Reinsurance to improve resilience in poor countries
Friday, 07 21 2017, Category: Nature, Country: World
Analysis by catastrophe risk modeller RMS undertaken for the UK’s Department for International Development (DFID), shows that the establishment of insurance schemes to protect against natural disasters in low and low-middle income countries can provide average annual recoveries equivalent to 11% of asset losses.
RMS has completed analysis to determine how feasible insurance schemes could lower the financial impact of disaster losses on low and low-middle income countries over the next decade.
The catastrophe risk modeller reports that the average annual asset loss from natural catastrophes in low to low-middle income countries is equal to $29.1 billion, of which 3%, or $900 million is covered by insurance. A further $2.2 billion, or roughly 8% of the total is currently covered by humanitarian aid expenditure.