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2019 Special Report of Disaster and Risk in the Belt and Road Region

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2019 Special Report of Disaster and Risk in the Belt and Road Region 2019 Special Report of Disaster and Risk in the Belt and Road Region SOUTHEAST ASIA The pearl of the maritime silk road 太平再保险（中国）有限公司 北京师范大学减灾与应急管理研究院 TAIPING REINSURANCE(CHINA)CO,.LTD. Academy of Disaster Reduction and Emergency Management Beijing Normal University JOINT RESEARCH CENTER FOR DISASTER AND RISK MANAGEMENT Preface When Chinese President Xi Jinping visited Southeast Asia (SEA) in September and October of 2013, he raised the initiative of jointly building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road (hereinafter referred to as the Belt and Road), aiming to build a community of shared interests, destiny, and responsibility that features political mutual trust, economic integration, and cultural inclusiveness. With the concerted efforts of all parties, the connectivity framework of "Six Corridors, Six Roads, Multiple Countries, and Multiple Ports" has basically taken shape, and a number of cooperative projects have taken root. In order to actively respond to the Belt and Road Initiative proposed by President Xi, and serve the strategic deployment with improved coordination in pursuing the "buy in" and "go global", the Taiping Reinsurance (China) Co., Ltd. and Academy of Disaster Reduction and Emergency Management of Beijing Normal University (ADREM-BNU), in accordance with the principle of strong joint complementary advantages and coordinated development, have set up a Joint Research Center for Disaster and Risk Management. The center will jointly carry out focus studies on risks along the Belt and Road, and will periodically publish in the Special Report of Disaster and Risk in the Belt and Road Region series. These efforts will provide scientific support for decision-making for country governments along the Belt and Road to reduce natural disaster risk, provide comprehensive risk management consultant services for Chinese enterprises "going global", help promote the ability of the insurance industry to handle risk, and better play the role of disaster risk science and insurance research in national disaster risk reduction (DRR) and development of the Belt and Road. In 2019, the Special Report selected SEA, an important region in the maritime silk road, as its annual focus of analysis. Based on detailed data, the report analyzed the spatiotemporal patterns of historical natural disasters in SEA, and the main causes of large-scale disasters in the region. On this basis, it conducted focused analysis of earthquake and volcano threats, and simulated the increasing hydro-meteorological disaster risk in the warming climate. It also carried out disaster exposure analysis for transportation infrastructures that are critical for promoting connectivity in the Belt and Road initiative. The development of non-life insurance and their role in transferring risks were also discussed. Based on the above analyses, suggestions for integrated disaster risk governance were provided. The report aims to provide reference for local governments and other stakeholders in SEA, enterprises and institutions from China, and people from the international community who are concerned about the disaster and risk in the Belt and Road region. The ultimate goal is to contribute to DRR for local areas and Chinese enterprises operating businesses there, and further strengthen cooperation in economy, culture, and DRR between SEA countries and China. Pang, Wei, Senior Economist Shi, Peijun, Professor Taiping Reinsurance (China) Co., Ltd. Deputy Dean, Academy of Disaster Reduction Party Secretary, General Manager and Emergency, Management Ministry of Disaster Management & Ministry of Education President, Qinghai Normal University Preface When Chinese President Xi Jinping visited Southeast Asia (SEA) in September and October of 2013, he raised the initiative of jointly building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road (hereinafter referred to as the Belt and Road), aiming to build a community of shared interests, destiny, and responsibility that features political mutual trust, economic integration, and cultural inclusiveness. With the concerted efforts of all parties, the connectivity framework of "Six Corridors, Six Roads, Multiple Countries, and Multiple Ports" has basically taken shape, and a number of cooperative projects have taken root. In order to actively respond to the Belt and Road Initiative proposed by President Xi, and serve the strategic deployment with improved coordination in pursuing the "buy in" and "go global", the Taiping Reinsurance (China) Co., Ltd. and Academy of Disaster Reduction and Emergency Management of Beijing Normal University (ADREM-BNU), in accordance with the principle of strong joint complementary advantages and coordinated development, have set up a Joint Research Center for Disaster and Risk Management. The center will jointly carry out focus studies on risks along the Belt and Road, and will periodically publish in the Special Report of Disaster and Risk in the Belt and Road Region series. These efforts will provide scientific support for decision-making for country governments along the Belt and Road to reduce natural disaster risk, provide comprehensive risk management consultant services for Chinese enterprises "going global", help promote the ability of the insurance industry to handle risk, and better play the role of disaster risk science and insurance research in national disaster risk reduction (DRR) and development of the Belt and Road. In 2019, the Special Report selected SEA, an important region in the maritime silk road, as its annual focus of analysis. Based on detailed data, the report analyzed the spatiotemporal patterns of historical natural disasters in SEA, and the main causes of large-scale disasters in the region. On this basis, it conducted focused analysis of earthquake and volcano threats, and simulated the increasing hydro-meteorological disaster risk in the warming climate. It also carried out disaster exposure analysis for transportation infrastructures that are critical for promoting connectivity in the Belt and Road initiative. The development of non-life insurance and their role in transferring risks were also discussed. Based on the above analyses, suggestions for integrated disaster risk governance were provided. The report aims to provide reference for local governments and other stakeholders in SEA, enterprises and institutions from China, and people from the international community who are concerned about the disaster and risk in the Belt and Road region. The ultimate goal is to contribute to DRR for local areas and Chinese enterprises operating businesses there, and further strengthen cooperation in economy, culture, and DRR between SEA countries and China. Pang, Wei, Senior Economist Shi, Peijun, Professor Taiping Reinsurance (China) Co., Ltd. Deputy Dean, Academy of Disaster Reduction Party Secretary, General Manager and Emergency, Management Ministry of Disaster Management & Ministry of Education President, Qinghai Normal University Executive summary Editorial committee Southeast Asia (SEA) is the pearl of the In addition to the extremely high hazard subway station), 17 bridges, 4 airports, and Maritime Silk Road and occupies a pivotal intensity, the relatively low prevention 2 ports. According to hazard exposure Series editor position in the "Belt and Road" initiative. capacity and weak monitoring and analysis, 10.3% of the road sections, 28.6% Peijun Shi Wei Pang Located at the "crossroads" between Asia early-warning capabilities are also among of the railway sections, 3 bridges, 1 airport, and Oceania, the Pacific Ocean, and the the key factors contributing to devastating and 2 ports are exposed to medium-to-high Indian Ocean, SEA has a land area of 5.6% losses. potential earthquake damage. Similarly, Members of the 2019 report team (sorted alphabetically) of the "Belt and Road" region (that includes 18.5% of the road sections, 14.9% of the Danling Chai Kaiwen Li Lisong Li Xinli Liao Kai Liu Weihang Liu 72 countries and regions along the route), SEA’s ability to effectively reduce railway sections, and 2 airports are exposed Yong Lu Qingyang Mu Kaixun Wang Han Wang Ming Wang Mingzhong Wang carrying 13.2% of the region's population casualties and property losses falls to high potential flood damage; 72.6% of the and 10.6% of its gross domestic product relatively behind its corresponding level road mileage, 33.5% of railway mileage, 5 Qianzhi Wang Caixia Wu Wei Xu Tao Ye Yafu Yu Li Zhang (GDP). Additionally, 26.7% of disaster of economic development. SEA’s death toll bridges, and 3 airports are exposed to high Yong Zhang Junlin Zhang Jiatong Zhu events, 5-10% of disaster victims, 25% of per million people and economic loss as a potential damage from tropical cyclones. disaster deaths, and 13.5% of disaster share of the gross domestic product (GDP) There is a need for better disaster risk economic losses occurred in SEA. due to disasters rank at the top 25% and governance to avoid losses during 15% worldwide, respectively. infrastructure construction. SEA is facing natural disasters with Correspondingly, its GDP per capita ranks at greater frequency and intensity, as well as top 57% worldwide. Insurance and reinsurance should play a Supporting institutions large losses and significant regional more important role in SEA disaster risk differences. SEA faces severe earthquake and transfer. Since 1980, the frequencies of natural volcanic disaster risks, and climate The non-life insurance density of major SEA Academy of Disaster
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