The Centre for Disaster Protection works on how the international system can better protect people when disasters strike. With years of experimentation and iteration behind them, risk pools are an essential piece of the answer, offering predictable pay-outs for pre-agreed risks like earthquakes and droughts.
CCRIF SPC (formerly The Caribbean Catastrophe Risk Financing Facility) has 22 Caribbean and Central American countries as members. Since 2007 it has paid out USD $245 million in claims for earthquakes, hurricanes, and excess rainfall. The Pacific Catastrophe Risk Insurance Company (PCRIC) now has six members, three of which pay regular premiums for coverage. The African Risk Capacity (ARC) Group has so far paid out USD $124 million in claims for droughts and cyclones, with all 55 members of the African Union eligible to access capacity building support and ultimately join the risk pool. The Southeast Asia Disaster Risk Insurance Facility Insurance Company, set up and owned by the ASEAN+3 countries, helps cover flood risks in Lao PDR.
Last month, the Centre hosted the executive leadership and technical experts running these risk pools. Our summit was the pools’ first gathering focused on peer-to-peer learning, taking lessons from one region and cross-pollinating it to others.
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