Innovation in Disaster Risk Financing for Developing Countries: Public and Private Contributions

Innovation in disaster risk financing and insurance is occurring at all scopes: risk transfer for governments and sovereign entities, private non-life catastrophe insurance markets for homeowners, agricultural insurance for farmers and herders, and disaster microinsurance for low-income populations. Furthermore, innovation is happening on a variety of fronts in the field of disaster risk financing and insurance – product development, disaster risk assessment and sharing, and delivery channels to name a few – that interact to produce new solutions. These innovations, through public-private partnerships, can foster the development of risk market infrastructure in developing countries, which are essential to ensure the emergence of cost-effective disaster risk financing and insurance solutions from sovereign entities to households.

This report aims to advance the dialogue on creative, forward-looking solutions for developing countries by presenting recent innovations on disaster risk financing and insurance developed by the private markets as well as the international donor community, from the macro (government) level down to the micro (household) level. It discusses how these innovations can be adapted and implemented in developing countries to better protect efficiently those countries against the financial consequences of natural disasters.

  • Resource type
  • Author The World Bank
  • Year of Publication2011
  • Region
  • LanguageEnglish
  • Number of pages77 pp.

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