUNGIBLEGENERAL INSURANCEGOVERNMENT BONDSGOVERNMENT BORROWINGGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT INSURANCEGOVERNMENT REVENUEGRANT FUNDINGGROSS DOMESTIC PRODUCTHOLDINGINCOMEINCOME STREAMINCOME STREAMSINDEBTED COUNTRIESINDEMNITYINDEMNITY INSURANCEINSPECTIONSINSTRUMENTINSURABLE RISKSINSURANCEINSURANCE AGENTSINSURANCE BROKERINSURANCE BROKERSINSURANCE COMPANIESINSURANCE COMPANYINSURANCE CONTRACTSINSURANCE COVERAGEINSURANCE INDUSTRYINSURANCE LAWINSURANCE MARKETINSURANCE MARKETSINSURANCE PENETRATIONINSURANCE PILOTINSURANCE POLICYINSURANCE PREMIUMINSURANCE PRODUCTSINSURANCE RATESINSURANCE REGULATIONINSURANCE REGULATIONSINSURANCE SCHEMEINSURANCE SUPERVISORSINSURED LOSSESINSURERINSURERSINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL INSURANCEINTERNATIONAL RELIEFINTERNATIONAL STRATEGY FOR DISASTER REDUCTIONINVENTORYINVESTMENT CORPORATIONISSUANCELACK OF COMPETITIONLIFE INSURANCE PREMIUMLIFE INSURERSLIQUIDITYLOANLOAN REPAYMENTMACROECONOMIC STABILIZATIONMONETARY FUNDNATIONAL EMERGENCYNATIONAL INVESTMENTNATURAL CATASTROPHENATURAL CATASTROPHESNATURAL DISASTERNATURAL DISASTERSNATURAL HAZARDSNEGOTIATIONNON-LIFE INSURANCEOFFSHORE MARKETSOPPORTUNITY COSTPHYSICAL ASSETSPHYSICAL DAMAGEPORTFOLIOPORTFOLIO MANAGEMENTPREMIUMSPRIVATE CATASTROPHE INSURANCEPROGRAMSPROPERTY INSURANCEPRUDENTIAL REGULATIONPRUDENTIAL SUPERVISIONPUBLIC ASSETSPUBLIC FINANCESPUBLIC FUNDSPUBLIC SPENDINGRECURRENT EXPENDITUREREGULATORY FRAMEWORKREINSURANCEREINSURANCE CAPACITYREINSURANCE CONTRACTREINSURANCE CONTRACTSREINSURANCE PREMIUMSREINSURERSRELIEF WORKRESERVERESERVE BANKRESERVE FUNDRESERVESRETURNRETURNSRISK ASSESSMENTRISK FACTORSRISK INSURANCERISK MANAGEMENTRISK POOLINGRISK PREMIUMSRISK PROFILERISK TRANSFERSAVINGSSETTLEMENTSMALL BUSINESSESSOLVENCYSOLVENCY REQUIREMENTSSOVEREIGN RISKSTOCK EXCHANGESSTORMSTORM SURGESWAPSWAPSTAXTAX CREDITSTAX INCENTIVESTERRITORIAL WATERSTOTAL COSTTROPICAL CYCLONETROPICAL CYCLONESTROPICAL STORMSTRUST FUNDTRUSTEETRUSTEESTSUNAMITYPHOONUNDERINSURANCEUNDERWRITINGVALUATIONVALUATION DATEVALUATIONSWIND SPEEDWITHDRAWALReportWorld Bank10.1596/21697