A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management

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A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management. The papers presented in this publication do not represent the views or thinking of CCRIF SPC and are solely that of the authors. CCRIF SPC, providing quick liquidity to Caribbean and Central American governments after a disaster 1 CCRIF Technical Paper Series: Volume 4 - October 2020 2 CCRIF SPC, providing quick liquidity to Caribbean and Central American governments after a disaster A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management The papers presented in this publication do not represent the views or thinking of CCRIF SPC and are solely that of the authors. MESSAGE FROM THE CHIEF EXECUTIVE OFFICER I am pleased to present this fourth publication of technical papers, which highlights academic papers completed by recipients of CCRIF scholarships who have completed degrees in areas related to disaster risk management at The University of the West Indies and other universities in the United Kingdom. These scholarships are offered within CCRIF’s larger Technical Assistance Programme, which is aimed at building capacity among key organizations as well as individuals and non- governmental organizations for improved disaster risk management in the Caribbean region. CCRIF is committed to supporting the sharing of knowledge and experiences in disaster risk management through publications such as this. We believe it is important to share research and lessons learned within our Technical Assistance Programme among national ministries and agencies and regional organizations to create synergies and build on work done. To further illustrate this sharing of information, this publication also includes a selection of expert notes which are in the form of speeches that were delivered at meetings and conferences addressing disaster risk fi nancing within the context of disaster risk management and climate change. Throughout the years, members of the CCRIF management and team have participated in a range of events throughout the world, hosted by national governments and international development partners – as these entities seek to learn more about CCRIF and its products and services. We are pleased to share our experiences and insights into disaster risk fi nancing that we have gained over the 13 years since CCRIF’s inception in 2007. We hope that the expert notes included in this publication will help to deepen understanding of disaster risk fi nancing – including CCRIF’s parametric insurance – and how this can help governments reduce budget volatility in the aftermath of natural disasters. Isaac Anthony Chief Executive Offi cer CCRIF SPC, providing quick liquidity to Caribbean and Central American governments after a disaster i CCRIF Technical Paper Series: Volume 4 - October 2020 Message from the CHAIRPERSON OF THE TECHNICAL ASSISTANCE COMMITTEE This collection of papers highlights research conducted by nine recipients of CCRIF scholarships between 2010 and 2017. Begun in 2010, CCRIF’s scholarship programmes form a key part of the Facility’s Technical Assistance Programme, which aims to help Caribbean countries deepen their understanding of natural hazards and catastrophe risk, and the potential impacts of climate change on the region – and to develop solutions to improve resilience to natural hazards and climate change. The scholarship programmes are part of CCRIF’s commitment to building capacity among the young people of the Caribbean, thereby developing the next generation of disaster risk specialists. The student theses and papers included in this publication demonstrate the diversity of research topics undertaken by CCRIF scholarship recipients – which include social issues such as a discussion on whether disaster scenes should be “off-limits” to victims’ relatives and climate and risk communication; an analysis of the fi nancial services sector responses to climate change risks; and more technical discussions, such as seismic analysis and fragility assessment of reinforced concrete structures. We are pleased that the students have also brought the knowledge and skills obtained during their studies back to their work on returning to the Caribbean – at national meteorological agencies and ministries with responsibility for infrastructure and environment as well as institutions such as the UWI Seismic Research Centre. This publication supplements CCRIF’s 3rd Technical Series, A Collection of Papers … Showcasing the Work of CCRIF Scholarship Recipients 2010 – 2012, published in 2014, which also focused on research conducted by other CCRIF scholarship recipients. We believe that the collective body of work conducted by these Caribbean students can inform other substantive research and initiatives in the region. The CCRIF scholarship programmes are also complemented by an internship programme, which grants internships to recent university graduates, at organizations throughout the Caribbean, providing opportunities to extend their studies through experiential learning. Through both of these programmes, we believe that we are building a cadre of professionals who can play a key role in the future development of national and regional strategies that will lead to improved disaster risk management and increased climate change resilience. Desirée Cherebin Vice-Chairperson, CCRIF SPC and Chairperson of the Technical Assistance Committee CCRIF SPC, providing quick liquidity to Caribbean ii and Central American governments after a disaster A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management TABLE OF CONTENTS i ii 1 2 3 5 7 8 13 44 90 110 121 127 162 179 196 203 204 205 210 214 CCRIF SPC, providing quick liquidity to Caribbean and Central American governments after a disaster iii CCRIF Technical Paper Series: Volume 4 - October 2020 INTRODUCTION This publication – CCRIF’s 4th Technical Papers Series – presents a collection of academic papers by Caribbean nationals who have received CCRIF scholarships to pursue study in areas related to disaster risk management, environmental management and civil engineering at The University of the West Indies and universities in the United Kingdom1. This publication also presents a selection of Expert Notes, in the form of speeches presented by members of the CCRIF Management and Team at regional and international fora, focusing on disaster risk fi nancing. The purpose of this Technical Papers Series is to share with our stakeholders some of the innovative research and ideas about disaster risk management, disaster risk fi nancing and climate change – as well as the role that CCRIF and its parametric insurance policies can play in advancing sustainable development in the region. This book complements and builds on the fi rst three Technical Series: Volume 3: A Collection of Papers … Showcasing the Work of CCRIF Scholarship Recipients 2010 – 2012. November 2014 Volume 2: A Collection of Papers, Articles and Expert Notes. November 2011 Volume 1: A Collection of Papers and Articles. November 2009 The publication includes the following sections: Section 1: Background information on CCRIF Section 2: The academic papers Section 3: The expert notes 1CCRIF provides scholarships for study also at other universities in the Caribbean as well as universities in the USA and Canada. CCRIF SPC, providing quick liquidity to Caribbean 1 and Central American governments after a disaster A Collection of Papers and Expert Notes on Disaster Risk Financing and Disaster Risk Management SECTION 1 BACKGROUND INFORMATION CCRIF SPC, providing quick liquidity to Caribbean and Central American governments after a disaster 2 CCRIF Technical Paper Series: Volume 4 - October 2020 ABOUT CCRIF In 2007, the Caribbean Catastrophe Risk Insurance Facility was formed as the first multi-country risk pool in the world, and was the first insurance instrument to successfully develop parametric policies backed by both traditional and capital markets. In 2014, the Facility was restructured into a segregated portfolio company (SPC) to facilitate offering new products and expansion into new geographic areas and is now named CCRIF SPC. It is owned, operated and registered in the Caribbean. CCRIF SPC limits the financial impact of natural hazard events to Caribbean and Central American governments by quickly providing short-term liquidity when a policy is triggered. CCRIF offers parametric insurance policies for tropical cyclones, earthquakes, excess rainfall, fi sheries and electric utilities, giving members the unique opportunity to purchase disaster risk insurance with lowest-possible pricing. Since its inception CCRIF has made 45 payouts totalling over US$163 million to 14 member governments on their tropical cyclone, earthquake and/or excess rainfall policies. CCRIF was developed under the technical leadership of the World Bank and with a grant from the Government of Japan. It was capitalized through contributions to a Multi-Donor Trust Fund (MDTF) by the Government of Canada, the European Union, the World Bank, the governments of the UK and France, the Caribbean Development Bank and the governments of Ireland and Bermuda, as well as through membership fees paid by participating governments. In 2014, an MDTF was established by the World Bank to support the development of CCRIF SPC’s new products for current and potential members, and facilitate the entry for Central American countries and additional Caribbean countries. The MDTF currently channels funds from various donors, including:
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