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 Reduction and Emergency, Management Ministry of Disaster Management & Ministry of Education disasters, death tolls, and economic losses change will further increase the risk of countries has significantly increased since Faculty of Geographical Sciences, Beijing Normal University in SEA have shown a significant increase. extreme events. 2007, but has stagnated since 2012. The China Taiping Insurance Group Ltd. Floods and tropical cyclones (typhoons) Since 1900, every year, SEA experienced 2 non-life insurance penetration grew slowly Secretariat of UNDRR Asia- Pacific Science Technology and Academia Advisory Group were the most frequent and caused the earthquakes of magnitude 7.0 or higher and and reached only 2% in 2017. The pairing Future Earth Core Science Project – Integrated Risk Governance largest economic losses, while earthquakes 7.5 volcanic eruptions. Compared with the between non-life insurance penetration and and tropical cyclones caused the highest historical period, annual average heat wave GDP per capita of SEA is close to the global casualties. days in SEA in the 2030s and 2050s will average. However, in past large-scale increase by approximately 5% and 8%, disasters, insurance indemnity was rather The regional differences in historical annual average rainfall from rainstorms will limited, while the large-scale disasters disasters in SEA are obvious. The Philippine increase by approximately 7% and 12%, the severely influenced regional insurance and Acknowledgement islands and the east and west parts of the annual average population exposure to heat reinsurance markets. Indochina Peninsula are mainly affected by waves will increase by 8.6 and 14.7 times, tropical cyclones from the northwest Pacific the annual average mortality during heat For better management of disaster risk, National Key Research and Development Program ”Global Change Risk of Ocean and the Indian Ocean. The southern waves will increase by 3.5 and 8.5 times, the SEA needs to further understand and Population and Economic System: Mechanisms and Assessments" Indonesian islands are mainly affected by annual average maximal mortality in floods assess natural disaster risk, promote (2016YFA0602400) earthquakes, volcanic eruptions, and will increase by 4.1 and 7.2 times, and the disaster prevention capacity in terms of both tsunamis, while the Indochina Peninsula has annual average maximal economic loss engineering and non-engineering aspects, long been severely threatened by floods. claimed by floods will increase by 31.6 and establish a regional integrated risk National Key Research and Development Program "Research and Demonstration of 48.2 times under the RCP4.5-SSP2 scenario, governance information platform, enhance Technology for Large-scale Disaster Assessment, Relief, Recovery and SEA is under severe threats from large-scale respectively. the resilience of critical infrastructures, build Reconstruction" (2017YFC1502900) disasters. The 2004 Indian Ocean resilient production and supply chains, Earthquake–Tsunami and the 2008 Tropical As the infrastructure investment in SEA establish a regional disaster risk transfer and Storm “Nargis” are among the deadliest accelerates, the infrastructure exposure sharing mechanism, and set up a combined disasters worldwide since 1980. The 2011 to major hazards will significantly intra-regional coordination mechanism for flood and the 2013 super typhoon increase. Currently, infrastructure projects in disaster risk governance. “Haiyan” (also known as Yolanda) are among SEA with Chinese participation include 10 the costliest disasters worldwide since 1980. highways, 13 railway lines (including 1 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 Reduction and Emergency, Management Ministry of Disaster Management & Ministry of Education disasters, death tolls, and economic losses change will further increase the risk of countries has significantly increased since Faculty of Geographical Sciences, Beijing Normal University in SEA have shown a significant increase. extreme events. 2007, but has stagnated since 2012. The China Taiping Insurance Group Ltd. Floods and tropical cyclones (typhoons) Since 1900, every year, SEA experienced 2 non-life insurance penetration grew slowly Secretariat of UNDRR Asia- Pacific Science Technology and Academia Advisory Group were the most frequent and caused the earthquakes of magnitude 7.0 or higher and and reached only 2% in 2017. The pairing Future Earth Core Science Project – Integrated Risk Governance largest economic losses, while earthquakes 7.5 volcanic eruptions. Compared with the between non-life insurance penetration and and tropical cyclones caused the highest historical period, annual average heat wave GDP per capita of SEA is close to the global casualties. days in SEA in the 2030s and 2050s will average. However, in past large-scale increase by approximately 5% and 8%, disasters, insurance indemnity was rather The regional differences in historical annual average rainfall from rainstorms will limited, while the large-scale disasters disasters in SEA are obvious. The Philippine increase by approximately 7% and 12%, the severely influenced regional insurance and Acknowledgement islands and the east and west parts of the annual average population exposure to heat reinsurance markets. Indochina Peninsula are mainly affected by waves will increase by 8.6 and 14.7 times, tropical cyclones from the northwest Pacific the annual average mortality during heat For better management of disaster risk, National Key Research and Development Program ”Global Change Risk of Ocean and the Indian Ocean. The southern waves will increase by 3.5 and 8.5 times, the SEA needs to further understand and Population and Economic System: Mechanisms and Assessments" Indonesian islands are mainly affected by annual average maximal mortality in floods assess natural disaster risk, promote (2016YFA0602400) earthquakes, volcanic eruptions, and will increase by 4.1 and 7.2 times, and the disaster prevention capacity in terms of both tsunamis, while the Indochina Peninsula has annual average maximal economic loss engineering and non-engineering aspects, long been severely threatened by floods. claimed by floods will increase by 31.6 and establish a regional integrated risk National Key Research and Development Program "Research and Demonstration of 48.2 times under the RCP4.5-SSP2 scenario, governance information platform, enhance Technology for Large-scale Disaster Assessment, Relief, Recovery and SEA is under severe threats from large-scale respectively. the resilience of critical infrastructures, build Reconstruction" (2017YFC1502900) disasters. The 2004 Indian Ocean resilient production and supply chains, Earthquake–Tsunami and the 2008 Tropical As the infrastructure investment in SEA establish a regional disaster risk transfer and Storm “Nargis” are among the deadliest accelerates, the infrastructure exposure sharing mechanism, and set up a combined disasters worldwide since 1980. The 2011 to major hazards will significantly intra-regional coordination mechanism for Thailand flood and the 2013 super typhoon increase. Currently, infrastructure projects in disaster risk governance. “Haiyan” (also known as Yolanda) are among SEA with Chinese participation include 10 the costliest disasters worldwide since 1980. highways, 13 railway lines (including 1 Outline

01 05

Natural environment and Rapid growth in infrastructure development status investment and disaster exposure P5-P6 P31-P37 02 06

Historical disasters Insurance could play more important P9-P16 roles in disaster risk transfer P39-P44 03 07

Severe threats from earthquakes Suggestions to promote disaster and volcanos risk governance in SEA P19-P20 P47-P48 04 08

Climate change is increasing extreme Appendix climate event risks P50-P53 P23-P28 Outline

01 05

Natural environment and Rapid growth in infrastructure development status investment and disaster exposure P5-P6 P31-P37 02 06

Historical disasters Insurance could play more important P9-P16 roles in disaster risk transfer P39-P44 03 07

Severe threats from earthquakes Suggestions to promote disaster and volcanos risk governance in SEA P19-P20 P47-P48 04 08

Climate change is increasing extreme Appendix climate event risks P50-P53 P23-P28 On October 3, 2013, Chinese President Xi, Jinping delivered a speech titled "Towards A Key figures of SEA in the Belt and Road region Closer ASEAN-China Community of Shared Future" to the Indonesian parliament, proposing to jointly build the "21st century Maritime Silk Road". He said that Southeast 26.68% Asia (SEA) has been an important hub of the "Maritime Silk Road" since ancient times. 25.74% China will strengthen maritime cooperation with The Association of Southeast Asian Nations (ASEAN) countries to jointly build the "Maritime Silk Road" for the 21st century. China is ready to expand pragmatic cooperation with ASEAN countries in various fields, 13.19% 13.04% 10.64% share what they have, and draw on each other's strengths, as well as share opportunities and jointly meet challenges with ASEAN countries to realize common development and 5.6% prosperity.

SEA is located at the junction of the Pacific Ocean and the Indian Ocean, with longitude of 92° to 140°E and latitude of 10° to 26°N. It is composed of the Indo-China Peninsula and the Malay islands, covering an area of about 4.57 million km2, and comprises a total Land area Population Disaster Frequency Casulty Economic Loss GDP of 11 countries: , , Cambodia, Thailand, , Brunei, Malaysia, Singapore, Indonesia, the , and East Timor.

Because of the unique geographical location and the regular trade winds, SEA has been and will continue to be an important trade hub. SEA has devoted itself to open maritime trade since Funan in the first century AD. At the beginning of the 5th century, with the development of spice trading, navigation, and shipbuilding technologies, frequent east-west trading occurred through the Strait of Malacca. In the 11th and 12th centuries, the Philippine Sea became active due to the participation of Chinese merchants. At the same time, trade in the Bay of Bengal rapidly developed, and the entire SEA trade circle became active. In the new maritime navigation era, the trade environment was gradually established, and entrepot trading and spice trading were two dominant trade modes in the Strait of Malacca, an important maritime traffic artery.

In the process of the development of trade in SEA, the rich products of each country and their management and opening policies to the trade market have resulted in the Maritime Silk Road still being alive today. At the same time, the development and prosperity of the Maritime Silk Road also exerted a huge and far-reaching impact on the political, economic, and cultural life of the people in SEA, and greatly promoted the social and historical development in this area. On October 3, 2013, Chinese President Xi, Jinping delivered a speech titled "Towards A Key figures of SEA in the Belt and Road region Closer ASEAN-China Community of Shared Future" to the Indonesian parliament, proposing to jointly build the "21st century Maritime Silk Road". He said that Southeast 26.68% Asia (SEA) has been an important hub of the "Maritime Silk Road" since ancient times. 25.74% China will strengthen maritime cooperation with The Association of Southeast Asian Nations (ASEAN) countries to jointly build the "Maritime Silk Road" for the 21st century. China is ready to expand pragmatic cooperation with ASEAN countries in various fields, 13.19% 13.04% 10.64% share what they have, and draw on each other's strengths, as well as share opportunities and jointly meet challenges with ASEAN countries to realize common development and 5.6% prosperity.

SEA is located at the junction of the Pacific Ocean and the Indian Ocean, with longitude of 92° to 140°E and latitude of 10° to 26°N. It is composed of the Indo-China Peninsula and the Malay islands, covering an area of about 4.57 million km2, and comprises a total Land area Population Disaster Frequency Casulty Economic Loss GDP of 11 countries: Vietnam, Laos, Cambodia, Thailand, Myanmar, Brunei, Malaysia, Singapore, Indonesia, the Philippines, and East Timor.

Because of the unique geographical location and the regular trade winds, SEA has been and will continue to be an important trade hub. SEA has devoted itself to open maritime trade since Funan in the first century AD. At the beginning of the 5th century, with the development of spice trading, navigation, and shipbuilding technologies, frequent east-west trading occurred through the Strait of Malacca. In the 11th and 12th centuries, the Philippine Sea became active due to the participation of Chinese merchants. At the same time, trade in the Bay of Bengal rapidly developed, and the entire SEA trade circle became active. In the new maritime navigation era, the trade environment was gradually established, and entrepot trading and spice trading were two dominant trade modes in the Strait of Malacca, an important maritime traffic artery.

In the process of the development of trade in SEA, the rich products of each country and their management and opening policies to the trade market have resulted in the Maritime Silk Road still being alive today. At the same time, the development and prosperity of the Maritime Silk Road also exerted a huge and far-reaching impact on the political, economic, and cultural life of the people in SEA, and greatly promoted the social and historical development in this area. 01 Natural environment and development status 01 Natural environment and development status 05 Natural environment Development status 06

Elevation and topography Demographic features

The average land elevation of SEA is approximately SEA is one of the most densely populated areas in 377m, with great topographic relief. It is divided into the world, and in 2015, the population density was the Indochina Peninsula and the Malay measured at 848 persons/km2. Of the entire region, Archipelago. The Indochina Peninsula is interlaced Singapore has the highest population density with with mountains and rivers. The northern part of the approximately 7916 persons/km2, and Laos has the peninsula is relatively high, with mountains lowest population density with approximately 30 extending southward in a palm-like manner. The persons/km2. From the perspective of topography, lower reaches of the great river and the estuary are the population is concentrated in the plains and the alluvial plains. The Malay Archipelago has a rugged estuary deltas; from the perspective of terrain with a narrow coastal plain. It is located at administrative division, the population is mainly the junction of the Eurasian and Indian Plates, distributed in political centers or economic centers, where volcanic and earthquake activities are such as Ho Chi Minh in Vietnam, Kuala Lumpur in intense. Malaysia, Yangon in Myanmar, Bangkok in Thailand, and Jakarta in Indonesia.

Plate tectonic features Economic characteristics

SEA is located in the subduction and collision zone In 2015, Indonesia had the highest GDP among of the Eurasian, Indian, and Pacific Plates. Affected SEA countries (US$470 billion), while Timor-Leste by the compression and collision of the three had the lowest (US$2.1 billion). The GDP of tectonic plates, the two major volcanic earthquake Malaysia, Singapore, the Philippines, and other zones in the world were formed: the countries is approximately US$200 billion. The Mediterranean-Himalayan volcanic earthquake economic development gaps between SEA zone and the Pacific Rim volcanic earthquake zone. countries are huge. Singapore's economy is The seismic and volcanic activities are most prosperous, and its living standard has reached frequent in Indonesia, Philippines, and Myanmar. that of developed countries. In contrast, Vietnam, Due to its unique location, SEA is severely the Philippines, and Indonesia are relatively threatened by earthquakes and volcanoes. underdeveloped, and their economies focus on tourism, basic manufacturing, agriculture, and fishing.

Source:Metcalfe,2005

Tropical cyclones Trade with China

SEA is mainly affected by tropical cyclones from the SEA mainly exports machinery, transportation Indian Ocean and the northwest Pacific Ocean. equipment, fossil fuels, lubricating oils, and related Tropical cyclones can bring abundant rainfall, but substances, as well as non-edible raw materials their winds are destructive. The northwest Pacific other than fuels to China. China mainly exports Ocean, where SEA is located, is the most active machinery, transportation equipment, basin on Earth in terms of tropical cyclones, manufactured products classified by material, and accounting for one-third of all tropical cyclone miscellaneous manufactured products to SEA. The activity worldwide. On average, 26 tropical largest SEA exporter to China is Malaysia, with a cyclones are generated every year in the northwest total trade value of US$54.4 billion in 2017. The Pacific. largest SEA importer from China is Vietnam, with a total trade value of US$71.6 billion in 2017.

Special Report of Disaster and Risk in the Belt and Road Region 2019 05 Natural environment Development status 06

Elevation and topography Demographic features

The average land elevation of SEA is approximately SEA is one of the most densely populated areas in 377m, with great topographic relief. It is divided into the world, and in 2015, the population density was the Indochina Peninsula and the Malay measured at 848 persons/km2. Of the entire region, Archipelago. The Indochina Peninsula is interlaced Singapore has the highest population density with with mountains and rivers. The northern part of the approximately 7916 persons/km2, and Laos has the peninsula is relatively high, with mountains lowest population density with approximately 30 extending southward in a palm-like manner. The persons/km2. From the perspective of topography, lower reaches of the great river and the estuary are the population is concentrated in the plains and the alluvial plains. The Malay Archipelago has a rugged estuary deltas; from the perspective of terrain with a narrow coastal plain. It is located at administrative division, the population is mainly the junction of the Eurasian and Indian Plates, distributed in political centers or economic centers, where volcanic and earthquake activities are such as Ho Chi Minh in Vietnam, Kuala Lumpur in intense. Malaysia, Yangon in Myanmar, Bangkok in Thailand, and Jakarta in Indonesia.

Plate tectonic features Economic characteristics

SEA is located in the subduction and collision zone In 2015, Indonesia had the highest GDP among of the Eurasian, Indian, and Pacific Plates. Affected SEA countries (US$470 billion), while Timor-Leste by the compression and collision of the three had the lowest (US$2.1 billion). The GDP of tectonic plates, the two major volcanic earthquake Malaysia, Singapore, the Philippines, and other zones in the world were formed: the countries is approximately US$200 billion. The Mediterranean-Himalayan volcanic earthquake economic development gaps between SEA zone and the Pacific Rim volcanic earthquake zone. countries are huge. Singapore's economy is The seismic and volcanic activities are most prosperous, and its living standard has reached frequent in Indonesia, Philippines, and Myanmar. that of developed countries. In contrast, Vietnam, Due to its unique location, SEA is severely the Philippines, and Indonesia are relatively threatened by earthquakes and volcanoes. underdeveloped, and their economies focus on tourism, basic manufacturing, agriculture, and fishing.

Source:Metcalfe,2005

Tropical cyclones Trade with China

SEA is mainly affected by tropical cyclones from the SEA mainly exports machinery, transportation Indian Ocean and the northwest Pacific Ocean. equipment, fossil fuels, lubricating oils, and related Tropical cyclones can bring abundant rainfall, but substances, as well as non-edible raw materials their winds are destructive. The northwest Pacific other than fuels to China. China mainly exports Ocean, where SEA is located, is the most active machinery, transportation equipment, basin on Earth in terms of tropical cyclones, manufactured products classified by material, and accounting for one-third of all tropical cyclone miscellaneous manufactured products to SEA. The activity worldwide. On average, 26 tropical largest SEA exporter to China is Malaysia, with a cyclones are generated every year in the northwest total trade value of US$54.4 billion in 2017. The Pacific. largest SEA importer from China is Vietnam, with a total trade value of US$71.6 billion in 2017.

Special Report of Disaster and Risk in the Belt and Road Region 2019 02Historical disasters 02Historical disasters 09 Increasing disaster frequency and loss Significant regional and national differences 10

Occurrence frequency Occurrence frequency

From 1980 to 2018, the frequency of natural There are relatively small differences among SEA disasters in SEA increased by 0.94 events per year countries in the frequency of total disaster on average. Since 2000, the average annual occurrences. The Philippines and Indonesia occurrence of disasters is 49. The year that topped experienced more disasters (485 and 396 the number of annual disaster events was 2011, respectively), while Singapore had fewer disasters with 66. Even in the best years, there were still as due to its limited land area. The main types of many as 17 disasters that occurred. The most disasters in this region are floods and storms, which frequent disasters are floods (585 events) and account for over 50% of the total disasters. tropical cyclones (441 events), accounting for 30.35% and 22.88%, respectively, of all disasters in SEA in the past 39 years

Death toll Death toll

From 1980 to 2018, with the exception of From 1980 to 2018, there were significant large-scale disasters, the death toll in SEA differences in the death toll in SEA countries. exhibited a slight upward trend, with an average Indonesia and Myanmar had the largest death toll, annual increase of 34 people. Among all types of at 190,000 and 140,000, respectively. In the east disasters, tropical cyclones and earthquakes and west parts of the Indochina Peninsula and the caused the most deaths, with a total of 188,000 and Philippines, the death toll was mainly caused by 195,000 deaths, respectively, accounting for 93% tropical cyclones. Floods accounted for most of the of all population loss. Tropical cyclone disasters deaths elsewhere in the Indochina peninsula. In the dominated the death toll in SEA, and the southern part of SEA, the Indonesian islands, the typhoon-rainstorm-flood disaster chain causes a majority of the deaths were caused by large number of casualties every year. earthquakes.

Economic losses Economic losses

From 1980 to 2018, the direct economic losses From 1980 to 2018, countries in SEA showed from disasters in SEA showed an increasing trend, significant differences in disaster losses. The with an average annual increase of US$250 million, Philippines and Thailand suffered from the largest which is below the overall GDP growth rate of SEA economic loss, totaling more than US$104.3 billion (US$70 billion/year). Among all types of natural (2018 US$). East Timor and Singapore had the disasters, floods and tropical cyclones caused the smallest value, with a total of only US$4.23 million. largest share of economic losses, accounting for For countries in the west and east parts of the 46.12% and 26.10% of the total loss, respectively. Indochina Peninsula and in the northwest Pacific Ocean, economic losses were mainly caused by tropical cyclones. In the central region of the Indochina Peninsula, more than 80% of the disaster losses were caused by floods. In Malaysia, floods accounted for more than 60% of the total loss. The Indonesian Archipelago had a higher proportion of economic loss caused by earthquakes.

Special Report of Disaster and Risk in the Belt and Road Region 2019 09 Increasing disaster frequency and loss Significant regional and national differences 10

Occurrence frequency Occurrence frequency

From 1980 to 2018, the frequency of natural There are relatively small differences among SEA disasters in SEA increased by 0.94 events per year countries in the frequency of total disaster on average. Since 2000, the average annual occurrences. The Philippines and Indonesia occurrence of disasters is 49. The year that topped experienced more disasters (485 and 396 the number of annual disaster events was 2011, respectively), while Singapore had fewer disasters with 66. Even in the best years, there were still as due to its limited land area. The main types of many as 17 disasters that occurred. The most disasters in this region are floods and storms, which frequent disasters are floods (585 events) and account for over 50% of the total disasters. tropical cyclones (441 events), accounting for 30.35% and 22.88%, respectively, of all disasters in SEA in the past 39 years

Death toll Death toll

From 1980 to 2018, with the exception of From 1980 to 2018, there were significant large-scale disasters, the death toll in SEA differences in the death toll in SEA countries. exhibited a slight upward trend, with an average Indonesia and Myanmar had the largest death toll, annual increase of 34 people. Among all types of at 190,000 and 140,000, respectively. In the east disasters, tropical cyclones and earthquakes and west parts of the Indochina Peninsula and the caused the most deaths, with a total of 188,000 and Philippines, the death toll was mainly caused by 195,000 deaths, respectively, accounting for 93% tropical cyclones. Floods accounted for most of the of all population loss. Tropical cyclone disasters deaths elsewhere in the Indochina peninsula. In the dominated the death toll in SEA, and the southern part of SEA, the Indonesian islands, the typhoon-rainstorm-flood disaster chain causes a majority of the deaths were caused by large number of casualties every year. earthquakes.

Economic losses Economic losses

From 1980 to 2018, the direct economic losses From 1980 to 2018, countries in SEA showed from disasters in SEA showed an increasing trend, significant differences in disaster losses. The with an average annual increase of US$250 million, Philippines and Thailand suffered from the largest which is below the overall GDP growth rate of SEA economic loss, totaling more than US$104.3 billion (US$70 billion/year). Among all types of natural (2018 US$). East Timor and Singapore had the disasters, floods and tropical cyclones caused the smallest value, with a total of only US$4.23 million. largest share of economic losses, accounting for For countries in the west and east parts of the 46.12% and 26.10% of the total loss, respectively. Indochina Peninsula and in the northwest Pacific Ocean, economic losses were mainly caused by tropical cyclones. In the central region of the Indochina Peninsula, more than 80% of the disaster losses were caused by floods. In Malaysia, floods accounted for more than 60% of the total loss. The Indonesian Archipelago had a higher proportion of economic loss caused by earthquakes.

Special Report of Disaster and Risk in the Belt and Road Region 2019 11 Disaster Loss vs. Economic Development Threats from large-scale disasters 12

Global record-setting SEA is a typical disaster-prone area with frequent large-scale disasters. Since 1980, there have been several catastrophes very large-scale disasters, causing huge numbers of casualties and economic losses. Several of these events were among the deadliest or costliest disasters worldwide, including the 2004 Indian Ocean Death toll per million people Earthquake-Tsunami disaster, 2008 Tropical Storm Nargis, 2011 Thailand floods, and 2013 Super Typhoon Haiyan. The overall death toll in SEA due to disasters during 2010-2016 was 4.9 per million people, ranking at the top 24.6% among 131 countries and districts analyzed. Correspondingly, the GDP per capita of SEA is US$9,260 per person, ranking at The deadliest Economic the top 51.4% among the above countries and disasters in SEA Rank Date Affected Countries Type Death Toll Loss (US$bn) districts analyzed, which is relatively higher than since 1980 the ranking of the population loss. 1 2004.12.26 Indonesia, Thailand, Malaysia, Myanmar Earthquake 227,898 21.4

When the death toll per million people and GDP 2 2008.05.02 Myanmar Tropical Cyclone 138,366 16.1 per capita were plotted against each other, SEA 3 2013.11.08 Philippines Tropical Cyclone 7354 10.9 lies higher than the average (fitting line) of 131 countries and districts analyzed, and locates to the 4 1991.11.05 Philippines Tropical Cyclone 5956 0.3 upper left of China (lower developed level and 5 2006.05.26 Indonesia Earthquake 5778 4.3 Note: The death toll per million people presented in the figure is the annual average from 2010 to 2016, and higher mortality rate). It indicates that SEA’s ability its corresponding annual values are computed by dividing the death toll of a year by the population of the to control casualties in disasters falls relatively 6 1997.11.02 Vietnam Tropical Cyclone 3111 0.6 previous year. There were 131 countries and districts around the world that were included. The death toll behind its corresponding development level. data were obtained from the global disaster database of Catholic University of Leuven (Emergency Events 7 2018.09.28 Indonesia Earthquake 4340 1.0 Database [EM-DAT]; http://www.emdat.be/). Population and GDP (Purchase Power Parity GDP, GDP-PPP) data were obtained from World Bank (https://data.worldbank.org/). 8 1992.12.12 Indonesia Earthquake 2500 0.3

9 1990.07.16 Philippines Earthquake 2412 1.1

10 2012.12.04 Philippines Tropical Cyclone 1901 1.0

Note: Economic losses are measured with 2018 US$. Data listed considered various sources including EM-DAT, Swiss Re, and Wikipedia etc.

Direct economic losses as a share of GDP

The share of direct economic loss in GDP during The costliest disasters Economic 2010-2016 is 0.62%, ranking the top 15% in the in SEA since 1980 Rank Date Affected Countries Type Death Toll Loss (US$bn) 119 countries and districts analyzed. Correspondingly, the GDP per capita of SEA ranks 1 2011.08.05 Thailand Flood 813 46.1 in the top 56.6% in the 119 countries and districts 2 2004.12.26 Indonesia, Thailand, Malaysia, Myanmar Earthquake 227,898 21.4 analyzed, which is significantly higher than the GDP loss ratio. 3 2008.05.02 Myanmar Tropical Cyclone 138,366 16.1

4 2013.11.08 Philippines Tropical Cyclone 7354 10.9 When the share of direct economic loss in GDP and GDP per capita were plotted together, SEA lies 5 2006.05.26 Indonesia Earthquake 5778 4.3 higher than the average (fitting line) of the 119 countries and districts analyzed. SEA also locates 6 2012.12.04 Philippines Tropical Cyclone 1901 1.2 to the upper left of China, namely at a lower 7 1984.09.01 Philippines Tropical Cyclone 1399 1.2 development level and GDP loss rate. It indicates Note: The proportion of direct economic losses in GDP shown in the figure is the average from 2010 to 2016. that SEA’s ability to effectively prevent disaster 8 1990.07.16 Philippines Earthquake 2412 1.1 The data for the annual direct economic loss in each country and region over the years were obtained from damage and reduce economic losses falls behind the global disaster database of Catholic University of Leuven (EM-DAT; http://www.emdat.be/). The 9 2018.09.28 Indonesia Earthquake 4340 1.0 its corresponding level of development. population data were obtained from World Bank (https://data.worldbank.org/), and the GDP data comes from the world bank's GDP-PPP (Purchase Power Parity GDP) for 2018. 10 1997.11.02 Vietnam Tropical Cyclone 3111 0.6

Note: Economic losses are measured with 2018 US$. Data listed considered various sources including EM-DAT, Swiss Re, and Wikipedia etc.

Special Report of Disaster and Risk in the Belt and Road Region 2019 11 Disaster Loss vs. Economic Development Threats from large-scale disasters 12

Global record-setting SEA is a typical disaster-prone area with frequent large-scale disasters. Since 1980, there have been several catastrophes very large-scale disasters, causing huge numbers of casualties and economic losses. Several of these events were among the deadliest or costliest disasters worldwide, including the 2004 Indian Ocean Death toll per million people Earthquake-Tsunami disaster, 2008 Tropical Storm Nargis, 2011 Thailand floods, and 2013 Super Typhoon Haiyan. The overall death toll in SEA due to disasters during 2010-2016 was 4.9 per million people, ranking at the top 24.6% among 131 countries and districts analyzed. Correspondingly, the GDP per capita of SEA is US$9,260 per person, ranking at The deadliest Economic the top 51.4% among the above countries and disasters in SEA Rank Date Affected Countries Type Death Toll Loss (US$bn) districts analyzed, which is relatively higher than since 1980 the ranking of the population loss. 1 2004.12.26 Indonesia, Thailand, Malaysia, Myanmar Earthquake 227,898 21.4

When the death toll per million people and GDP 2 2008.05.02 Myanmar Tropical Cyclone 138,366 16.1 per capita were plotted against each other, SEA 3 2013.11.08 Philippines Tropical Cyclone 7354 10.9 lies higher than the average (fitting line) of 131 countries and districts analyzed, and locates to the 4 1991.11.05 Philippines Tropical Cyclone 5956 0.3 upper left of China (lower developed level and 5 2006.05.26 Indonesia Earthquake 5778 4.3 Note: The death toll per million people presented in the figure is the annual average from 2010 to 2016, and higher mortality rate). It indicates that SEA’s ability its corresponding annual values are computed by dividing the death toll of a year by the population of the to control casualties in disasters falls relatively 6 1997.11.02 Vietnam Tropical Cyclone 3111 0.6 previous year. There were 131 countries and districts around the world that were included. The death toll behind its corresponding development level. data were obtained from the global disaster database of Catholic University of Leuven (Emergency Events 7 2018.09.28 Indonesia Earthquake 4340 1.0 Database [EM-DAT]; http://www.emdat.be/). Population and GDP (Purchase Power Parity GDP, GDP-PPP) data were obtained from World Bank (https://data.worldbank.org/). 8 1992.12.12 Indonesia Earthquake 2500 0.3

9 1990.07.16 Philippines Earthquake 2412 1.1

10 2012.12.04 Philippines Tropical Cyclone 1901 1.0

Note: Economic losses are measured with 2018 US$. Data listed considered various sources including EM-DAT, Swiss Re, and Wikipedia etc.

Direct economic losses as a share of GDP

The share of direct economic loss in GDP during The costliest disasters Economic 2010-2016 is 0.62%, ranking the top 15% in the in SEA since 1980 Rank Date Affected Countries Type Death Toll Loss (US$bn) 119 countries and districts analyzed. Correspondingly, the GDP per capita of SEA ranks 1 2011.08.05 Thailand Flood 813 46.1 in the top 56.6% in the 119 countries and districts 2 2004.12.26 Indonesia, Thailand, Malaysia, Myanmar Earthquake 227,898 21.4 analyzed, which is significantly higher than the GDP loss ratio. 3 2008.05.02 Myanmar Tropical Cyclone 138,366 16.1

4 2013.11.08 Philippines Tropical Cyclone 7354 10.9 When the share of direct economic loss in GDP and GDP per capita were plotted together, SEA lies 5 2006.05.26 Indonesia Earthquake 5778 4.3 higher than the average (fitting line) of the 119 countries and districts analyzed. SEA also locates 6 2012.12.04 Philippines Tropical Cyclone 1901 1.2 to the upper left of China, namely at a lower 7 1984.09.01 Philippines Tropical Cyclone 1399 1.2 development level and GDP loss rate. It indicates Note: The proportion of direct economic losses in GDP shown in the figure is the average from 2010 to 2016. that SEA’s ability to effectively prevent disaster 8 1990.07.16 Philippines Earthquake 2412 1.1 The data for the annual direct economic loss in each country and region over the years were obtained from damage and reduce economic losses falls behind the global disaster database of Catholic University of Leuven (EM-DAT; http://www.emdat.be/). The 9 2018.09.28 Indonesia Earthquake 4340 1.0 its corresponding level of development. population data were obtained from World Bank (https://data.worldbank.org/), and the GDP data comes from the world bank's GDP-PPP (Purchase Power Parity GDP) for 2018. 10 1997.11.02 Vietnam Tropical Cyclone 3111 0.6

Note: Economic losses are measured with 2018 US$. Data listed considered various sources including EM-DAT, Swiss Re, and Wikipedia etc.

Special Report of Disaster and Risk in the Belt and Road Region 2019 13 Earthquake-Tsunami Disaster: 2004 Indian Ocean Earthquake–Tsunami Tropical Storm: Cyclone Nargis, Myanmar, 2008 14

The 2004 Indian Ocean earthquake and tsunami (also known as the Disaster loss Cyclone Nargis developed on April 27, 2008 in the central area of the Boxing Day Tsunami) occurred on 26 December, with an epicenter Bay of Bengal. Its peak wind speed reached 200 km/h on May 2. The Division Town Death Missing off the west coast of northern Sumatra Island. It triggered a tsunami cyclone made landfall in the Ayeyarwady Division of Myanmar, and Casualties: According to the US Geological Survey, this with wave heights up to 30 meters. The earthquake-tsunami disaster earthquake-tsunami caused a death toll of 227,898, making it the the storm gradually weakened until dissipating near the border of Napudaw 4178 10 killed 220,000 people in 14 countries, and had serious impacts on Myanmar and Thailand. Nargis caused nearly 85,000 deaths and deadliest disaster to date. Most of the loss of life was caused by Labutta 33344 48464 the Indian Ocean coast. This disaster is also the world’s deadliest tsunami, and occurred near Sumatra, Indonesia. 54,000 missing in the Ayeyarwady Delta. It was the most severe event since 1980. natural disaster thus far in Myanmar, and its casualties rank second in Mawgyun 5250 2127 Ayeyarwady SEA. Economic losses: The total economic losses were estimated at $14 Phyarpone 1258 10 billion, 75% of which came from Indonesia, Thailand, Sri Lanka, and Bogale 34744 3198 India. These losses include damage to residential houses, The intensification and characteristics of Nargis commercial buildings, infrastructures including roads, water supply Kyeik Latt 12 - Two intensifying processes: Nargis intensified into a super tropical systems, power systems, schools, hospitals, and other medical Dadeye 4111 19 facilities. The most devastating impact occurred in Indonesia, storm on the afternoon of April 29, with a maximum lasting wind especially in Banda Aceh, with a total economic loss of $4.5 billion speed of 200 km/h and a maximum central wind scale of 12. The Sub-total 82897 53828 (original values). other was on May 1, when it once again intensified into a super Thanlynn 3 7 tropical storm. The storm landed in the Ayeyarwady Division of Myanmar on May 2, with a central wind scale of 16. Kyauktan 13 - Economic Insurance GDP share of direct Kayan 1 - Country loss ($ million) loss ($ million) economic losses Heavy rainfall with storm surge occurred, and the total rainfall in Thone Kwa 6 - parts of the Ayeyarwady Division of Myanmar was over 600 mm, Indonesia 4,500 500 2.61% more than twice that of the average in the same period in history. The Yangon Twantay 25 - cyclone caused severe storm surges, with tidal levels reaching 3.5 Thailand 1,000 500 0.32% Kawhmu 130 - m in some areas. Kungyangon 1446 - Sri Lanka 1,000 100 6.04% Dala 14 1 India 1,000 100 0.29% Seikkyi Kanaungto 2 - Maldives 1,000 50 65.47% Sub-total 1640 8

Sources: Risk Management Solutions, Managing Tsunami Risk in the Aftermath of the 2004 Total 84537 53836 Indian Ocean Earthquake & Tsunami Source: Government of the Union of Myanmar, ASEAN and UN. 2008. Post-Nargis Joint Factors contributed to devastating loss Assessment.

Extreme intensity: With a magnitude of 9.3, the main shock became Factors contributed to devastating loss Banda Aceh, Sumatra, Indonesia – before and after the Boxing Day tsunami in 2004 (Source: DigitalGlobe ) the largest earthquake since the 1964 M9.2 in Alaska and the second largest to date (the largest was the 1960 Chile M9.3 earthquake). This Extreme rainfall and huge storm surge. The landing point of the tsunami landed at a wave height of 24 m and penetrated more than 2 Ayeyarwady River Delta is less than 5 m, and the total rainfall Earthquake-tsunami process km inland. exceeded 600 mm. This triggered a storm surge of 3.5 m, and caused a flood that inundated nearly 50% of the houses in low-lying Earthquake: The main shock occurred at 00:58:53 UTC on December The lack of early-warning systems: There was no tsunami monitoring areas and destroyed power and transportation facilities. 26, 2004. The hypo center was approximately 160km north of the or early-warning systems in the Indian Ocean in 2004. No tsunami Indian Ocean to the north of Simeulue Island on the west coast of warnings were issued in countries where the tsunami wave travelled High exposure and vulnerability. The Ayeyarwady Delta has a large Sumatra. The focal depth was 30km below the mean sea level, and Track and intensity of Nargis population density, and its economy is dominated by agriculture and for more than one hour before it arrived at its destination, such as Source: https://earthobservatory.nasa.gov/images/8727/heavy-rain-from-cyclone-nargis the magnitude was 9.3 on the Richter scale. The epicenter was Thailand, India, and Sri Lanka. Most people (including foreign fisheries. The rural residents accounted for the majority, and the located approximately 250km south-southeast of Banda Aceh, the tourists) in the disaster areas were not aware that the changes in transportation and economy were relatively undeveloped. In the capital of the Aceh province in northern Sumatra, Indonesia. The water levels on the beaches were indicating that a tsunami was The losses caused by Nargis coastal areas with flat terrain, mangroves were deforested, no dikes main fault rupture zone was 90 km wide and extended along the 1200 imminent, and they also had little knowledge of preparedness and were built, and there were no risk assessment measures or km fault to the Andaman island chain (Aon Benfield, 2015). evacuation. Therefore, this disaster reveals that severe problems Nargis had a severe impact on Yangon, Ayeyarwady, Pegu, Mon emergency plans. developed because there was no monitoring for tsunamis and no State, and Karen in Myanmar. By June 24, 2008, there were 84,537 Tsunami: The earthquake triggered a huge tsunami, affecting almost early-warning system was in place to inform the public and effectively people who were killed, 53,836 were missing, and 19,359 were Insufficient awareness of the local residents.The Meteorological all countries and districts around the Indian Ocean. The affected carry out a large-scale evacuation. injured; 2.4 million people was severely affected, 800,000 became Department of Myanmar issued a weather warning 6 days before the coastline was over 15,000km in length. It took from 15 minutes to 7 homeless, and 260,000 were living in resettlement sites. The direct storm’s landing. The Meteorological and Hydrological Bureau issued hours for the tsunami to reach the shorelines. On January 13, 2005, then Secretary-General Annan of the United economic loss was up to US$10 billion (original value). a notice of a strong tropical storm on April 27, and sent a briefing to Nations called for the establishment of a global disaster warning the national media on May 1. On the day of the storm landing (May 2), The maximum wave height of the tsunami was up to 30m (on the west system. In 2008, a global tsunami monitoring network containing 39 the storm was featured in all the headlines and stories in the local side of Banda Aceh, Indonesia). The wave height in southwestern deep-sea observatories was established. It publishes real-time sea newspapers. However, Nargis was the first strong tropical storm to Thailand was 4 to 8m. In the eastern part of Sri Lanka, the height was level fluctuation monitoring data to help countries effectively cope land in Myanmar in 40 years, and as a result, the public's awareness between 2.5 and 12m, with an average height of 5m. On the with tsunami disasters. of disaster prevention was very weak, the experience of disaster southeast coast of India, the tsunami wave averaged 3.5m. evacuation was nearly absent, and there was no effective response or preparation measures.

Special Report of Disaster and Risk in the Belt and Road Region 2019 13 Earthquake-Tsunami Disaster: 2004 Indian Ocean Earthquake–Tsunami Tropical Storm: Cyclone Nargis, Myanmar, 2008 14

The 2004 Indian Ocean earthquake and tsunami (also known as the Disaster loss Cyclone Nargis developed on April 27, 2008 in the central area of the Boxing Day Tsunami) occurred on 26 December, with an epicenter Bay of Bengal. Its peak wind speed reached 200 km/h on May 2. The Division Town Death Missing off the west coast of northern Sumatra Island. It triggered a tsunami cyclone made landfall in the Ayeyarwady Division of Myanmar, and Casualties: According to the US Geological Survey, this with wave heights up to 30 meters. The earthquake-tsunami disaster earthquake-tsunami caused a death toll of 227,898, making it the the storm gradually weakened until dissipating near the border of Napudaw 4178 10 killed 220,000 people in 14 countries, and had serious impacts on Myanmar and Thailand. Nargis caused nearly 85,000 deaths and deadliest disaster to date. Most of the loss of life was caused by Labutta 33344 48464 the Indian Ocean coast. This disaster is also the world’s deadliest tsunami, and occurred near Sumatra, Indonesia. 54,000 missing in the Ayeyarwady Delta. It was the most severe event since 1980. natural disaster thus far in Myanmar, and its casualties rank second in Mawgyun 5250 2127 Ayeyarwady SEA. Economic losses: The total economic losses were estimated at $14 Phyarpone 1258 10 billion, 75% of which came from Indonesia, Thailand, Sri Lanka, and Bogale 34744 3198 India. These losses include damage to residential houses, The intensification and characteristics of Nargis commercial buildings, infrastructures including roads, water supply Kyeik Latt 12 - Two intensifying processes: Nargis intensified into a super tropical systems, power systems, schools, hospitals, and other medical Dadeye 4111 19 facilities. The most devastating impact occurred in Indonesia, storm on the afternoon of April 29, with a maximum lasting wind especially in Banda Aceh, with a total economic loss of $4.5 billion speed of 200 km/h and a maximum central wind scale of 12. The Sub-total 82897 53828 (original values). other was on May 1, when it once again intensified into a super Thanlynn 3 7 tropical storm. The storm landed in the Ayeyarwady Division of Myanmar on May 2, with a central wind scale of 16. Kyauktan 13 - Economic Insurance GDP share of direct Kayan 1 - Country loss ($ million) loss ($ million) economic losses Heavy rainfall with storm surge occurred, and the total rainfall in Thone Kwa 6 - parts of the Ayeyarwady Division of Myanmar was over 600 mm, Indonesia 4,500 500 2.61% more than twice that of the average in the same period in history. The Yangon Twantay 25 - cyclone caused severe storm surges, with tidal levels reaching 3.5 Thailand 1,000 500 0.32% Kawhmu 130 - m in some areas. Kungyangon 1446 - Sri Lanka 1,000 100 6.04% Dala 14 1 India 1,000 100 0.29% Seikkyi Kanaungto 2 - Maldives 1,000 50 65.47% Sub-total 1640 8

Sources: Risk Management Solutions, Managing Tsunami Risk in the Aftermath of the 2004 Total 84537 53836 Indian Ocean Earthquake & Tsunami Source: Government of the Union of Myanmar, ASEAN and UN. 2008. Post-Nargis Joint Factors contributed to devastating loss Assessment.

Extreme intensity: With a magnitude of 9.3, the main shock became Factors contributed to devastating loss Banda Aceh, Sumatra, Indonesia – before and after the Boxing Day tsunami in 2004 (Source: DigitalGlobe ) the largest earthquake since the 1964 M9.2 in Alaska and the second largest to date (the largest was the 1960 Chile M9.3 earthquake). This Extreme rainfall and huge storm surge. The landing point of the tsunami landed at a wave height of 24 m and penetrated more than 2 Ayeyarwady River Delta is less than 5 m, and the total rainfall Earthquake-tsunami process km inland. exceeded 600 mm. This triggered a storm surge of 3.5 m, and caused a flood that inundated nearly 50% of the houses in low-lying Earthquake: The main shock occurred at 00:58:53 UTC on December The lack of early-warning systems: There was no tsunami monitoring areas and destroyed power and transportation facilities. 26, 2004. The hypo center was approximately 160km north of the or early-warning systems in the Indian Ocean in 2004. No tsunami Indian Ocean to the north of Simeulue Island on the west coast of warnings were issued in countries where the tsunami wave travelled High exposure and vulnerability. The Ayeyarwady Delta has a large Sumatra. The focal depth was 30km below the mean sea level, and Track and intensity of Nargis population density, and its economy is dominated by agriculture and for more than one hour before it arrived at its destination, such as Source: https://earthobservatory.nasa.gov/images/8727/heavy-rain-from-cyclone-nargis the magnitude was 9.3 on the Richter scale. The epicenter was Thailand, India, and Sri Lanka. Most people (including foreign fisheries. The rural residents accounted for the majority, and the located approximately 250km south-southeast of Banda Aceh, the tourists) in the disaster areas were not aware that the changes in transportation and economy were relatively undeveloped. In the capital of the Aceh province in northern Sumatra, Indonesia. The water levels on the beaches were indicating that a tsunami was The losses caused by Nargis coastal areas with flat terrain, mangroves were deforested, no dikes main fault rupture zone was 90 km wide and extended along the 1200 imminent, and they also had little knowledge of preparedness and were built, and there were no risk assessment measures or km fault to the Andaman island chain (Aon Benfield, 2015). evacuation. Therefore, this disaster reveals that severe problems Nargis had a severe impact on Yangon, Ayeyarwady, Pegu, Mon emergency plans. developed because there was no monitoring for tsunamis and no State, and Karen in Myanmar. By June 24, 2008, there were 84,537 Tsunami: The earthquake triggered a huge tsunami, affecting almost early-warning system was in place to inform the public and effectively people who were killed, 53,836 were missing, and 19,359 were Insufficient awareness of the local residents.The Meteorological all countries and districts around the Indian Ocean. The affected carry out a large-scale evacuation. injured; 2.4 million people was severely affected, 800,000 became Department of Myanmar issued a weather warning 6 days before the coastline was over 15,000km in length. It took from 15 minutes to 7 homeless, and 260,000 were living in resettlement sites. The direct storm’s landing. The Meteorological and Hydrological Bureau issued hours for the tsunami to reach the shorelines. On January 13, 2005, then Secretary-General Annan of the United economic loss was up to US$10 billion (original value). a notice of a strong tropical storm on April 27, and sent a briefing to Nations called for the establishment of a global disaster warning the national media on May 1. On the day of the storm landing (May 2), The maximum wave height of the tsunami was up to 30m (on the west system. In 2008, a global tsunami monitoring network containing 39 the storm was featured in all the headlines and stories in the local side of Banda Aceh, Indonesia). The wave height in southwestern deep-sea observatories was established. It publishes real-time sea newspapers. However, Nargis was the first strong tropical storm to Thailand was 4 to 8m. In the eastern part of Sri Lanka, the height was level fluctuation monitoring data to help countries effectively cope land in Myanmar in 40 years, and as a result, the public's awareness between 2.5 and 12m, with an average height of 5m. On the with tsunami disasters. of disaster prevention was very weak, the experience of disaster southeast coast of India, the tsunami wave averaged 3.5m. evacuation was nearly absent, and there was no effective response or preparation measures.

Special Report of Disaster and Risk in the Belt and Road Region 2019 15 Typhoon-Rainstorm Disaster: Super Typhoon Haiyan, 2013 Rainstorm-flood disaster: 2011 floods in Thailand 16

Super Typhoon Haiyan (also known as Tropical Storm Yolanda), was The loss from Haiyan From July 2011 to January 2012, continuous monsoon rainfall and The disaster had a profound impact on Thailand's overall economic formed in the western Pacific on the morning of November 2, 2013. It multiple tropical storms resulted in rivers that burst their banks, and growth. The Office of Fiscal Policy forecasted an annual GDP growth landed in the Philippines on November 8, then successively made Haiyan affected 41 provinces of the Philippines, which affected flooding that occurred in the central, northeast, and northern rate of 4.5%, but revised this to 1.7% at the peak period of the flood, landfall in Vietnam and China, and finally dissipated in Guangxi more than 12.2 million people, resulting in 6,009 deaths, 27,022 provinces of Thailand. The floods inundated two-thirds of the and issued an actual rate of 1.1%. More than 1.5 trillion baht (US$50 Province, China, on November 11. Haiyan broke the record of injuries, and 1,779 missing. Nearly 600,000 houses were completely country, destroyed more than 20 thousand km2 of farmlands, killed billion) was required for recovery and reconstruction. typhoon Megi in 2010 in terms of intensity, and became the second destroyed, which resulted in nearly 4 million people becoming 815 people (3 missing), affected 13.6 million people, and caused strongest tropical cyclone recorded in the northwest Pacific Ocean homeless. The economic loss was estimated to be US$3.64 billion 1.425 trillion baht (US$ 46.5 billion) of economic loss. The flood after typhoon Tip in 1979. It is also set a world record for the typhoon disrupted the manufacturing supply chain, severely affected global (original value) in the Philippines. Local power, communication, and Economic loss with the highest wind speed upon landfall. car production, and led to global shortages of computer magnetic Departments Notes water supply systems were severely damaged, and many provinces (Billion Thai baht) in the central region were unable to communicate with the outside. hard disks, and a fall in global industrial production by 2.5%. Most of the losses occurred Manufacturing 1007 The characteristics of Super Typhoon Haiyan in industrial plants Chao phraya river in Ayutthaya Chao phraya river in Ayutthaya Lost tourism revenue Fast-moving speed. Haiyan moved at a speed of 30-35 km/h province⸺july 11,2011 province⸺October 23,2011 Tourism 95 horizontally for most of the time (15-20 km/h is the average for most in six months tropical cyclones), 35-40 km/h when it was in the Philippines, and Includes structural and Housing/ 84 40-45 km/h when it was south of China's Xisha Islands; sometimes personal property indoor property damage its speed went beyond 50 km/h. Its rapid movement reduced the amount of time for effective warnings in the Philippines, and warning Agriculture 40 Agricultural production loss upgrades had to be rushed.

Large-scale strong rainfall. Before and after the typhoon landed, the Industry/manufacturing: A total of 9,859 factories were slightly daily precipitation in most parts of the Philippines exceeded 100 damaged and 7,510 industrial and manufacturing factories were mm, and in some areas, it exceeded 200 mm. On November 5-12, damaged by the floods. Thailand's industrial production index fell 2013, the total rainfall of Leyte Island in the north-central Philippines 35.8% in November from a year earlier. Auto production fell by 61.3%, was over 500 mm, and it exceeded 685 mm in the southeast corner. hard disk production fell by 52.4%, and electronic parts

Rainstorms south of the Yangtze River and in southern China were Flood inundation in Ayutthaya Province in 2011 Thailand flood manufacturing declined by 45.5%. In the fourth quarter of the year, affected by Haiyan and lasted for 3 days. The total rainfall in most Source: NASA. national exports decreased by US$7.9 billion as floods hampered parts of Hainan, central and southern Guangxi, southwestern manufacturing production (Aon Benfield, 2012). Guangdong, and central Jiangxi of China exceeded 100 mm, and Source: Philippines National Disaster Risk Reduction and Management Council and The rainstorm and flood process the cumulative rainfall in northwestern Guangxi reached 357 mm. USAID, 2013 Factors contributing to the devastating loss Precipitation: The precipitation in Thailand from January to October The sea surface where the eye of A huge storm surge was triggered. Factors contributed to devastating loss in 2011 was 1,781 mm, the highest since 1961. It was also 35% Haiyan passed through is subject to strong low pressure, and then The coupling of rainfall pattern and topography. The area affected by higher than the multi-annual average for the same period over the this flood was mainly the Chao Phraya river basin in Thailand. In the superimposed with high tide and large waves as the storm changes The hazard intensity was very high for this typhoon. Haiyan had a past 50 years. The total rainfall from July to September was 1156 upper reaches, the terrain is steep, the river is narrow and swift, and its path. This formed a huge storm surge of 6 m, which almost lasting wind speed of 89 m/s upon landing, total rainfall up to 500 mm, the highest since records began in 1901. The largest positive the runoff speed is fast. Excessive rainfall in the upper reaches of the completely destroyed the buildings, transportation, and power mm in some areas, fast movement speed (35-40 km/h), and huge anomaly occurred in the south, while the northern regions received river from the monsoon and tropical storms put enormous pressure facilities in the coastal area. Storm surge is the main reason for the impact area (Philippines, South Vietnam, and China). Because of its 600 mm more rain than the average amount (Gale and Saunders, on the reservoirs, forcing them to release water at a critical moment. deaths and losses caused by Haiyan. intensity, it was estimated to be the type of typhoon that would occur 2013). The middle and southern part of the basin is relatively flat (the slope only once every 100 years. A storm surge of up to 6 m was formed is only 1.5 m/100 km), and the flow rate is rather slow. Consequently, in the Philippines, and it penetrated up to 1 km inland. Flood: The unusual precipitation led to the outburst of flooding. Over a massive inundation occurred due to the flooding. Land time, the flooded area moved southward. In late July, flash floods development greatly increased the amount of impermeable areas, Low prevention capability. The Philippines has a population of more affected many provinces in northern and northeastern Thailand. At occupied floodplains, and decreased the capacity of the than 100 million, and nearly 40% live in coastal cities that are prone the end of August, the flood reached a depth of 50 cm in the center environment to compensate for the flooding. Together with the to typhoons. Most of the buildings in the coastal areas are of Nangfu, breaking the 16-year record in Fisanock province. In influence of the topography and sea level, the water level did not constructed of light materials such as wood and thatch. The coastal October, most of Thailand's dams were reaching or exceeding their recede, which caused the flooding to last for a long time. wave protection facilities, urban drainage systems, and power and maximum capacity, forcing them to increase the discharge rate, transportation facilities are also very poor, causing delays, fatigue, which further exacerbated downstream flooding. Seven industrial Loss amplified by globalization. With the continuous progress of and low efficiency in pre-disaster relocation and post-disaster districts in and around Bangkok were flooded, and manufacturing globalization, Thailand has become a critical node in the global rescue. supply chains were severely disrupted. production and supply network. Local impacts in Thailand spread to other countries and districts along the tightly linked production and Week emergency response. The Philippines Meteorological supply chains, and had ripple-spreading effects among the upper, Department classified Haiyan as a typhoon 41 hours later than the Disaster losses middle, and lower parts of a chain, or even lead to inter-industry China National Meteorological Center and 36 hours later than the effects. The 2011 floods in Thailand actually reduced global industrial United States Joint Typhoon Warning Center. In addition, the first The 2011 floods affected 64 of Thailand's 77 provinces, with 2.5 Track and intensity of typhoon Haiyan production by 2.5%. In the fourth quarter of 2011 and the first quarter warning was issued at 23:00 on the night of November 6, and most million people needing evacuation, 13.6 million affected, 815 dead, 3 Source: NASA,2013 of 2012, hard disks were in short supply worldwide, and there was a people were actually informed on the morning of November 7, when missing, and 1.9 million households with house damage. According sharp increase in their prices. the situation had become very serious, and the effective evacuation to the World Bank, the estimated direct economic losses from the time left was less than 10 h. flood totaled 1.4 trillion baht (US$45.7 billion, original value). The private sector suffered 90% of the total loss, with only 6% in the public sector (Aon Benfield, 2012).

Special Report of Disaster and Risk in the Belt and Road Region 2019 15 Typhoon-Rainstorm Disaster: Super Typhoon Haiyan, 2013 Rainstorm-flood disaster: 2011 floods in Thailand 16

Super Typhoon Haiyan (also known as Tropical Storm Yolanda), was The loss from Haiyan From July 2011 to January 2012, continuous monsoon rainfall and The disaster had a profound impact on Thailand's overall economic formed in the western Pacific on the morning of November 2, 2013. It multiple tropical storms resulted in rivers that burst their banks, and growth. The Office of Fiscal Policy forecasted an annual GDP growth landed in the Philippines on November 8, then successively made Haiyan affected 41 provinces of the Philippines, which affected flooding that occurred in the central, northeast, and northern rate of 4.5%, but revised this to 1.7% at the peak period of the flood, landfall in Vietnam and China, and finally dissipated in Guangxi more than 12.2 million people, resulting in 6,009 deaths, 27,022 provinces of Thailand. The floods inundated two-thirds of the and issued an actual rate of 1.1%. More than 1.5 trillion baht (US$50 Province, China, on November 11. Haiyan broke the record of injuries, and 1,779 missing. Nearly 600,000 houses were completely country, destroyed more than 20 thousand km2 of farmlands, killed billion) was required for recovery and reconstruction. typhoon Megi in 2010 in terms of intensity, and became the second destroyed, which resulted in nearly 4 million people becoming 815 people (3 missing), affected 13.6 million people, and caused strongest tropical cyclone recorded in the northwest Pacific Ocean homeless. The economic loss was estimated to be US$3.64 billion 1.425 trillion baht (US$ 46.5 billion) of economic loss. The flood after typhoon Tip in 1979. It is also set a world record for the typhoon disrupted the manufacturing supply chain, severely affected global (original value) in the Philippines. Local power, communication, and Economic loss with the highest wind speed upon landfall. car production, and led to global shortages of computer magnetic Departments Notes water supply systems were severely damaged, and many provinces (Billion Thai baht) in the central region were unable to communicate with the outside. hard disks, and a fall in global industrial production by 2.5%. Most of the losses occurred Manufacturing 1007 The characteristics of Super Typhoon Haiyan in industrial plants Chao phraya river in Ayutthaya Chao phraya river in Ayutthaya Lost tourism revenue Fast-moving speed. Haiyan moved at a speed of 30-35 km/h province⸺july 11,2011 province⸺October 23,2011 Tourism 95 horizontally for most of the time (15-20 km/h is the average for most in six months tropical cyclones), 35-40 km/h when it was in the Philippines, and Includes structural and Housing/ 84 40-45 km/h when it was south of China's Xisha Islands; sometimes personal property indoor property damage its speed went beyond 50 km/h. Its rapid movement reduced the amount of time for effective warnings in the Philippines, and warning Agriculture 40 Agricultural production loss upgrades had to be rushed.

Large-scale strong rainfall. Before and after the typhoon landed, the Industry/manufacturing: A total of 9,859 factories were slightly daily precipitation in most parts of the Philippines exceeded 100 damaged and 7,510 industrial and manufacturing factories were mm, and in some areas, it exceeded 200 mm. On November 5-12, damaged by the floods. Thailand's industrial production index fell 2013, the total rainfall of Leyte Island in the north-central Philippines 35.8% in November from a year earlier. Auto production fell by 61.3%, was over 500 mm, and it exceeded 685 mm in the southeast corner. hard disk production fell by 52.4%, and electronic parts

Rainstorms south of the Yangtze River and in southern China were Flood inundation in Ayutthaya Province in 2011 Thailand flood manufacturing declined by 45.5%. In the fourth quarter of the year, affected by Haiyan and lasted for 3 days. The total rainfall in most Source: NASA. national exports decreased by US$7.9 billion as floods hampered parts of Hainan, central and southern Guangxi, southwestern manufacturing production (Aon Benfield, 2012). Guangdong, and central Jiangxi of China exceeded 100 mm, and Source: Philippines National Disaster Risk Reduction and Management Council and The rainstorm and flood process the cumulative rainfall in northwestern Guangxi reached 357 mm. USAID, 2013 Factors contributing to the devastating loss Precipitation: The precipitation in Thailand from January to October The sea surface where the eye of A huge storm surge was triggered. Factors contributed to devastating loss in 2011 was 1,781 mm, the highest since 1961. It was also 35% Haiyan passed through is subject to strong low pressure, and then The coupling of rainfall pattern and topography. The area affected by higher than the multi-annual average for the same period over the this flood was mainly the Chao Phraya river basin in Thailand. In the superimposed with high tide and large waves as the storm changes The hazard intensity was very high for this typhoon. Haiyan had a past 50 years. The total rainfall from July to September was 1156 upper reaches, the terrain is steep, the river is narrow and swift, and its path. This formed a huge storm surge of 6 m, which almost lasting wind speed of 89 m/s upon landing, total rainfall up to 500 mm, the highest since records began in 1901. The largest positive the runoff speed is fast. Excessive rainfall in the upper reaches of the completely destroyed the buildings, transportation, and power mm in some areas, fast movement speed (35-40 km/h), and huge anomaly occurred in the south, while the northern regions received river from the monsoon and tropical storms put enormous pressure facilities in the coastal area. Storm surge is the main reason for the impact area (Philippines, South Vietnam, and China). Because of its 600 mm more rain than the average amount (Gale and Saunders, on the reservoirs, forcing them to release water at a critical moment. deaths and losses caused by Haiyan. intensity, it was estimated to be the type of typhoon that would occur 2013). The middle and southern part of the basin is relatively flat (the slope only once every 100 years. A storm surge of up to 6 m was formed is only 1.5 m/100 km), and the flow rate is rather slow. Consequently, in the Philippines, and it penetrated up to 1 km inland. Flood: The unusual precipitation led to the outburst of flooding. Over a massive inundation occurred due to the flooding. Land time, the flooded area moved southward. In late July, flash floods development greatly increased the amount of impermeable areas, Low prevention capability. The Philippines has a population of more affected many provinces in northern and northeastern Thailand. At occupied floodplains, and decreased the capacity of the than 100 million, and nearly 40% live in coastal cities that are prone the end of August, the flood reached a depth of 50 cm in the center environment to compensate for the flooding. Together with the to typhoons. Most of the buildings in the coastal areas are of Nangfu, breaking the 16-year record in Fisanock province. In influence of the topography and sea level, the water level did not constructed of light materials such as wood and thatch. The coastal October, most of Thailand's dams were reaching or exceeding their recede, which caused the flooding to last for a long time. wave protection facilities, urban drainage systems, and power and maximum capacity, forcing them to increase the discharge rate, transportation facilities are also very poor, causing delays, fatigue, which further exacerbated downstream flooding. Seven industrial Loss amplified by globalization. With the continuous progress of and low efficiency in pre-disaster relocation and post-disaster districts in and around Bangkok were flooded, and manufacturing globalization, Thailand has become a critical node in the global rescue. supply chains were severely disrupted. production and supply network. Local impacts in Thailand spread to other countries and districts along the tightly linked production and Week emergency response. The Philippines Meteorological supply chains, and had ripple-spreading effects among the upper, Department classified Haiyan as a typhoon 41 hours later than the Disaster losses middle, and lower parts of a chain, or even lead to inter-industry China National Meteorological Center and 36 hours later than the effects. The 2011 floods in Thailand actually reduced global industrial United States Joint Typhoon Warning Center. In addition, the first The 2011 floods affected 64 of Thailand's 77 provinces, with 2.5 Track and intensity of typhoon Haiyan production by 2.5%. In the fourth quarter of 2011 and the first quarter warning was issued at 23:00 on the night of November 6, and most million people needing evacuation, 13.6 million affected, 815 dead, 3 Source: NASA,2013 of 2012, hard disks were in short supply worldwide, and there was a people were actually informed on the morning of November 7, when missing, and 1.9 million households with house damage. According sharp increase in their prices. the situation had become very serious, and the effective evacuation to the World Bank, the estimated direct economic losses from the time left was less than 10 h. flood totaled 1.4 trillion baht (US$45.7 billion, original value). The private sector suffered 90% of the total loss, with only 6% in the public sector (Aon Benfield, 2012).

Special Report of Disaster and Risk in the Belt and Road Region 2019 03Severe threats from earthquakes and volcanos 03Severe threats from earthquakes and volcanos 19 Earthquake disasters Volcanic disasters 20

Distribution of active faults Number of volcanic eruptions and earthquakes from 1900 to 2018

There are eight major active faults in SEA. Most of On average, there were 7.5 volcanic eruptions them are distributed around the Philippines and every year. Indonesia. The two longest active faults are the Sumatra and Philippine Faults. The Sumatra Fault There were 5 volcanos, 6.0% of the total, with the was formed by the collision of the Eurasian and number of eruptions equal to or greater than 35.

Indian plates, and the Philippine Fault was formed There were 10 volcanos, 11.9% of the total, with the by the amalgamation of the Eurasian and Philippine number of eruptions from 20 to 34. plates. From 1900 to 2018, there were 236 earthquakes of magnitude 7.0 or above that There were 14 volcanos, 16.7% of the total, with the occurred in Southeast Asia, of which approximately number of eruptions from 10 to 19.

73% occurred in Indonesia and the Philippines, There were 12 volcanos, 14.3% of the total, with the and approximately 4.6% occurred in Myanmar. number of eruptions from 5 to 9.

There were 43 volcanos, 51.2% of the total, with the number of eruptions less than 5.

Number of people affected by volcanic eruptions from 1900 Seismic hazard map to 2018

Areas subject to light potential earthquake damage On average, 26,407 persons were affected by (with peak ground acceleration with a return period volcanic eruptions every year.

of 475 years, PGA, < 0.18 g) are distributed in There were 4 volcanic eruptions, 16.0% of the total, Thailand, Laos, Vietnam, Singapore, and with the affected population larger than 200,000. Kalimantan Island of Indonesia. Areas subject to moderate potential for seismic damage (PGA There were 7 volcanic eruptions, 28.0% of the total, ranging from 0.18 to 0.34 g) include most parts of with the affected population from 50,000 to 200,000.

Myanmar. Areas subject to moderate-to-heavy There were 6 volcanic eruptions, 24.0% of the total, potential for seismic damage (PGA ranging from with the affected population from 10,000 to 50,000. 0.34 to 0.65 g) include the Arakan Mountains and the western side of the Shan Plateau in Myanmar, There were 8 volcanic eruptions, 32.0% of the total, the Barisan Mountains in Sumatra Island in with the affected population less than 10,000. Indonesia, and East Timor. In areas where the PGA is greater than 0.65 g, mainly the Philippines, the Note: PGA < 0.092g, the potential earthquake damage is very light; 0.092 g < PGA < 0.18 g, the potential earthquake damage is light; 0.18 g < PGA <0.34 g, the potential earthquake damage is potential for seismic damage is very heavy. moderate; 0.34 g < PGA < 0.65 g, the potential earthquake damage is from moderate to heavy; 0.65 g Death toll from volcanic eruptions < PGA < 1.24 g, the potential earthquake damage is heavy; PGA > 1.24 g, the potential earthquake damage is very heavy. from 1900 to 2018

On average, 176 persons were killed by volcanic eruptions every year.

There were 5 volcanic eruptions, 20.0% of the total, with a death toll that was equal to or larger than 500.

There were 2 volcanic eruptions, 8.0% of the total, with the death toll from 100 to 500.

There were 5 volcanic eruptions, 20.0% of the total, with the death toll from 30 to 100.

There were 13 volcanic eruptions, 52.0% of the total, with the death toll less than 30.

Special Report of Disaster and Risk in the Belt and Road Region 2019 19 Earthquake disasters Volcanic disasters 20

Distribution of active faults Number of volcanic eruptions and earthquakes from 1900 to 2018

There are eight major active faults in SEA. Most of On average, there were 7.5 volcanic eruptions them are distributed around the Philippines and every year. Indonesia. The two longest active faults are the Sumatra and Philippine Faults. The Sumatra Fault There were 5 volcanos, 6.0% of the total, with the was formed by the collision of the Eurasian and number of eruptions equal to or greater than 35.

Indian plates, and the Philippine Fault was formed There were 10 volcanos, 11.9% of the total, with the by the amalgamation of the Eurasian and Philippine number of eruptions from 20 to 34. plates. From 1900 to 2018, there were 236 earthquakes of magnitude 7.0 or above that There were 14 volcanos, 16.7% of the total, with the occurred in Southeast Asia, of which approximately number of eruptions from 10 to 19.

73% occurred in Indonesia and the Philippines, There were 12 volcanos, 14.3% of the total, with the and approximately 4.6% occurred in Myanmar. number of eruptions from 5 to 9.

There were 43 volcanos, 51.2% of the total, with the number of eruptions less than 5.

Number of people affected by volcanic eruptions from 1900 Seismic hazard map to 2018

Areas subject to light potential earthquake damage On average, 26,407 persons were affected by (with peak ground acceleration with a return period volcanic eruptions every year.

of 475 years, PGA, < 0.18 g) are distributed in There were 4 volcanic eruptions, 16.0% of the total, Thailand, Laos, Vietnam, Singapore, and with the affected population larger than 200,000. Kalimantan Island of Indonesia. Areas subject to moderate potential for seismic damage (PGA There were 7 volcanic eruptions, 28.0% of the total, ranging from 0.18 to 0.34 g) include most parts of with the affected population from 50,000 to 200,000.

Myanmar. Areas subject to moderate-to-heavy There were 6 volcanic eruptions, 24.0% of the total, potential for seismic damage (PGA ranging from with the affected population from 10,000 to 50,000. 0.34 to 0.65 g) include the Arakan Mountains and the western side of the Shan Plateau in Myanmar, There were 8 volcanic eruptions, 32.0% of the total, the Barisan Mountains in Sumatra Island in with the affected population less than 10,000. Indonesia, and East Timor. In areas where the PGA is greater than 0.65 g, mainly the Philippines, the Note: PGA < 0.092g, the potential earthquake damage is very light; 0.092 g < PGA < 0.18 g, the potential earthquake damage is light; 0.18 g < PGA <0.34 g, the potential earthquake damage is potential for seismic damage is very heavy. moderate; 0.34 g < PGA < 0.65 g, the potential earthquake damage is from moderate to heavy; 0.65 g Death toll from volcanic eruptions < PGA < 1.24 g, the potential earthquake damage is heavy; PGA > 1.24 g, the potential earthquake damage is very heavy. from 1900 to 2018

On average, 176 persons were killed by volcanic eruptions every year.

There were 5 volcanic eruptions, 20.0% of the total, with a death toll that was equal to or larger than 500.

There were 2 volcanic eruptions, 8.0% of the total, with the death toll from 100 to 500.

There were 5 volcanic eruptions, 20.0% of the total, with the death toll from 30 to 100.

There were 13 volcanic eruptions, 52.0% of the total, with the death toll less than 30.

Special Report of Disaster and Risk in the Belt and Road Region 2019 04Climate change is increasing extreme climate event risks 04Climate change is increasing extreme climate event risks 23 Extreme temperature and heat waves Extreme precipitation 24

With the rise in the global mean temperature, the frequency and The frequency of extreme precipitation in SEA in 2045-2054 will be intensity of extreme temperatures and heat waves has gradually greater than that in 1990-1999 (Chotamonsak et al. 2011). By 2049, increased (Perkins et al. 2012), and has had a great impact on nearly 50% of the regions in SEA will have a trend of increasing human activity (Mora et al. 2017). Under the scenario of a 1.5°C annual precipitation, with magnitudes ranging from 10 to 20% warmer world, the average temperature in SEA will increase 0.5-2°C (Lacombe et al. 2012). By the end of the 21st century, under the by 2100 compared to that of 1861-1880 (Hoegh-Guldberg, et al. representative concentration pathways (RCP) of 4.5 and 8.5 from 2018). 1970-1999, the annual average precipitation in the land area of SEA will increase 9-15%, and extreme precipitation will increase 13-21% Our analysis of the annual average heat wave days in the historical as compared to the period from 1970-1999 (Mandapaka and Lo period (1986-2005), the 2030s (2016-2035), and the 2050s 2018). The Indo-China peninsula and the Philippines are among the (2046-2065) in SEA showed that by the 2050s, the maximum and regions that will experience the largest increase in extreme average value of the annual heat wave days in most countries will precipitation, with a magnitude more than 20%. increase 20% and 10%, respectively, from the value of the historical period. Our analysis of the annual total rainfall from rainstorms in the historical period, the 2030s, and the 2050s in SEA showed that the Historical period The spatial pattern of annual average heat wave days would also regional maximum and average values of the total rainfall from Historical period significantly change. Areas with more than 22 heat wave days per rainstorms in most countries have an increasing trend. From the year would significantly increase over time. Areas with more than 30 historical period to the 2030s, Myanmar would have the largest days are mainly located in the Philippines and Indonesia, especially increase of 14%, and Brunei would have the smallest change. From in the Philippines. By the 2050s, the annual average heat the 2030s to 2050s, Myanmar again would have the largest increase wave days in these regions would increase 18-44% as compared to of 14%, and the Philippines would have the smallest change. From their historical counterparts. the historical period to the 2050s, Myanmar would have the largest increase of 24%, while Brunei would have the smallest change, 1%.

The spatial patterns of rainstorm rainfall remain similar for the three periods. Regions with annual total rainfall greater than 900 mm are mainly distributed in western Myanmar, eastern Indonesia, and the northern Philippines. The Mekong River Basin, the Ayeyarwady River Basin, Luzon in the Philippines, and the eastern part of Papua Island in Indonesia are the areas with large annual total rainfall from rainstorms.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 23 Extreme temperature and heat waves Extreme precipitation 24

With the rise in the global mean temperature, the frequency and The frequency of extreme precipitation in SEA in 2045-2054 will be intensity of extreme temperatures and heat waves has gradually greater than that in 1990-1999 (Chotamonsak et al. 2011). By 2049, increased (Perkins et al. 2012), and has had a great impact on nearly 50% of the regions in SEA will have a trend of increasing human activity (Mora et al. 2017). Under the scenario of a 1.5°C annual precipitation, with magnitudes ranging from 10 to 20% warmer world, the average temperature in SEA will increase 0.5-2°C (Lacombe et al. 2012). By the end of the 21st century, under the by 2100 compared to that of 1861-1880 (Hoegh-Guldberg, et al. representative concentration pathways (RCP) of 4.5 and 8.5 from 2018). 1970-1999, the annual average precipitation in the land area of SEA will increase 9-15%, and extreme precipitation will increase 13-21% Our analysis of the annual average heat wave days in the historical as compared to the period from 1970-1999 (Mandapaka and Lo period (1986-2005), the 2030s (2016-2035), and the 2050s 2018). The Indo-China peninsula and the Philippines are among the (2046-2065) in SEA showed that by the 2050s, the maximum and regions that will experience the largest increase in extreme average value of the annual heat wave days in most countries will precipitation, with a magnitude more than 20%. increase 20% and 10%, respectively, from the value of the historical period. Our analysis of the annual total rainfall from rainstorms in the historical period, the 2030s, and the 2050s in SEA showed that the Historical period The spatial pattern of annual average heat wave days would also regional maximum and average values of the total rainfall from Historical period significantly change. Areas with more than 22 heat wave days per rainstorms in most countries have an increasing trend. From the year would significantly increase over time. Areas with more than 30 historical period to the 2030s, Myanmar would have the largest days are mainly located in the Philippines and Indonesia, especially increase of 14%, and Brunei would have the smallest change. From Luzon in the Philippines. By the 2050s, the annual average heat the 2030s to 2050s, Myanmar again would have the largest increase wave days in these regions would increase 18-44% as compared to of 14%, and the Philippines would have the smallest change. From their historical counterparts. the historical period to the 2050s, Myanmar would have the largest increase of 24%, while Brunei would have the smallest change, 1%.

The spatial patterns of rainstorm rainfall remain similar for the three periods. Regions with annual total rainfall greater than 900 mm are mainly distributed in western Myanmar, eastern Indonesia, and the northern Philippines. The Mekong River Basin, the Ayeyarwady River Basin, Luzon in the Philippines, and the eastern part of Papua Island in Indonesia are the areas with large annual total rainfall from rainstorms.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 25 Population exposure to heat waves Heat wave mortality risk 26

Warming associated with climate change will likely induce After analysis by jointly considering future climate scenarios and the environmental temperatures to exceed the range of human SSPs, the results indicate that mortality due to heat waves in SEA tolerance, posing a great threat to human health. The increase in would significantly increase. In the historical period, the annual extremely high temperatures could lead to increased population average death toll due to heat waves in SEA was approximately mortality rate, production disruptions, and industrial losses. 2,010 persons. This figure would reach 8,992 and 19,136 in 2030s Research shows that nearly 10-15% of the working hours in SEA are and 2050s, respectively. Compared with the historical period, this is forced to shrink due to high temperatures each year. Climate an increase of 3.5 times and 8.5 times, respectively. change could further double the loss in working hours caused by high temperatures by 2050 (Kjellstrom 2015). The mortality risk during heat waves will mostly increase except in the Philippines and Singapore. The spatial patterns of mortality risk In our analysis, we jointly considered future climate scenarios and in heat waves are similar across the three periods. Countries with the Shared Socioeconomic Pathways (SSPs), and they showed that higher mortality include Cambodia, Vietnam, Myanmar, and SEA’s annual average total population exposure to heat waves Thailand. Countries with less mortality risk are Brunei, Indonesia, would drastically increase. In the historical period, the annual Malaysia, and Timor-Leste. average total population exposure in SEA was approximately Historical period 1.5×1010 person·day. That number will reach 1.3×1011 and 2.2×1011 Historical period in the 2030s and 2050s, respectively, which are correspondingly 7.9 times and 14.0 times larger.

The spatial pattern of population exposure to heat waves will not change greatly, but the total areas exposed to the heat waves are increasing. Regions with an annual average total population exposure to heat waves exceeding 5×107 person·day will dramatically increase by 2050s. These regions include the Philippines, Thailand, southern Vietnam, central Cambodia, and southern Myanmar. Ho Chi Minh City in Vietnam, Phnom Penh in Cambodia, Yangon in Myanmar, Bangkok in Thailand, Jakarta in Indonesia, and Manila in the Philippines are all areas with the highest population exposure to heat waves.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 25 Population exposure to heat waves Heat wave mortality risk 26

Warming associated with climate change will likely induce After analysis by jointly considering future climate scenarios and the environmental temperatures to exceed the range of human SSPs, the results indicate that mortality due to heat waves in SEA tolerance, posing a great threat to human health. The increase in would significantly increase. In the historical period, the annual extremely high temperatures could lead to increased population average death toll due to heat waves in SEA was approximately mortality rate, production disruptions, and industrial losses. 2,010 persons. This figure would reach 8,992 and 19,136 in 2030s Research shows that nearly 10-15% of the working hours in SEA are and 2050s, respectively. Compared with the historical period, this is forced to shrink due to high temperatures each year. Climate an increase of 3.5 times and 8.5 times, respectively. change could further double the loss in working hours caused by high temperatures by 2050 (Kjellstrom 2015). The mortality risk during heat waves will mostly increase except in the Philippines and Singapore. The spatial patterns of mortality risk In our analysis, we jointly considered future climate scenarios and in heat waves are similar across the three periods. Countries with the Shared Socioeconomic Pathways (SSPs), and they showed that higher mortality include Cambodia, Vietnam, Myanmar, and SEA’s annual average total population exposure to heat waves Thailand. Countries with less mortality risk are Brunei, Indonesia, would drastically increase. In the historical period, the annual Malaysia, and Timor-Leste. average total population exposure in SEA was approximately Historical period 1.5×1010 person·day. That number will reach 1.3×1011 and 2.2×1011 Historical period in the 2030s and 2050s, respectively, which are correspondingly 7.9 times and 14.0 times larger.

The spatial pattern of population exposure to heat waves will not change greatly, but the total areas exposed to the heat waves are increasing. Regions with an annual average total population exposure to heat waves exceeding 5×107 person·day will dramatically increase by 2050s. These regions include the Philippines, Thailand, southern Vietnam, central Cambodia, and southern Myanmar. Ho Chi Minh City in Vietnam, Phnom Penh in Cambodia, Yangon in Myanmar, Bangkok in Thailand, Jakarta in Indonesia, and Manila in the Philippines are all areas with the highest population exposure to heat waves.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 27 Flood mortality risk Flood GDP loss risk 28

Climate change will increase the runoff of most rivers in SEA, leading The risk of GDP loss to floods in SEA will also significantly increase. to a greater risk of flood. For example, the inundation area in the In the historical period, the annual average GDP loss of the entire Yang River Basin for a once-in-100a flood will increase 293-325 km2 region was approximately US$1.13 billion (2005 PPP). In the 2030s in 2080 as compared with 2007 (Shrestha and Lohpaisankrit 2017). and 2050s, the figure would increase to US$36.81 and US$55.44 The Mekong River's discharge in the wet months will increase by billion (2005 PPP). This denotes increases of 31.6 and 48.2 times, 15% in 2040 as compared with 1990 (Lauri et al. 2012). respectively, as compared with the historical period. The increase in risk applies for most countries except for Singapore and East Timor. Our simulation analysis by jointly considering future climate change From the historical period to the 2030s, Vietnam has the largest scenarios and the SSPs showed that the flood mortality risk in SEA increase in risk of 65.6 times, followed by Myanmar with 58.5 times, would significantly increase. In the historical period, the annual while Indonesia has the smallest with 13.4 times. average death toll in SEA was approximately 559. This figure would reach 2,867 and 4,606 in the 2030s and 2050s, respectively. The risk of GDP loss to floods is relatively high in the Indo-China Compared with the historical period, this denotes increases of 4.1 Peninsula and relatively low in the Malay Islands. The spatial pattern times and 7.2 times, respectively. Most countries would experience of loss to floods is relatively consistent across the three periods. an increased trend in flood mortality except for Indonesia. Countries with high risk of GDP loss include Cambodia, Vietnam, Historical period Myanmar, and Thailand. High-risk river basins include the Mekong Historical period The spatial pattern of flood mortality risk is relatively consistent River, Red River, and Savin River. across the three periods. Flood mortality risk is relatively high in the Indo-China Peninsula but relatively low in the Malay Archipelago. Countries with high risk are Cambodia, Vietnam, Myanmar, and Thailand. High-risk river basins include the Mekong River, Red River, and Savin River. In the 2030s, the annual average flood mortality in those four countries would be more than 100, and would increase to more than 500 in the 2050s. Countries with low risk include Brunei, Singapore, and East Timor. In the 2030s and 2050s, the average annual deaths would be less than 50.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 27 Flood mortality risk Flood GDP loss risk 28

Climate change will increase the runoff of most rivers in SEA, leading The risk of GDP loss to floods in SEA will also significantly increase. to a greater risk of flood. For example, the inundation area in the In the historical period, the annual average GDP loss of the entire Yang River Basin for a once-in-100a flood will increase 293-325 km2 region was approximately US$1.13 billion (2005 PPP). In the 2030s in 2080 as compared with 2007 (Shrestha and Lohpaisankrit 2017). and 2050s, the figure would increase to US$36.81 and US$55.44 The Mekong River's discharge in the wet months will increase by billion (2005 PPP). This denotes increases of 31.6 and 48.2 times, 15% in 2040 as compared with 1990 (Lauri et al. 2012). respectively, as compared with the historical period. The increase in risk applies for most countries except for Singapore and East Timor. Our simulation analysis by jointly considering future climate change From the historical period to the 2030s, Vietnam has the largest scenarios and the SSPs showed that the flood mortality risk in SEA increase in risk of 65.6 times, followed by Myanmar with 58.5 times, would significantly increase. In the historical period, the annual while Indonesia has the smallest with 13.4 times. average death toll in SEA was approximately 559. This figure would reach 2,867 and 4,606 in the 2030s and 2050s, respectively. The risk of GDP loss to floods is relatively high in the Indo-China Compared with the historical period, this denotes increases of 4.1 Peninsula and relatively low in the Malay Islands. The spatial pattern times and 7.2 times, respectively. Most countries would experience of loss to floods is relatively consistent across the three periods. an increased trend in flood mortality except for Indonesia. Countries with high risk of GDP loss include Cambodia, Vietnam, Historical period Myanmar, and Thailand. High-risk river basins include the Mekong Historical period The spatial pattern of flood mortality risk is relatively consistent River, Red River, and Savin River. across the three periods. Flood mortality risk is relatively high in the Indo-China Peninsula but relatively low in the Malay Archipelago. Countries with high risk are Cambodia, Vietnam, Myanmar, and Thailand. High-risk river basins include the Mekong River, Red River, and Savin River. In the 2030s, the annual average flood mortality in those four countries would be more than 100, and would increase to more than 500 in the 2050s. Countries with low risk include Brunei, Singapore, and East Timor. In the 2030s and 2050s, the average annual deaths would be less than 50.

2030s 2030s

2050s 2050s

Special Report of Disaster and Risk in the Belt and Road Region 2019 05Rapid growth in infrastructure investment and disaster exposure 05Rapid growth in infrastructure investment and disaster exposure Transportation infrastructure with Chinese investment Transportation infrastructure with Chinese investment 33 Infrastructure exposure to earthquakes Infrastructure exposure to flood 34

25.0%

Highways Railway lines Airports Bridges Highways Railway lines Airports

The majority of infrastructures in SEA with Chinese participation are Airports: The Luang Prabang International Airport in Laos possesses According to the projection of flood models driven by future climate Railway lines: The railway lines with a relatively high average annual located in areas with light potential seismic damage. The moderate potential seismic damage. Other airports would be subject forcing, in the 2030s and 2050s, the majority of infrastructures in SEA inundation depth include the Lao Cai-Hai Phong line in Vietnam and infrastructures with relatively heavy potential seismic damage are to light potential seismic damages. with Chinese participation that could be subjected to flooding are the Kunming-Kyaukpyu line from China to Myanmar. Over the next 50 distributed in Indonesia, Myanmar, and the Philippines. mainly located in Cambodia and southern Myanmar. years, the sections with an average inundation depth of more than 1 Bridges: The Kun Long Bridge in Myanmar has the potential for m in the Lao Cai-Hai Phong line will reach 39%, and those in the Highways: The Zhangfeng-Bhamo expressway in Myanmar and the moderate seismic damage, while the Binondo-Intramuros and Highways: The highways with a high average annual inundation Kunming-Kyaukpyu line will reach 17%. The average annual Suai expressway in East Timor have moderate potential seismic Estrella-Pantaleon Bridges in the Philippines have the potential for depth include National Highway 3 of Cambodia, National Highway 11 inundation depths of other railway lines are lower. damage. Other roads possess light potential seismic damage. heavy seismic damage. Other bridges have light potential seismic of Cambodia, and the Nanning- expressway from China to damages. Vietnam. The proportion of these lines with an average annual Airports: The average annual inundation depths of the Vientiane Railway lines: In a varied mix, 34% of the Vientiane–Boten line in inundation depth greater than 1 m in the next 50 years is greater than Wattay International Airport and Xieng Khouang Airports in Laos are Laos, 24% of the China-Thailand line in China to Thailand, 86% of the Ports: The Kyaukpyu Port in Myanmar and the Tibar Bay Port in East 30%. Other highways have a lower average annual inundation depth. relatively high. The average inundation depth of the Vientiane Wattay Kunming-Kyaukpyu line in China to Myanmar, and 100% of the Timor possess moderate potential seismic damage. International Airport will reach 1.85 m per year for the next 50 years, Jakarta-Bandung line in Indonesia are in areas with moderate or and that of the Xieng Khouang Airport will reach 1.25 m for the next 50 heavy potential seismic damage. Other railway lines are in areas with years. Other airports have lower average annual inundation depths. light potential seismic damages.

Special Report of Disaster and Risk in the Belt and Road Region 2019 33 Infrastructure exposure to earthquakes Infrastructure exposure to flood 34

25.0%

Highways Railway lines Airports Bridges Highways Railway lines Airports

The majority of infrastructures in SEA with Chinese participation are Airports: The Luang Prabang International Airport in Laos possesses According to the projection of flood models driven by future climate Railway lines: The railway lines with a relatively high average annual located in areas with light potential seismic damage. The moderate potential seismic damage. Other airports would be subject forcing, in the 2030s and 2050s, the majority of infrastructures in SEA inundation depth include the Lao Cai-Hai Phong line in Vietnam and infrastructures with relatively heavy potential seismic damage are to light potential seismic damages. with Chinese participation that could be subjected to flooding are the Kunming-Kyaukpyu line from China to Myanmar. Over the next 50 distributed in Indonesia, Myanmar, and the Philippines. mainly located in Cambodia and southern Myanmar. years, the sections with an average inundation depth of more than 1 Bridges: The Kun Long Bridge in Myanmar has the potential for m in the Lao Cai-Hai Phong line will reach 39%, and those in the Highways: The Zhangfeng-Bhamo expressway in Myanmar and the moderate seismic damage, while the Binondo-Intramuros and Highways: The highways with a high average annual inundation Kunming-Kyaukpyu line will reach 17%. The average annual Suai expressway in East Timor have moderate potential seismic Estrella-Pantaleon Bridges in the Philippines have the potential for depth include National Highway 3 of Cambodia, National Highway 11 inundation depths of other railway lines are lower. damage. Other roads possess light potential seismic damage. heavy seismic damage. Other bridges have light potential seismic of Cambodia, and the Nanning-Hanoi expressway from China to damages. Vietnam. The proportion of these lines with an average annual Airports: The average annual inundation depths of the Vientiane Railway lines: In a varied mix, 34% of the Vientiane–Boten line in inundation depth greater than 1 m in the next 50 years is greater than Wattay International Airport and Xieng Khouang Airports in Laos are Laos, 24% of the China-Thailand line in China to Thailand, 86% of the Ports: The Kyaukpyu Port in Myanmar and the Tibar Bay Port in East 30%. Other highways have a lower average annual inundation depth. relatively high. The average inundation depth of the Vientiane Wattay Kunming-Kyaukpyu line in China to Myanmar, and 100% of the Timor possess moderate potential seismic damage. International Airport will reach 1.85 m per year for the next 50 years, Jakarta-Bandung line in Indonesia are in areas with moderate or and that of the Xieng Khouang Airport will reach 1.25 m for the next 50 heavy potential seismic damage. Other railway lines are in areas with years. Other airports have lower average annual inundation depths. light potential seismic damages.

Special Report of Disaster and Risk in the Belt and Road Region 2019 35 Infrastructure exposure to tropical cyclones Infrastructure exposure to historical natural hazards 36

Infrastructure exposure if the 1991 Burma 7.0 earthquake recurs

An earthquake with magnitude 7.0 struck northern Myanmar on 5 January 1991. The epicenter was located at 23.616°N, 95.901°E, 99 km away from Wind force Mandalay, which is Myanmar's second largest city. The focal depth was 19.7 km, and the maximum intensity was VIII. The earthquake destroyed 32 buildings and 380 hectares of farmland, triggering collapse and landslides, affecting 160 people but without causing death. The quake was felt in Longchuan, Lancang, and Kunming in Yunnan Province, China, and also in Laos and Thailand.

If the earthquake recurs, the impact on infrastructure will be minimal. Only 21.89% of the section in the Kunming-Kyaukpyu Railway from China to Myanmar is located in the intensity IV zone, while 35.53% of the section in the Zhangfeng-Bamo Expressway is in the intensity IV zone.

Based on seismic hazard maps and historical earthquakes, Indonesia has experienced many large earthquakes and has great potential to experience earthquake damage. However, in SEA, infrastructures with Chinese participation are mainly located in the Indo-China Peninsula, which is less prone to earthquakes. Even if historical events recur, they are unlikely to cause large losses.

Infrastructure exposure if the 2011 Thailand flood recurs

Highways Railway lines Airports Bridges If the 2011 Thailand flood recurs, the Sino Thai Railway and the Suvarnabhumi Airport could be inundated. The inundated section of the Sino Thai Infrastructures in Southeast Asia with Chinese participation that are Bridges: The wind speeds on the Beilun River Bridge 2, Shuikou-Ta Railway accounts for 19.6% of the total length of the subject to high tropical cyclone wind speed (based on a peak wind Lung Bridge 2, and Dongzhong-Hoành Mô Bridge in Vietnam, and line. speed map of 3-s gusts with return periods of 100 years) are mainly the Binondo-Intramuros and Estrella-Pantaleon Bridges in the located in the Philippines, Vietnam, and Laos. Philippines are in the range of force 10 or above, and the wind speed of the bridges in the Philippines is up to force 15 (46-51 m/s). Other Highways: For the Nanning-Hanoi, Nanning-Moncay-Hanoi, and bridges are located in areas with wind speeds below force 8. Baise-Hanoi Highways in Vietnam, and part of National Highway 76 of Cambodia and the Phnom Penh-Sihanouk expressway in Cambodia, Airports: The wind speeds at the Xieng Khouang, Luang Prabang and the wind speeds reach 10 force (24.5-28.4 m/s) and above. The wind Vientiane Wattay International Airports in Laos reach force 10 or speeds at other highways range in 7 to 9 force. above, and the wind speed at the Suvarnabhumi Airport in Thailand is less than force 7. Railway lines: The Cat Linh-Ha Dong line in Vietnam, the Nanning-Hanoi line from China to Vietnam, and the Fang-cheng Ports: The Kyaukpyu Port in Myanmar and the Tibar Bay Port in East Gang-Hanoi line are significantly affected, with wind speeds above Timor experience wind speeds of force 7 and 8, respectively. force 10. The wind speeds of other railway lines range from force 7 to force 9.

Special Report of Disaster and Risk in the Belt and Road Region 2019 35 Infrastructure exposure to tropical cyclones Infrastructure exposure to historical natural hazards 36

Infrastructure exposure if the 1991 Burma 7.0 earthquake recurs

An earthquake with magnitude 7.0 struck northern Myanmar on 5 January 1991. The epicenter was located at 23.616°N, 95.901°E, 99 km away from Wind force Mandalay, which is Myanmar's second largest city. The focal depth was 19.7 km, and the maximum intensity was VIII. The earthquake destroyed 32 buildings and 380 hectares of farmland, triggering collapse and landslides, affecting 160 people but without causing death. The quake was felt in Longchuan, Lancang, and Kunming in Yunnan Province, China, and also in Laos and Thailand.

If the earthquake recurs, the impact on infrastructure will be minimal. Only 21.89% of the section in the Kunming-Kyaukpyu Railway from China to Myanmar is located in the intensity IV zone, while 35.53% of the section in the Zhangfeng-Bamo Expressway is in the intensity IV zone.

Based on seismic hazard maps and historical earthquakes, Indonesia has experienced many large earthquakes and has great potential to experience earthquake damage. However, in SEA, infrastructures with Chinese participation are mainly located in the Indo-China Peninsula, which is less prone to earthquakes. Even if historical events recur, they are unlikely to cause large losses.

Infrastructure exposure if the 2011 Thailand flood recurs

Highways Railway lines Airports Bridges If the 2011 Thailand flood recurs, the Sino Thai Railway and the Suvarnabhumi Airport could be inundated. The inundated section of the Sino Thai Infrastructures in Southeast Asia with Chinese participation that are Bridges: The wind speeds on the Beilun River Bridge 2, Shuikou-Ta Railway accounts for 19.6% of the total length of the subject to high tropical cyclone wind speed (based on a peak wind Lung Bridge 2, and Dongzhong-Hoành Mô Bridge in Vietnam, and line. speed map of 3-s gusts with return periods of 100 years) are mainly the Binondo-Intramuros and Estrella-Pantaleon Bridges in the located in the Philippines, Vietnam, and Laos. Philippines are in the range of force 10 or above, and the wind speed of the bridges in the Philippines is up to force 15 (46-51 m/s). Other Highways: For the Nanning-Hanoi, Nanning-Moncay-Hanoi, and bridges are located in areas with wind speeds below force 8. Baise-Hanoi Highways in Vietnam, and part of National Highway 76 of Cambodia and the Phnom Penh-Sihanouk expressway in Cambodia, Airports: The wind speeds at the Xieng Khouang, Luang Prabang and the wind speeds reach 10 force (24.5-28.4 m/s) and above. The wind Vientiane Wattay International Airports in Laos reach force 10 or speeds at other highways range in 7 to 9 force. above, and the wind speed at the Suvarnabhumi Airport in Thailand is less than force 7. Railway lines: The Cat Linh-Ha Dong line in Vietnam, the Nanning-Hanoi line from China to Vietnam, and the Fang-cheng Ports: The Kyaukpyu Port in Myanmar and the Tibar Bay Port in East Gang-Hanoi line are significantly affected, with wind speeds above Timor experience wind speeds of force 7 and 8, respectively. force 10. The wind speeds of other railway lines range from force 7 to force 9.

Special Report of Disaster and Risk in the Belt and Road Region 2019 37 Infrastructure exposure to historical natural hazards

Infrastructure exposure if the 2017 typhoon "Doksuri" recurs

In 2017, No. 19 typhoon "Doksuri" formed on the southern land of Luzon on September 12, gradually strengthened into a strong typhoon and moved northwest, and made landfall in northern Vietnam on September 15. Doksuri caused 35 casualties and direct economic losses of US$7.47 billion, and brought huge losses to China, Vietnam, Laos, and the Philippines.

If typhoon Doksuri recurs, it would have slight impact on the highways built by China. The wind speeds of the highways are mostly less than force 7, and only 38.14% of the Nanning-Moncay-Hanoi Expressway from China to Vietnam is located in the Insurance could play impacted area of force 7 wind. Rail transit lines 06 would suffer heavy impact, including mainly the Fang-cheng Gang- Hanoi Railway from China to more important roles in Vietnam and the Sino Thai Railway from China to Thailand. Among them, 48.76% of the sections of the Fang-cheng Gang- Hanoi Railway are located disaster risk transfer in force 7 wind impacted areas, and 28.37% and 9.44% of the sections of the Sino Thai Railway are located in impacted areas of force 7 wind and force 10 wind, respectively. The Vientiane Wattay International Airport in Laos is located in impacted areas of force 10 wind. Bridges are less affected by typhoons, and only the Binodo-Interlamuros Bridge and the Estgera-Pantalion Bridge in the Philippines are located in the impacted areas of force 7 wind. 37 Infrastructure exposure to historical natural hazards

Infrastructure exposure if the 2017 typhoon "Doksuri" recurs

In 2017, No. 19 typhoon "Doksuri" formed on the southern land of Luzon on September 12, gradually strengthened into a strong typhoon and moved northwest, and made landfall in northern Vietnam on September 15. Doksuri caused 35 casualties and direct economic losses of US$7.47 billion, and brought huge losses to China, Vietnam, Laos, and the Philippines.

If typhoon Doksuri recurs, it would have slight impact on the highways built by China. The wind speeds of the highways are mostly less than force 7, and only 38.14% of the Nanning-Moncay-Hanoi Expressway from China to Vietnam is located in the Insurance could play impacted area of force 7 wind. Rail transit lines 06 would suffer heavy impact, including mainly the Fang-cheng Gang- Hanoi Railway from China to more important roles in Vietnam and the Sino Thai Railway from China to Thailand. Among them, 48.76% of the sections of the Fang-cheng Gang- Hanoi Railway are located disaster risk transfer in force 7 wind impacted areas, and 28.37% and 9.44% of the sections of the Sino Thai Railway are located in impacted areas of force 7 wind and force 10 wind, respectively. The Vientiane Wattay International Airport in Laos is located in impacted areas of force 10 wind. Bridges are less affected by typhoons, and only the Binodo-Interlamuros Bridge and the Estgera-Pantalion Bridge in the Philippines are located in the impacted areas of force 7 wind. 39 Overall development of insurance Overall development of insurance 40

Non-life insurance penetration and Insurance penetration and density of six SEA countries and other "Belt and Road" countries and districts density in SEA countries

Since 2007, the premium revenue of the major countries in SEA continuously increased but reached a relatively stable state after 2012. Among them, Singapore, Malaysia, and Thailand are the major contributors to insurance premium growth.

The non-life insurance density in SEA countries has been on the rise since 2007. Large fluctuations were also found in Thailand, after the US$3.5 billion insurance payout in response to the 2011 flood. The government approved a US$1.6 billion natural catastrophe insurance fund after the 2011 floods in Thailand. The Philippines was also hit by severe storm surges in 2013, leading to fluctuations in insurance density in the following years.

SEA’s non-life insurance penetration in the world

Non-life insurance penetration and density in the major countries in SEA are mainly at three levels in the world. Among them, Singapore is the world's leading insurance market. Malaysia and Thailand are in the middle. Vietnam, the Philippines, and Indonesia are among the world's laggards. From the matching relationship between insurance penetration and economic development level, all countries except Singapore are located near the average level (fitting line) of major countries and regions in the world.

Special Report of Disaster and Risk in the Belt and Road Region 2019 39 Overall development of insurance Overall development of insurance 40

Non-life insurance penetration and Insurance penetration and density of six SEA countries and other "Belt and Road" countries and districts density in SEA countries

Since 2007, the premium revenue of the major countries in SEA continuously increased but reached a relatively stable state after 2012. Among them, Singapore, Malaysia, and Thailand are the major contributors to insurance premium growth.

The non-life insurance density in SEA countries has been on the rise since 2007. Large fluctuations were also found in Thailand, after the US$3.5 billion insurance payout in response to the 2011 flood. The government approved a US$1.6 billion natural catastrophe insurance fund after the 2011 floods in Thailand. The Philippines was also hit by severe storm surges in 2013, leading to fluctuations in insurance density in the following years.

SEA’s non-life insurance penetration in the world

Non-life insurance penetration and density in the major countries in SEA are mainly at three levels in the world. Among them, Singapore is the world's leading insurance market. Malaysia and Thailand are in the middle. Vietnam, the Philippines, and Indonesia are among the world's laggards. From the matching relationship between insurance penetration and economic development level, all countries except Singapore are located near the average level (fitting line) of major countries and regions in the world.

Special Report of Disaster and Risk in the Belt and Road Region 2019 Special Report ofDisaster andRiskintheBelt andRoadRegion Special Report 41

Vietnam Thailand Philippines Myanmar Malaysia Lao PDR Indonesia Country Property insurance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · his orherfamilyandpersonalliabilityinsurance. cover maybeextendedtoincludepersonalaccidentandhospitalincomeplansfortheinsured and typhoonandflood(attheinsured'searthquake, option) orrobbery,burglary ofwatertanksandpipes burstingand/oroverflowing vehicle impact,explosionandfallingaircraft fire, lightningandsmokedamage Householders' comprehensive policiestypicallycoverthefollowingbasicperils: householders' comprehensive fire andnaturalperils fire andlightningonly Three levelsofcoverare available: liability tothepublicupMYR100,000(USD21,459) loss ofrent (upto10%of thetotalsuminsured onbuildings) Extended coverage: volcaniceruption earthquake, flood, butexcludinglossordamagecausedbysubsidencelandslip hurricane, cyclone,typhoon,windstorm theft accompaniedbyforcibleorexit,anyattemptthereat andviolententry ofdomesticwatertanks,apparatusorpipes bursting oroverflowing insured oranymemberof hisorherfamily impact withbuildingsbyanyroad vehiclesoranimalsnotbelongingtounderthecontrol ofthe aircraft dropped andotheraerialdevices and/orarticles therefrom fire, lightning,thunderbolt,subterraneanfire, explosion Basic coverincludeslossordamagecausedby: Policy coveringeneralfollowstheAssociationofBritishInsurers (ABI)wording. earthquake, windstorm andflood.Thebasisofcoveristypicallyreinstatement windstorm forthebuildingandindemnitycontents. earthquake, covergenerally takenbylocalhomeownerscomprisesfire,The alternative theftandafullrangeofnamedperilsincluding personal accidentfortheoccupierandfamily as above,forbuildings flood, fallingtrees/poles,theft,malicious damage,waterSRCCandimpact) earthquake, fire andnamedperils,oncontents,includinglossofrent cover(additionalperils beingexplosion,lightning,storm, Cover available is as follows: policy forms. The scopeofcomprehensive coverisfairlystandard andgenerallyfollowstheUKAustralianhomeowner Some domesticinsurancecompaniesissueseparatefire andtheftpolicies insured dwelling;generalliabilityandemployers'insuranceformaidsdrivers. accommodation;lossoflifetotheinsuredof temporary orfamilymember(s)incurred becauseoffire orrobberyatthe removal ofpersonaleffects;Optional sectionsinahouseholdpolicyinclude:coverforpersonalaccident;temporary cost offlooddamage. the amountoffloodcovertheyprovide, whichhaveahistory especiallyforproperties reinsurance andconditions.Since2013capacityhasreturnedtothemarket,butsomedomesticinsurers terms stilllimit After the2011floods,coverforthisperilwasrestricted orremoved from manypolicies,followingsignificantchangesto insurersMost oftheinternational alsooffer "allrisks"options. theft and/orallrisksforvaluables. waterdamage,vehicleimpact,andaircraft impact,andforcontents,similarperilsplus lightning, explosion,windstorm, broader coverageoptioncoveringbuildingsagainstfire, withanalternative floodandearthquake, example, windstorm, In general,twotypesofcoverageare offered bymostinsurers, onealow-costoption, typicallycoveringfire plus,for as above,plusburglary as above,plusglassandelectricaldamage rainwater enteringthebuildingresulting from covered perils.) and hurricane,cycloneorwindstorm, and pipesfrom withinthebuilding,butalsoearthquake, ofwatertanks,apparatus as above,pluswaterdamage(notonlyincludesburstingandoverflowing fire, lightningandexplosion,familyliability, neighbours'liability Typically thefouroptionsoffered are asfollows: Most companiesoffer fourpackages,withincreasing premium forwidercover. removal and/orflood,earthquake, ofdebris. typhoon, windstorm vehicle impact smoke;riot, strike,maliciousdamagepluscivilcommotionburglary impact offallingaircraft orobjectsfallingdropped from aircraft fire, lightning,explosionresulting from thepressure ofgasesorchemicalreaction; A typicalpolicyincludes: Limits andScopeofCover aircraft, impact, subsidence, landslip, burglary andwarrisks. aircraft, impact,subsidence,landslip,burglary flood, explosion,spontaneouscombustion,storm, of namedperilsasoptionalextensions,includingearthquake, The privateinsurers, however, whilstproviding asimilarbasicstandard ofcover, alsoappeartobeoffering afullrange companieswhereinternational MyanmaInsuranceprovides fronting facilities. and civilcommotion.Widercovermaybearrangedfrom andtendstobefor timetotime,butitisnotthenorm, The standard coveroffered byMyanmaInsuranceislimitedtofire andlightningwithanextensiontoincludestrikes,riots Typical disasterriskinsuranceprotectioninSEA · · · · · · · — Rating andDeductibles 0.10%. 0.075%; where afullrangeofperilsisaddedtheratechargedinorder of Rates forbuildingsinsured againstfire andlightningtendnowtobearound with atypicalpremium forpersonalliabilitycoveragebeingTHB500(USD16). Optional personalaccidentcoveragetypicallyattractsarateofaround 0.15%, deductible, althoughlevelsofdeductibletendtobeminimal. 0.65% dependingonconstruction,perilscovered, thesuminsured andsizeofthe typicallyfromlikely tovary 0.10%0.175%andcontentsratesfrom 0.25%to household comprehensive ratesforbuildingsofstandard constructionare now any competitivepressures. two claim-free years.Rating hasnotchangedovertheyearsandissubjectto Some oftheprivateinsurers are offering anoclaimsdiscountofupto25%after 0.28%. at Rating ofhouseholdpoliciesisbasedonthetypeconstructionandstarts dwelling housesfloatingontheriver/seashore(regardless ofconstructionclass). blockorcondominiumoflessthansixstoreysconstruction apartment to3.077for from alowof0.35forfirstclass andSTF)vary (excluding earthquake This ratessubdividessimplerisksintosomesevencategories.Thetariff rates SE-06/D.05/2013 Rates are regulated bythetariff introduced asaresult ofOJKCircular No accordingRates canvary totheconstruction,insured perilsandarea. Contents inbuilding(0.398%) (0.830%)。 apartments)rates ,3 Building(Flatsand 1A Building(Flatsandapartments)rates(0.109%) (Detached andnon-detacheddwelling)rates(0.645%)。 1A Building(Detachedandnon-detacheddwelling)rates(0.106%),3Building 2. Asmalldeductibleisusualforfloodandwindstorm. toClass1A,1Band comprises allotherconstructionnotconforming constructedfrompartially woodorothercombustiblematerials.Class3 materials otherthanbrickorconcrete. Class2isforbuildingswhichhavewalls concrete. ofnon-combustible Class1Ballowsforwallstobebuiltpartially tiles orconcrete orother non-combustible materialsandfloorsofreinforced construction comprisesabuildingconstructedofbrickorconcrete walls,roof of Rates are basedonfourconstructioncategories-1A,1B,2and3.Class1A cases asinglepolicydeductibleaslowUSD50may becharged. Deductibles rangefrom thelocalequivalentofUSD100to 500butinsome Most insurers donotsegregate ratesbygeographicalregion. protections offered. Underwriting factorsincludethenature ofthedwelling,typeconstructionand ratesrangebetween0.75%and2.00% Residential burglary/theft typhoon andfloodcover. householders' comprehensive from 0.10%to0.15%includingearthquake, fire andnaturalperils0.07% to0.10% fire andlightningonly0.04% to0.07% Typical elementsrateswouldbe: non-mandatory deductibleis2%ofvalueinsured.the mandatory For extendedcoverageinrespecttempest,floodandactsofGod ofearthquake,

Vietnam Thailand Philippines Myanmar Malaysia Lao PDR Indonesia Country Industrial andcommercialinsurance Limits andScopeofCover fidelity, theft,personalaccident,money, breakdown, machinery etc. fire, additionalperils,lossofprofits (frequently onadailybasis), that canbeadaptedforanytypeofbusiness,withcover including A fewcommercial packagepoliciesexist,usuallygenericforms the specifiedtypesofinsurance. cover. Domestic companiesare usuallyinsured inaccordance with medium-sized companiestypicallyhavefire andadditionalperils covered byallriskspackageswhilemostlocalandsmall Foreign-invested andlargecompaniesare mostlikelytobe or byastandard fire andnamedperilsinsurance. A typicalindustrialriskmaybecovered eitherbyanallriskspolicy derangement. andelectrical smoke damage,spontaneouscombustion,earthquake flood,waterdamage,impact, commotion, maliciousdamage,windstorm, special perils.Thesecompriseexplosion,aircraft, riots,strikes,civil It isestimatedthatonly15%orsooffire policiesare extendedtoinclude larger entities,whichare covered underIARpolicies. insured againstfire only, oralimitedrangeofnamedperils, andmostofthe The marketispolarisedbetweenthesmallestrisks,whichtendtobe offered asoptionalextensions. business interruption,personalaccidentandhospitalincomebenefitsare androbbery,basis: burglary employeedishonesty, thirdliability, party onanamedperils small/medium enterprises,althoughcoverisnormally combined packages.Packagecoversare availableandoffered to policies forsmallbusinessesratherthan,exampleshopkeepers' Domestic companiesprefer toissueseparatefire,andliability burglary andflood). earthquake cyclone/storm, policies currently includenaturalcatastrophe cover (fortempest, suggeststhatabout95%ofallindustrialproperty Market information andelectricalderangement. damage, spontaneouscombustion,earthquake flood,waterdamage,impact,smoke malicious damage,windstorm, Extended perilscompriseexplosion,aircraft, riots,strikes,civilcommotion, only andthelargerriskswhichare covered under industrial allriskspolicies. The marketisacontrastbetweensmallerriskswhichare insured againstfire included. There are nonon-standard exclusions,althoughwarrisksare usually andwarrisks. flood,aircraft,storm, impact,subsidence,landslip,burglary explosion,spontaneouscombustion, extensions, includingearthquake, cover, alsoappeartobeoffering afullrangeofnamedperilsasoptional The privateinsurers, however, whilstproviding asimilarbasicstandard of involving theapplicationofheat,are standard policy exclusions. subterranean fire,orheating,andanyprocess spontaneousfermentation domestic purposesisissued.Explosionresulting from fire,or earthquake a standard fire policyincludingexplosionofboilersand of gasusedfor generally. industrial propertiessuchashotels,condominiumsandrisks commotion topropertyallrisksforforeign-invested commercial and Cover variesfrom theusualfire, lightning,strikes,riots andcivil Typically, costs. compensationisbasedonrecovery cover. involved, thoughitissaidthatmostbanksnowinsistalsoonflood fire andlightningperilsonly, where banklendingis particularly derangement. Somesmallerrisksmaystillbeinsured againstbasic andelectrical damage, spontaneouscombustion,earthquake flood,waterdamage,impact,smoke malicious damage,windstorm, policy includeexplosion,aircraft, riot,strike,civilcommotion, and industry. Thespecialperilsextensionsonafire andlightning iswidelyusedforlarge-scalerisksinbusiness IAR's policyform andelectricalderangement. earthquake water damage,impact,smokespontaneouscombustion, tempest,flood(STF), commotion, maliciousdamage,windstorm, special perils.Thesecompriseexplosion,aircraft, riots,strikes,civil that between5%and10%offire policiesare extendedtoinclude Outside thecommercial andindustrialallrisksmarketitisestimated replaced bypackagetypepolicies,includingIAR. extended perils)are becominglessandcommonbeing industrial allriskspolicies.Simplefire policies(withorwithout against fire onlyandthelargerrisks,whichare covered under The marketispolarisedbetweensmallerrisks,whichare insured investigation asrequired anddevelopastrong reinsurance plan. The insurer iscautiousaboutfloodliability. Ifapplicable,conductdetailed such packages. Businessinterruptioncoverageisgenerallynotofferedforcible entry). in followingviolentand andburglary hurricane,typhoon,storm earthquake, lightning, andexplosion,waterdamagecanbeadded(whichincludes all includingneighbours'liabilitylimits.Basicmaterialdamagecoverisfire, levelsofcover,SME-type riskscanbecovered bypackageswithvarying business interruption. breakdownhave allriskspackages,someincludingmachinery and risks,especiallythosecontrolledThe largerproperty byforeign interests, factory:5‰ 、Furniture (non-sprinklered):0.4‰ factory:2‰ 、Garment (non-sprinklered):0.3‰)、Hotel (sprinklered):0.2-0.25‰)、Hotel officeModern office block(sprinklered):0.18-0.2‰ block 、Modern based onreinsurers' consent.Indicativecurrent ratinglevel: and nuclearfacilitiesormore mustbeindividuallynegotiatedand (USD43.58mn) establishments havingasuminsured ofVND1trn 0.05% and0.7%ofthesuminsured. Premium ratesfor between sum insured(USD43.58mn)vary lessthanVND1trn Prescribed annualpremium ratesforsuchestablishmentshavinga (0.09-1.5%) (0.5-1.0%)、Plasticsfactory factory hotel/office/condominium unsprinklered (0.4-0.6%)、Metalworking hotel/office/condominiumModern sprinklered (0.2-0.3%)、Modern Standard ratelevelinApril2018: risk (0.8-1.8%) (0.4-1.0%)、Warehouse (fire);Hotel (0.5-1.2%),Manufacturing typhoon/flood),including:Warehouse (non-hazardous) Indicative current ratinglevelsin2017(excludingearthquake, typhoons, flood)shallbe5% the commissionratefornaturalperilscoverage(earthquake, tariff) andforcyclone/flood theminimumpremium rateis0.05% policies coveringtheperil,exceptrisksratedundermotorcar is0.10%(applyingtoall the minimumpremium rateforearthquake circumstances.certain nodeductibleunlessenforcedThere byareinsurer isvirtually under (0.4%)、Light manufacturing(0.4-0.5%)Woodworking (1-1.5%) Typical basicfire ratesare asfollows:Office (0.28%)、Shoppingcentre to 0.80%. ago. Theseare basedonfourconstructioncategoriesrangingfrom 0.28% originally usedbythenewIndianinsurancecompanymore than60years It isunderstoodthatMyanmarinsurancecontinuestousetherates consideration. various riskfactorsuniquetoMyanmarwouldhavebetakeninto high, althoughastraightcomparisonofrateswouldbemisleading,as experienced inmostmajormarketstheregion andratesare relatively The Myanmainsurancemarketisnotsubjecttothecompetitivepressures based onthefire rate. average rateforalllocations.Thebusinessinterruptioniscalculated When twoormore locationsare involved,therate is calculatedatthe (0.005)。 impact damage(0.004)、landslipandsubsidence(0.081)、丛林火灾 tempest(0.015)、flood(0.086) and volcaniceruption-(0.010)、storm, non-industrial withboilers(0.003)、aircraft damage(0.005)、earthquake (0.056)、explosion -industrialwithboilers(0.002) The rateforothertypesofliabilityis(%):electricalinstallationclause General storage(hazardous) (0.355%) (0.321%)、Sawmill (Class1B)(0.825%)Metalcanmaking(0.160%) (0.0575%)、Hotel (Class1A)(0.126%)Textile (Class1B) factory As atJune2017,foraselectionofpropertyrisks:Office (Class1A) (1.5-3%)、Sawmill class3construction(<25%) Class 1office orhotel(1-1.1‰)、Non-hazardous manufacturer follows: typesareProperty dividedintothree categories,withratesas (3.012%)、Edible oilplant(2.686%) and RSMD:Highrisebuilding(2.395%)、Privatewarehouse Rates are inclusiveofcoverageinrespect offire, STF, earthquake subdivided intominimaandmaximaineachconstructionclass. Rates are dividedintothree constructionclassesandfurther Rating andDeductibles Typical disasterriskinsuranceprotectioninSEA Business Interruption issued alongwithnamedperilscovers. commercial packagepolicies.Somestand-alonepoliciesare included insomeIARpoliciesasanoptionalextra, wellasmost result tobegrowing demandisnotreported significantly. Coveris little activemarketingoftheproduct bybrokers orinsurers. Asa requested almostexclusivelybyforeign-invested clients.There is Business interruptionisarelatively newcoverinthemarketandis indemnity periodbeing12months. from threeIndemnity periodsvary to24monthswiththestandard gross profit totheamountofreduction thereby avoided. damage, butnotexceedingthesumproduced byapplyingtherateof have takenplaceduringtheindemnityperiodinconsequenceof diminishing thereductionwhich,butforexpenditure, inturnover would necessarily andreasonably incurred forthesolepurpose ofavoidingor In respect oftheincrease inthecostofworking- additionalexpenditure of thedamage ofthestandardindemnity periodfallsshort turnover, inconsequence rate ofgross profitduringthe totheamountbywhichturnover In respect ofareduction-thesumproduced inturnover byapplyingthe follows: an increase inthecostofworking.Theamountpayableasindemnityis The ABIwording coverslossofprofits duetoareduction and inturnover access where alimitationisrequired. named andlimitedto10%.Asimilarapproach isadoptedfordenialof limited tosuppliersandcustomersinIndonesiaallinstancestheyare power etc.Suppliers'andcustomers'extensionsare, where possible, for heavyrisks,suchasmining,chemical,oilandgas,textile,paper, wood, Business interruptiondeductiblesare lefttounderwriters'discretion except rate). from 15months(at96%ofthefire rate)to48months(at83%ofthefire Periods ofindemnitymore than12monthsare alsocatered for, ranging of thefire rate)toa12monthperiodofindemnity(at100%thefire rate). indemnity. Theoptionsrangefrom aonemonthperiodofindemnity(at20% Business interruptionpremium ratesare dependedupontheperiodof property,deductible asearthquake ie2.5%ofthesuminsured perlocation. businessinterruptionissubjecttothesameminimum Earthquake fronting, becauseofitsperceived complexity. Insurance isreluctant totransactthisclass,otherthanwhere itis foreign-invested clients.Local sources advisethatMyanma Business interruptioncoverisrarely effected otherthanbysome period -powergenerationequipment). specific risk(suchasinaremote area oralongerreplacement most commonis12months.Theinsurer setsatimedeductiblefor The compensationperiodisgenerally6monthsto24months,the months. The periodofcoverisusually12monthswithamaximum18 accordance withpolicyconditions. local businessescanalsomakeitdifficult toadjustclaimsin The standard ofbook-keepingandaccountingsystemsadoptedby and itistherefore rarely soldtothissectionofthelocalcommunity. agents) havedifficulties inunderstandingtheconceptofthisclass wording. TheindigenousLaobusinesscommunity(aswellas or foreign-connected businesseswhere itusuallyfollows theABI Business interruptionisrarely insured, risks, exceptforinternational 42 2019 Special Report ofDisaster andRiskintheBelt andRoadRegion Special Report 41

Vietnam Thailand Philippines Myanmar Malaysia Lao PDR Indonesia Country Property insurance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · his orherfamilyandpersonalliabilityinsurance. cover maybeextendedtoincludepersonalaccidentandhospitalincomeplansfortheinsured and typhoonandflood(attheinsured'searthquake, option) orrobbery,burglary ofwatertanksandpipes burstingand/oroverflowing vehicle impact,explosionandfallingaircraft fire, lightningandsmokedamage Householders' comprehensive policiestypicallycoverthefollowingbasicperils: householders' comprehensive fire andnaturalperils fire andlightningonly Three levelsofcoverare available: liability tothepublicupMYR100,000(USD21,459) loss ofrent (upto10%of thetotalsuminsured onbuildings) Extended coverage: volcaniceruption earthquake, flood, butexcludinglossordamagecausedbysubsidencelandslip hurricane, cyclone,typhoon,windstorm theft accompaniedbyforcibleorexit,anyattemptthereat andviolententry ofdomesticwatertanks,apparatusorpipes bursting oroverflowing insured oranymemberof hisorherfamily impact withbuildingsbyanyroad vehiclesoranimalsnotbelongingtounderthecontrol ofthe aircraft dropped andotheraerialdevices and/orarticles therefrom fire, lightning,thunderbolt,subterraneanfire, explosion Basic coverincludeslossordamagecausedby: Policy coveringeneralfollowstheAssociationofBritishInsurers (ABI)wording. earthquake, windstorm andflood.Thebasisofcoveristypicallyreinstatement windstorm forthebuildingandindemnitycontents. earthquake, covergenerally takenbylocalhomeownerscomprisesfire,The alternative theftandafullrangeofnamedperilsincluding personal accidentfortheoccupierandfamily as above,forbuildings flood, fallingtrees/poles,theft,malicious damage,waterSRCCandimpact) earthquake, fire andnamedperils,oncontents,includinglossofrent cover(additionalperils beingexplosion,lightning,storm, Cover available is as follows: policy forms. The scopeofcomprehensive coverisfairlystandard andgenerallyfollowstheUKAustralianhomeowner Some domesticinsurancecompaniesissueseparatefire andtheftpolicies insured dwelling;generalliabilityandemployers'insuranceformaidsdrivers. accommodation;lossoflifetotheinsuredof temporary orfamilymember(s)incurred becauseoffire orrobberyatthe removal ofpersonaleffects;Optional sectionsinahouseholdpolicyinclude:coverforpersonalaccident;temporary cost offlooddamage. the amountoffloodcovertheyprovide, whichhaveahistory especiallyforproperties reinsurance andconditions.Since2013capacityhasreturnedtothemarket,butsomedomesticinsurers terms stilllimit After the2011floods,coverforthisperilwasrestricted orremoved from manypolicies,followingsignificantchangesto insurersMost oftheinternational alsooffer "allrisks"options. theft and/orallrisksforvaluables. waterdamage,vehicleimpact,andaircraft impact,andforcontents,similarperilsplus lightning, explosion,windstorm, broader coverageoptioncoveringbuildingsagainstfire, withanalternative floodandearthquake, example, windstorm, In general,twotypesofcoverageare offered bymostinsurers, onealow-costoption, typicallycoveringfire plus,for as above,plusburglary as above,plusglassandelectricaldamage rainwater enteringthebuildingresulting from covered perils.) and hurricane,cycloneorwindstorm, and pipesfrom withinthebuilding,butalsoearthquake, ofwatertanks,apparatus as above,pluswaterdamage(notonlyincludesburstingandoverflowing fire, lightningandexplosion,familyliability, neighbours'liability Typically thefouroptionsoffered are asfollows: Most companiesoffer fourpackages,withincreasing premium forwidercover. removal and/orflood,earthquake, ofdebris. typhoon, windstorm vehicle impact smoke;riot, strike,maliciousdamagepluscivilcommotionburglary impact offallingaircraft orobjectsfallingdropped from aircraft fire, lightning,explosionresulting from thepressure ofgasesorchemicalreaction; A typicalpolicyincludes: Limits andScopeofCover aircraft, impact, subsidence, landslip, burglary andwarrisks. aircraft, impact,subsidence,landslip,burglary flood, explosion,spontaneouscombustion,storm, of namedperilsasoptionalextensions,includingearthquake, The privateinsurers, however, whilstproviding asimilarbasicstandard ofcover, alsoappeartobeoffering afullrange companieswhereinternational MyanmaInsuranceprovides fronting facilities. and civilcommotion.Widercovermaybearrangedfrom andtendstobefor timetotime,butitisnotthenorm, The standard coveroffered byMyanmaInsuranceislimitedtofire andlightningwithanextensiontoincludestrikes,riots Typical disasterriskinsuranceprotectioninSEA · · · · · · · — Rating andDeductibles cases asinglepolicydeductibleaslowUSD50may becharged. Deductibles rangefrom thelocalequivalentofUSD100to 500butinsome Most insurers donotsegregate ratesbygeographicalregion. protections offered. Underwriting factorsincludethenature ofthedwelling,typeconstructionand 0.10%. 0.075%; where afullrangeofperilsisaddedtheratechargedinorder of Rates forbuildingsinsured againstfire andlightningtendnowtobearound with atypicalpremium forpersonalliabilitycoveragebeingTHB500(USD16). Optional personalaccidentcoveragetypicallyattractsarateofaround 0.15%, deductible, althoughlevelsofdeductibletendtobeminimal. 0.65% dependingonconstruction,perilscovered, thesuminsured andsizeofthe typicallyfromlikely tovary 0.10%0.175%andcontentsratesfrom 0.25%to household comprehensive ratesforbuildingsofstandard constructionare now ratesrangebetween0.75%and2.00% Residential burglary/theft typhoon andfloodcover. householders' comprehensive from 0.10%to0.15%includingearthquake, fire andnaturalperils0.07% to0.10% fire andlightningonly0.04% to0.07% Typical elementsrateswouldbe: non-mandatory deductibleis2%ofvalueinsured.the mandatory For extendedcoverageinrespecttempest,floodandactsofGod ofearthquake, any competitivepressures. two claim-free years.Rating hasnotchangedovertheyearsandissubjectto Some oftheprivateinsurers are offering anoclaimsdiscountofupto25%after 0.28%. at Rating ofhouseholdpoliciesisbasedonthetypeconstructionandstarts Contents inbuilding(0.398%) (0.830%)。 apartments)rates ,3 Building(Flatsand 1A Building(Flatsandapartments)rates(0.109%) (Detached andnon-detacheddwelling)rates(0.645%)。 1A Building(Detachedandnon-detacheddwelling)rates(0.106%),3Building 2. Asmalldeductibleisusualforfloodandwindstorm. toClass1A,1Band comprises allotherconstructionnotconforming constructedfrompartially woodorothercombustiblematerials.Class3 materials otherthanbrickorconcrete. Class2isforbuildingswhichhavewalls concrete. ofnon-combustible Class1Ballowsforwallstobebuiltpartially tiles orconcrete orother non-combustible materialsandfloorsofreinforced construction comprisesabuildingconstructedofbrickorconcrete walls,roof of Rates are basedonfourconstructioncategories-1A,1B,2and3.Class1A dwelling housesfloatingontheriver/seashore(regardless ofconstructionclass). blockorcondominiumoflessthansixstoreysconstruction apartment to3.077for from alowof0.35forfirstclass andSTF)vary (excluding earthquake This ratessubdividessimplerisksintosomesevencategories.Thetariff rates SE-06/D.05/2013 Rates are regulated bythetariff introduced asaresult ofOJKCircular No accordingRates canvary totheconstruction,insured perilsandarea.

Vietnam Thailand Philippines Myanmar Malaysia Lao PDR Indonesia Country Industrial andcommercialinsurance Limits andScopeofCover fidelity, theft,personalaccident,money, breakdown, machinery etc. fire, additionalperils,lossofprofits (frequently onadailybasis), that canbeadaptedforanytypeofbusiness,withcover including A fewcommercial packagepoliciesexist,usuallygenericforms the specifiedtypesofinsurance. cover. Domestic companiesare usuallyinsured inaccordance with medium-sized companiestypicallyhavefire andadditionalperils covered byallriskspackageswhilemostlocalandsmall Foreign-invested andlargecompaniesare mostlikelytobe or byastandard fire andnamedperilsinsurance. A typicalindustrialriskmaybecovered eitherbyanallriskspolicy derangement. andelectrical smoke damage,spontaneouscombustion,earthquake flood,waterdamage,impact, commotion, maliciousdamage,windstorm, special perils.Thesecompriseexplosion,aircraft, riots,strikes,civil It isestimatedthatonly15%orsooffire policiesare extendedtoinclude larger entities,whichare covered underIARpolicies. insured againstfire only, oralimitedrangeofnamedperils, andmostofthe The marketispolarisedbetweenthesmallestrisks,whichtendtobe offered asoptionalextensions. business interruption,personalaccidentandhospitalincomebenefitsare androbbery,basis: burglary employeedishonesty, thirdliability, party onanamedperils small/medium enterprises,althoughcoverisnormally combined packages.Packagecoversare availableandoffered to policies forsmallbusinessesratherthan,exampleshopkeepers' Domestic companiesprefer toissueseparatefire,andliability burglary andflood). earthquake cyclone/storm, policies currently includenaturalcatastrophe cover (fortempest, suggeststhatabout95%ofallindustrialproperty Market information andelectricalderangement. damage, spontaneouscombustion,earthquake flood,waterdamage,impact,smoke malicious damage,windstorm, Extended perilscompriseexplosion,aircraft, riots,strikes,civilcommotion, only andthelargerriskswhichare covered under industrial allriskspolicies. The marketisacontrastbetweensmallerriskswhichare insured againstfire included. There are nonon-standard exclusions,althoughwarrisksare usually andwarrisks. flood,aircraft,storm, impact,subsidence,landslip,burglary explosion,spontaneouscombustion, extensions, includingearthquake, cover, alsoappeartobeoffering afullrangeofnamedperilsasoptional The privateinsurers, however, whilstproviding asimilarbasicstandard of involving theapplicationofheat,are standard policy exclusions. subterranean fire,orheating,andanyprocess spontaneousfermentation domestic purposesisissued.Explosionresulting from fire,or earthquake a standard fire policyincludingexplosionofboilersand of gasusedfor generally. industrial propertiessuchashotels,condominiumsandrisks commotion topropertyallrisksforforeign-invested commercial and Cover variesfrom theusualfire, lightning,strikes,riots andcivil Typically, costs. compensationisbasedonrecovery cover. involved, thoughitissaidthatmostbanksnowinsistalsoonflood fire andlightningperilsonly, where banklendingis particularly derangement. Somesmallerrisksmaystillbeinsured againstbasic andelectrical damage, spontaneouscombustion,earthquake flood,waterdamage,impact,smoke malicious damage,windstorm, policy includeexplosion,aircraft, riot,strike,civilcommotion, and industry. Thespecialperilsextensionsonafire andlightning iswidelyusedforlarge-scalerisksinbusiness IAR's policyform andelectricalderangement. earthquake water damage,impact,smokespontaneouscombustion, tempest,flood(STF), commotion, maliciousdamage,windstorm, special perils.Thesecompriseexplosion,aircraft, riots,strikes,civil that between5%and10%offire policiesare extendedtoinclude Outside thecommercial andindustrialallrisksmarketitisestimated replaced bypackagetypepolicies,includingIAR. extended perils)are becominglessandcommonbeing industrial allriskspolicies.Simplefire policies(withorwithout against fire onlyandthelargerrisks,whichare covered under The marketispolarisedbetweensmallerrisks,whichare insured investigation asrequired anddevelopastrong reinsurance plan. The insurer iscautiousaboutfloodliability. Ifapplicable,conductdetailed such packages. Businessinterruptioncoverageisgenerallynotofferedforcible entry). in followingviolentand andburglary hurricane,typhoon,storm earthquake, lightning, andexplosion,waterdamagecanbeadded(whichincludes all includingneighbours'liabilitylimits.Basicmaterialdamagecoverisfire, levelsofcover,SME-type riskscanbecovered bypackageswithvarying business interruption. breakdownhave allriskspackages,someincludingmachinery and risks,especiallythosecontrolledThe largerproperty byforeign interests, factory:5‰ 、Furniture (non-sprinklered):0.4‰ factory:2‰ 、Garment (non-sprinklered):0.3‰)、Hotel (sprinklered):0.2-0.25‰)、Hotel officeModern office block(sprinklered):0.18-0.2‰ block 、Modern based onreinsurers' consent.Indicativecurrent ratinglevel: and nuclearfacilitiesormore mustbeindividuallynegotiatedand (USD43.58mn) establishments havingasuminsured ofVND1trn 0.05% and0.7%ofthesuminsured. Premium ratesfor between sum insured(USD43.58mn)vary lessthanVND1trn Prescribed annualpremium ratesforsuchestablishmentshavinga (0.09-1.5%) (0.5-1.0%)、Plasticsfactory factory hotel/office/condominium unsprinklered (0.4-0.6%)、Metalworking hotel/office/condominiumModern sprinklered (0.2-0.3%)、Modern Standard ratelevelinApril2018: risk (0.8-1.8%) (0.4-1.0%)、Warehouse (fire);Hotel (0.5-1.2%),Manufacturing typhoon/flood),including:Warehouse (non-hazardous) Indicative current ratinglevelsin2017(excludingearthquake, typhoons, flood)shallbe5% the commissionratefornaturalperilscoverage(earthquake, tariff) andforcyclone/flood theminimumpremium rateis0.05% policies coveringtheperil,exceptrisksratedundermotorcar is0.10%(applyingtoall the minimumpremium rateforearthquake circumstances.certain nodeductibleunlessenforcedThere byareinsurer isvirtually under (0.4%)、Light manufacturing(0.4-0.5%)Woodworking (1-1.5%) Typical basicfire ratesare asfollows:Office (0.28%)、Shoppingcentre to 0.80%. ago. Theseare basedonfourconstructioncategoriesrangingfrom 0.28% originally usedbythenewIndianinsurancecompanymore than60years It isunderstoodthatMyanmarinsurancecontinuestousetherates consideration. various riskfactorsuniquetoMyanmarwouldhavebetakeninto high, althoughastraightcomparisonofrateswouldbemisleading,as experienced inmostmajormarketstheregion andratesare relatively The Myanmainsurancemarketisnotsubjecttothecompetitivepressures based onthefire rate. average rateforalllocations.Thebusinessinterruptioniscalculated When twoormore locationsare involved,therate is calculatedatthe (0.005)。 impact damage(0.004)、landslipandsubsidence(0.081)、丛林火灾 tempest(0.015)、flood(0.086) and volcaniceruption-(0.010)、storm, non-industrial withboilers(0.003)、aircraft damage(0.005)、earthquake (0.056)、explosion -industrialwithboilers(0.002) The rateforothertypesofliabilityis(%):electricalinstallationclause General storage(hazardous) (0.355%) (0.321%)、Sawmill (Class1B)(0.825%)Metalcanmaking(0.160%) (0.0575%)、Hotel (Class1A)(0.126%)Textile (Class1B) factory As atJune2017,foraselectionofpropertyrisks:Office (Class1A) (1.5-3%)、Sawmill class3construction(<25%) Class 1office orhotel(1-1.1‰)、Non-hazardous manufacturer follows: typesareProperty dividedintothree categories,withratesas (3.012%)、Edible oilplant(2.686%) and RSMD:Highrisebuilding(2.395%)、Privatewarehouse Rates are inclusiveofcoverageinrespect offire, STF, earthquake subdivided intominimaandmaximaineachconstructionclass. Rates are dividedintothree constructionclassesandfurther Rating andDeductibles Typical disasterriskinsuranceprotectioninSEA Business Interruption issued alongwithnamedperilscovers. commercial packagepolicies.Somestand-alonepoliciesare included insomeIARpoliciesasanoptionalextra, wellasmost result tobegrowing demandisnotreported significantly. Coveris little activemarketingoftheproduct bybrokers orinsurers. Asa requested almostexclusivelybyforeign-invested clients.There is Business interruptionisarelatively newcoverinthemarketandis indemnity periodbeing12months. from threeIndemnity periodsvary to24monthswiththestandard gross profit totheamountofreduction thereby avoided. damage, butnotexceedingthesumproduced byapplyingtherateof have takenplaceduringtheindemnityperiodinconsequenceof diminishing thereductionwhich,butforexpenditure, inturnover would necessarily andreasonably incurred forthesolepurpose ofavoidingor In respect oftheincrease inthecostofworking- additionalexpenditure of thedamage ofthestandardindemnity periodfallsshort turnover, inconsequence rate ofgross profitduringthe totheamountbywhichturnover In respect ofareduction-thesumproduced inturnover byapplyingthe follows: an increase inthecostofworking.Theamountpayableasindemnityis The ABIwording coverslossofprofits duetoareduction and inturnover access where alimitationisrequired. named andlimitedto10%.Asimilarapproach isadoptedfordenialof limited tosuppliersandcustomersinIndonesiaallinstancestheyare power etc.Suppliers'andcustomers'extensionsare, where possible, for heavyrisks,suchasmining,chemical,oilandgas,textile,paper, wood, Business interruptiondeductiblesare lefttounderwriters'discretion except rate). from 15months(at96%ofthefire rate)to48months(at83%ofthefire Periods ofindemnitymore than12monthsare alsocatered for, ranging of thefire rate)toa12monthperiodofindemnity(at100%thefire rate). indemnity. Theoptionsrangefrom aonemonthperiodofindemnity(at20% Business interruptionpremium ratesare dependedupontheperiodof property,deductible asearthquake ie2.5%ofthesuminsured perlocation. businessinterruptionissubjecttothesameminimum Earthquake fronting, becauseofitsperceived complexity. Insurance isreluctant totransactthisclass,otherthanwhere itis foreign-invested clients.Local sources advisethatMyanma Business interruptioncoverisrarely effected otherthanbysome period -powergenerationequipment). specific risk(suchasinaremote area oralongerreplacement most commonis12months.Theinsurer setsatimedeductiblefor The compensationperiodisgenerally6monthsto24months,the months. The periodofcoverisusually12monthswithamaximum18 accordance withpolicyconditions. local businessescanalsomakeitdifficult toadjustclaimsin The standard ofbook-keepingandaccountingsystemsadoptedby and itistherefore rarely soldtothissectionofthelocalcommunity. agents) havedifficulties inunderstandingtheconceptofthisclass wording. TheindigenousLaobusinesscommunity(aswellas or foreign-connected businesseswhere itusuallyfollows theABI Business interruptionisrarely insured, risks, exceptforinternational 42 2019 43 Typical disaster risk insurance protection in SEA Typical disaster risk insurance protection in SEA 44

Construction and Erection all Risks Insurance Machinery Breakdown Insurance

Limits and Scope of Cover Rating and Deductibles Major hazards of compensation Limits and Scope of Cover Rating and Deductibles Country Country

Cover generally follows the standard Munich Re policy wording. Average premium rates are indicated below: The major hazards are flooding and vibration, weakening and Stand-alone cover follows the standard Munich Re policy wording excluding fire, natural perils and Whether covered by a separate policy (associated with an IAR policy) or inclusively in the IAR policy, Contractors' plant may be insured under a CAR policy, or a shopping mall (maximum five storeys):0.1%-0.12%; removal of support. Pile driving with consequent damage to third theft. Cover is sometimes taken out on a first loss basis. rates for machinery cover are normally the equivalent of up to 30% of the combined property material separate plant all risks policy may be issued, depending on the office/hotel:0.08%-0.1%。 party property, causing cracking, weakening and removal of Third party coverage is usually provided under a separate policy. damage and business interruption rate. Deductibles vary from USD 2,500 to USD 5,000 for material Indonesia

Indonesia nature of the insurable interest. Deductibles range as follows: support, has been a regular cause of claims. damage, and time deductibles from between two and seven days for small industries. The material USD 2,500 to USD 50,000 for major perils;earthquake 5% of Subsidence and landslide are also risks to be considered, in damage deductible for a large risk may be USD 50,000 and in the case of a petrochemical plant it loss;USD 5,000 to USD 50,000 for vibration and weakening of particular on rural road construction projects. Earthquake is a can be as high as USD 5mn to USD 10mn with time deductibles up to 60 days. support;USD 2,500 to USD 15,000 for others;nil to USD 5,000 for potential major hazard, depending on where work is located. Theft In the case of power plants where an operator's cover is arranged, deductibles can range from USD third party property damage. of materials is a continual problem, and underwriters usually vet 15,000 to USD 500,000 in respect of machinery breakdown cover. Similar covers in respect of the security measures. petrochemical industry would be subject to deductibles between USD 1mn and USD 7.5mn. Rates for separate policies, which are written with international wordings, are determined by overseas reinsurers in the international facultative market and are likely to range between 0.2% and 0.3%. Cover generally follows the standard Munich Re policy wording. Rates for all major projects are quoted from outside the market and depend The main hazard relating to construction risks is the annual on project details, underwriting considerations and coverage so that monsoon season from May to October. This can caused project generalisations are not particularly helpful. delays due to floods and subsidence. Lao PDR Deductibles would normally be specially applied to flood risks, and may be as much as USD 500,000 for large projects, with a USD 10,000 to USD 20,000 excess for other perils, but as little as USD 1,000 for smaller Standard wordings from international markets are used, most commonly the ABI or Allianz all (data unavailable) commercial or industrial sites. risks wordings. Lao PDR Construction and erection all risks contracts are written as a This is a non-tariff class and the market is extremely competitive. The most significant hazards associated with construction work in separate class within insurers' engineering departments. Many Local sources suggest that CAR rates for low-rise building Malaysia are flooding, subsidence and landslide (particularly in hilly companies use Munich Re or Swiss Re policy forms. In the case of contracts can be as low as 0.05%, whilst high-rise building rates terrain). Theft on building sites can also be problematic. Malaysia major projects, manuscript wordings are developed by brokers in vary between 0.1% and 0.175%. conjunction with reinsurers. Rates may be higher if international reinsurance is involved, Many companies use the Munich Re policy wording. Explosion, windstorm and liability can be Rating for large or complex risks is determined usually by the international market or reinsurers. Standard policy exclusions include war, radioactive contamination, whether because of reasons of capacity or the nature of the risk. included by extension. Standard exclusions include fire, theft, war risks and radioactive contamination. Deductibles for business interruption covers can be as high as 60 days. deliberate acts, loss discovered at stock inventories, mechanical Deductibles may be from MYR 5,000 to MYR 10,000 (USD 1,073 to Where machinery breakdown is included in an all risks policy it is usual for a sub-limit to be applied. and electrical derangement and wear and tear. USD 2,146) or expressed as a percentage of the loss, say 5% to Malaysia Separate deductibles are imposed for material damage and business interruption. Optional covers include contractors' plant and equipment, 10%. Theft sometimes attracts a separate deductible, for example although, in most cases, a separate policy is arranged, either on a the higher of a range between MYR 10,000 and MYR 25,000 (USD project basis or for the major contractors on an annual basis. 2,146 and USD 5,385) or 10% of the loss.

Cover usually follows the standard Munich Re or Swiss Re policy wordings Rates and terms have historically followed those set by The country does not have a history of damaging earthquakes, Munich Re's policy wordings for machinery breakdown are used, along with that developed by Allianz (data unavailable) tailored to specific contracts where appropriate. international underwriters or professional reinsurance companies although frequency causes some alarm, both among the for electronic equipment. The electronic equipment policy excludes, for example, damage Construction plant and machinery is insured under the same policy as depending upon the circumstances of the project and the insurance industry and construction fraternity, and thus the Myanmar construction works, but sometimes separate annual policies are issued. caused by earthquake, typhoon and loss by theft and failure of public supply. It does cover main contractors involved. Myanmar Earthquake Committee. Myanmar Standard exclusions include: loss or damage occasioned by fire. war and terrorism The exposure is most severe along the main rivers the Ayeyarwady · radioactive contamination and nuclear reaction and Chindwin, from Mandalay to the delta area and covering the · any act of default on the part of the insured or his or her representatives · central plain area including Kalewa, Monywa, Myingyan, Minbu and partial or total cessation of work exceeding four weeks which has not been · Pye. notified to insurers Landslip resulting from heavy monsoon rain is a particular hazard, which can affect road building and other projects. In general cover follows the standard Munich Re policy wording in respect of stand-alone machinery Rates for large risks are quoted in consultation with reinsurers on a case by case basis. breakdown excluding fire, natural perils and theft, consequential loss, third party liability and existing Rates for stand-alone machinery breakdown policies, which are written using international wordings, faults or defects. Chemical explosion is also excluded, other than flue gas explosion in boilers. are determined by overseas reinsurers in the international facultative market and are likely to range Cover generally follows the standard Munich Re policy wording. Typical current CAR premium rates are as follows: residential · third party property damage due to inadequate site security and Other insurance companies cover: building: 1.0‰-1.25‰、office/commercial buildings (up to loss prevention Philippines between 0.15% and 0.3%. Deductibles vary from USD 2,500 to USD 5,000 for material damage, and time deductibles from · material damage for contract works, construction plant and five-storey): 1.2‰- 1.5‰、high-rise buildings (max of five · damage to surrounding property due to driven piles when

Philippines between two and seven days for small industries. The material damage deductible for a large risk equipment, specified construction machinery and clearance of basements) 1.2‰-1.5‰、 factories/warehouses (up to two-storey) construction involves basements may be as high as USD 500,000 to USD 1mn and in the case of a petrochemical plant it can be as debris 1.2‰- 1.8‰、 bridges (max three spans only) 0.25‰-1.5‰。 · flooding of construction and erection sites due to storms and high as USD 5mn to USD 10mn. Time deductibles on major risks can be as much as 60 days. · earthquake, volcanic eruption and tsunami together with storm, Deductibles for condominiums and office buildings are 2.5% of typhoons In the case of independent power plants where an operator's cover is arranged, deductibles range cyclone, flood and landslide; these perils bear separate limits of estimated contract value for major perils and 1.5% for others. For · earthquake damage from USD 50,000 (minimum) to USD 2.5mn. indemnity and deductibles that do not correspond to the other roads (excluding wet risks) deductibles start at PHP 1mn (USD · landslip and subsidence of road and bridge projects caused by construction/erection perils 19,657). flooding following typhoon · third party liability for bodily injury and property damage with limits Typical current EAR premium rates are as follows:power plants · loss and damage to machinery during testing and commissioning of liability that apply in respect of any one accident, or occurrence 1.3‰-2.5‰;water supply, purification, sewage treatment due to negligent operation or series of accidents or occurrences arising out of one event 1.25‰-2.00‰;garbage handling and treatment, incinerators, General exclusions consist of loss as a result of war, civil war, riot, remote heating installations 2.0‰-2.5‰;radio, television, Machinery breakdown is normally covered as an extension of an industrial all risks policy. Some When machinery breakdown and business interruption are covered as extensions to an IAR policy, strike and malicious damage together with nuclear radiation or telephone 1.2‰-2.0‰;building industry 1.2‰-2.0‰;pulp and insurers use the UK ABI wording as a base, but this is often extended by brokers. the additional rates charged are often minimal and sometimes the cover is included free of charge. radioactive contamination. Other exclusions embrace losses paper industry 2.0‰-2.5‰;printing and packing materials

Thailand Deductibles are often no more than THB 100,000 (USD 3,130) for material damage, with time consequent upon wilful acts of the insured or his or her industry 1.2‰- 2.5‰;textile industry 1.50‰-2.25‰。 deductibles for business interruption of between two and seven days for small industries. The representatives and cessation of work whether total or partial. Contract plant and equipment when insured with contract works material damage deductible for a large risk such as a power or petrochemical plant may be upwards generally carry the same premium rate as contract works. When of USD 5mn, and time deductibles can be as much as 60 days. insured in isolation cranes can attract a rate of between 1.25% and 3.00%.

Construction and erection insurance are written as separate A typical annual rate for a straightforward civil project would be The major hazards are flooding and, to a lesser extent, vibration classes, usually on the Munich Re or Swiss Re policy forms. between 0.03% and 0.10%, depending on the nature of the and weakening and removal of support. Subsidence and landslide Machinery breakdown may be covered as part of an industrial all risks insurance or other package Cover for textile machinery is available at 0.10% to 0.25%, subject to deductible of 5% of each and policy, attached by endorsement to a named perils policy or issued as a separate policy. Cover under every loss with a minimum of VND 2.08mn (USD 90.64).

Thailand Contractors' plant and machinery is insured either on a project exposure, with deductibles varying between THB 10,000 (USD 313) are also potential risks, particularly around Metropolitan Bangkok.

basis, or covered by an annual policy, depending on the activities and THB 50,000 (USD 1,565). A high-rise office construction over a Vietnam package policies is the most common, occasionally for full value but usually with a sub-limit of about The average rate for most types of machinery is 0.08%. of the contractors. two-year period would pay a rate of around 0.125% to 0.15% with a USD 500,000. Business interruption may be included as a separate section of the machinery The rate for the insurance of a steam boiler is 0.25% to 0.30%. deductible of THB 100,000 (USD 3,130). breakdown policy or, more usually, insured under a separate policy, but there is little or no demand for Lower rates are applied when the risks are included in a package policy, or no charge at all is made. the cover. Cover generally follows the standard Munich Re policy wording. Circular No 329/2016/TT-BC dated 16 December 2016 provided The major hazards for contract works are related to natural perils, in Computer equipment is covered under an electronic equipment policy which excludes damage Typical local insurance business in Vietnam includes: project guidelines in respect of premium schedules. particular typhoons and tropical storms: these can cause caused by earthquake, typhoon and loss by theft and failure of public supply but covers loss or damage occasioned by fire.

Vietnam works, contractor's plant and machinery, third party liability, delay in widespread flooding which, in turn, provokes landslip and start up, marine cargo. subsidence. The exposure is particularly severe in the centre of the The standard boiler and pressure vessel policy in use covers damage other than by fire caused by In the case of erection risks, Munich Re's standard policy country, and frequent losses are sustained to road projects from and solely due to explosion or collapse, including also third party cover. Exclusions include defects wording for contract works (machinery), translated into landslides and foundations being washed away. due to wear and tear, and failure of individual water tubes in boilers, locomotive or other Vietnamese, is used. multi-tubular types, in superheaters or in economisers. Standard CAR policy exclusions are: war and terrorism, radioactive Construction plant and machinery is insurable on a new, replacement value basis but if the values contamination and nuclear reaction, any act of default on the part of insured are less than the actual new replacement cost, average is applied. Standard exclusions the insured or their representatives, any partial or total cessation of include wear, tear and deterioration, mechanical and electrical breakdown, loss or damage resulting work exceeding four weeks which has not been notified to insurers. from immersion in tidal waters, loss in transit and loss or damage resulting from wilful acts or neglect. Contractors' plant and equipment may be insured under the same policy as the contract works but it is usual for a separate annual policy to be issued.

Special Report of Disaster and Risk in the Belt and Road Region 2019 43 Typical disaster risk insurance protection in SEA Typical disaster risk insurance protection in SEA 44

Construction and Erection all Risks Insurance Machinery Breakdown Insurance

Limits and Scope of Cover Rating and Deductibles Major hazards of compensation Limits and Scope of Cover Rating and Deductibles Country Country

Cover generally follows the standard Munich Re policy wording. Average premium rates are indicated below: The major hazards are flooding and vibration, weakening and Stand-alone cover follows the standard Munich Re policy wording excluding fire, natural perils and Whether covered by a separate policy (associated with an IAR policy) or inclusively in the IAR policy, Contractors' plant may be insured under a CAR policy, or a shopping mall (maximum five storeys):0.1%-0.12%; removal of support. Pile driving with consequent damage to third theft. Cover is sometimes taken out on a first loss basis. rates for machinery cover are normally the equivalent of up to 30% of the combined property material separate plant all risks policy may be issued, depending on the office/hotel:0.08%-0.1%。 party property, causing cracking, weakening and removal of Third party coverage is usually provided under a separate policy. damage and business interruption rate. Deductibles vary from USD 2,500 to USD 5,000 for material Indonesia

Indonesia nature of the insurable interest. Deductibles range as follows: support, has been a regular cause of claims. damage, and time deductibles from between two and seven days for small industries. The material USD 2,500 to USD 50,000 for major perils;earthquake 5% of Subsidence and landslide are also risks to be considered, in damage deductible for a large risk may be USD 50,000 and in the case of a petrochemical plant it loss;USD 5,000 to USD 50,000 for vibration and weakening of particular on rural road construction projects. Earthquake is a can be as high as USD 5mn to USD 10mn with time deductibles up to 60 days. support;USD 2,500 to USD 15,000 for others;nil to USD 5,000 for potential major hazard, depending on where work is located. Theft In the case of power plants where an operator's cover is arranged, deductibles can range from USD third party property damage. of materials is a continual problem, and underwriters usually vet 15,000 to USD 500,000 in respect of machinery breakdown cover. Similar covers in respect of the security measures. petrochemical industry would be subject to deductibles between USD 1mn and USD 7.5mn. Rates for separate policies, which are written with international wordings, are determined by overseas reinsurers in the international facultative market and are likely to range between 0.2% and 0.3%. Cover generally follows the standard Munich Re policy wording. Rates for all major projects are quoted from outside the market and depend The main hazard relating to construction risks is the annual on project details, underwriting considerations and coverage so that monsoon season from May to October. This can caused project generalisations are not particularly helpful. delays due to floods and subsidence. Lao PDR Deductibles would normally be specially applied to flood risks, and may be as much as USD 500,000 for large projects, with a USD 10,000 to USD 20,000 excess for other perils, but as little as USD 1,000 for smaller Standard wordings from international markets are used, most commonly the ABI or Allianz all (data unavailable) commercial or industrial sites. risks wordings. Lao PDR Construction and erection all risks contracts are written as a This is a non-tariff class and the market is extremely competitive. The most significant hazards associated with construction work in separate class within insurers' engineering departments. Many Local sources suggest that CAR rates for low-rise building Malaysia are flooding, subsidence and landslide (particularly in hilly companies use Munich Re or Swiss Re policy forms. In the case of contracts can be as low as 0.05%, whilst high-rise building rates terrain). Theft on building sites can also be problematic. Malaysia major projects, manuscript wordings are developed by brokers in vary between 0.1% and 0.175%. conjunction with reinsurers. Rates may be higher if international reinsurance is involved, Many companies use the Munich Re policy wording. Explosion, windstorm and liability can be Rating for large or complex risks is determined usually by the international market or reinsurers. Standard policy exclusions include war, radioactive contamination, whether because of reasons of capacity or the nature of the risk. included by extension. Standard exclusions include fire, theft, war risks and radioactive contamination. Deductibles for business interruption covers can be as high as 60 days. deliberate acts, loss discovered at stock inventories, mechanical Deductibles may be from MYR 5,000 to MYR 10,000 (USD 1,073 to Where machinery breakdown is included in an all risks policy it is usual for a sub-limit to be applied. and electrical derangement and wear and tear. USD 2,146) or expressed as a percentage of the loss, say 5% to Malaysia Separate deductibles are imposed for material damage and business interruption. Optional covers include contractors' plant and equipment, 10%. Theft sometimes attracts a separate deductible, for example although, in most cases, a separate policy is arranged, either on a the higher of a range between MYR 10,000 and MYR 25,000 (USD project basis or for the major contractors on an annual basis. 2,146 and USD 5,385) or 10% of the loss.

Cover usually follows the standard Munich Re or Swiss Re policy wordings Rates and terms have historically followed those set by The country does not have a history of damaging earthquakes, Munich Re's policy wordings for machinery breakdown are used, along with that developed by Allianz (data unavailable) tailored to specific contracts where appropriate. international underwriters or professional reinsurance companies although frequency causes some alarm, both among the for electronic equipment. The electronic equipment policy excludes, for example, damage Construction plant and machinery is insured under the same policy as depending upon the circumstances of the project and the insurance industry and construction fraternity, and thus the Myanmar construction works, but sometimes separate annual policies are issued. caused by earthquake, typhoon and loss by theft and failure of public supply. It does cover main contractors involved. Myanmar Earthquake Committee. Myanmar Standard exclusions include: loss or damage occasioned by fire. war and terrorism The exposure is most severe along the main rivers the Ayeyarwady · radioactive contamination and nuclear reaction and Chindwin, from Mandalay to the delta area and covering the · any act of default on the part of the insured or his or her representatives · central plain area including Kalewa, Monywa, Myingyan, Minbu and partial or total cessation of work exceeding four weeks which has not been · Pye. notified to insurers Landslip resulting from heavy monsoon rain is a particular hazard, which can affect road building and other projects. In general cover follows the standard Munich Re policy wording in respect of stand-alone machinery Rates for large risks are quoted in consultation with reinsurers on a case by case basis. breakdown excluding fire, natural perils and theft, consequential loss, third party liability and existing Rates for stand-alone machinery breakdown policies, which are written using international wordings, faults or defects. Chemical explosion is also excluded, other than flue gas explosion in boilers. are determined by overseas reinsurers in the international facultative market and are likely to range Cover generally follows the standard Munich Re policy wording. Typical current CAR premium rates are as follows: residential · third party property damage due to inadequate site security and Other insurance companies cover: building: 1.0‰-1.25‰、office/commercial buildings (up to loss prevention Philippines between 0.15% and 0.3%. Deductibles vary from USD 2,500 to USD 5,000 for material damage, and time deductibles from · material damage for contract works, construction plant and five-storey): 1.2‰- 1.5‰、high-rise buildings (max of five · damage to surrounding property due to driven piles when

Philippines between two and seven days for small industries. The material damage deductible for a large risk equipment, specified construction machinery and clearance of basements) 1.2‰-1.5‰、 factories/warehouses (up to two-storey) construction involves basements may be as high as USD 500,000 to USD 1mn and in the case of a petrochemical plant it can be as debris 1.2‰- 1.8‰、 bridges (max three spans only) 0.25‰-1.5‰。 · flooding of construction and erection sites due to storms and high as USD 5mn to USD 10mn. Time deductibles on major risks can be as much as 60 days. · earthquake, volcanic eruption and tsunami together with storm, Deductibles for condominiums and office buildings are 2.5% of typhoons In the case of independent power plants where an operator's cover is arranged, deductibles range cyclone, flood and landslide; these perils bear separate limits of estimated contract value for major perils and 1.5% for others. For · earthquake damage from USD 50,000 (minimum) to USD 2.5mn. indemnity and deductibles that do not correspond to the other roads (excluding wet risks) deductibles start at PHP 1mn (USD · landslip and subsidence of road and bridge projects caused by construction/erection perils 19,657). flooding following typhoon · third party liability for bodily injury and property damage with limits Typical current EAR premium rates are as follows:power plants · loss and damage to machinery during testing and commissioning of liability that apply in respect of any one accident, or occurrence 1.3‰-2.5‰;water supply, purification, sewage treatment due to negligent operation or series of accidents or occurrences arising out of one event 1.25‰-2.00‰;garbage handling and treatment, incinerators, General exclusions consist of loss as a result of war, civil war, riot, remote heating installations 2.0‰-2.5‰;radio, television, Machinery breakdown is normally covered as an extension of an industrial all risks policy. Some When machinery breakdown and business interruption are covered as extensions to an IAR policy, strike and malicious damage together with nuclear radiation or telephone 1.2‰-2.0‰;building industry 1.2‰-2.0‰;pulp and insurers use the UK ABI wording as a base, but this is often extended by brokers. the additional rates charged are often minimal and sometimes the cover is included free of charge. radioactive contamination. Other exclusions embrace losses paper industry 2.0‰-2.5‰;printing and packing materials

Thailand Deductibles are often no more than THB 100,000 (USD 3,130) for material damage, with time consequent upon wilful acts of the insured or his or her industry 1.2‰- 2.5‰;textile industry 1.50‰-2.25‰。 deductibles for business interruption of between two and seven days for small industries. The representatives and cessation of work whether total or partial. Contract plant and equipment when insured with contract works material damage deductible for a large risk such as a power or petrochemical plant may be upwards generally carry the same premium rate as contract works. When of USD 5mn, and time deductibles can be as much as 60 days. insured in isolation cranes can attract a rate of between 1.25% and 3.00%.

Construction and erection insurance are written as separate A typical annual rate for a straightforward civil project would be The major hazards are flooding and, to a lesser extent, vibration classes, usually on the Munich Re or Swiss Re policy forms. between 0.03% and 0.10%, depending on the nature of the and weakening and removal of support. Subsidence and landslide Machinery breakdown may be covered as part of an industrial all risks insurance or other package Cover for textile machinery is available at 0.10% to 0.25%, subject to deductible of 5% of each and policy, attached by endorsement to a named perils policy or issued as a separate policy. Cover under every loss with a minimum of VND 2.08mn (USD 90.64).

Thailand Contractors' plant and machinery is insured either on a project exposure, with deductibles varying between THB 10,000 (USD 313) are also potential risks, particularly around Metropolitan Bangkok.

basis, or covered by an annual policy, depending on the activities and THB 50,000 (USD 1,565). A high-rise office construction over a Vietnam package policies is the most common, occasionally for full value but usually with a sub-limit of about The average rate for most types of machinery is 0.08%. of the contractors. two-year period would pay a rate of around 0.125% to 0.15% with a USD 500,000. Business interruption may be included as a separate section of the machinery The rate for the insurance of a steam boiler is 0.25% to 0.30%. deductible of THB 100,000 (USD 3,130). breakdown policy or, more usually, insured under a separate policy, but there is little or no demand for Lower rates are applied when the risks are included in a package policy, or no charge at all is made. the cover. Cover generally follows the standard Munich Re policy wording. Circular No 329/2016/TT-BC dated 16 December 2016 provided The major hazards for contract works are related to natural perils, in Computer equipment is covered under an electronic equipment policy which excludes damage Typical local insurance business in Vietnam includes: project guidelines in respect of premium schedules. particular typhoons and tropical storms: these can cause caused by earthquake, typhoon and loss by theft and failure of public supply but covers loss or damage occasioned by fire.

Vietnam works, contractor's plant and machinery, third party liability, delay in widespread flooding which, in turn, provokes landslip and start up, marine cargo. subsidence. The exposure is particularly severe in the centre of the The standard boiler and pressure vessel policy in use covers damage other than by fire caused by In the case of erection risks, Munich Re's standard policy country, and frequent losses are sustained to road projects from and solely due to explosion or collapse, including also third party cover. Exclusions include defects wording for contract works (machinery), translated into landslides and foundations being washed away. due to wear and tear, and failure of individual water tubes in boilers, locomotive or other Vietnamese, is used. multi-tubular types, in superheaters or in economisers. Standard CAR policy exclusions are: war and terrorism, radioactive Construction plant and machinery is insurable on a new, replacement value basis but if the values contamination and nuclear reaction, any act of default on the part of insured are less than the actual new replacement cost, average is applied. Standard exclusions the insured or their representatives, any partial or total cessation of include wear, tear and deterioration, mechanical and electrical breakdown, loss or damage resulting work exceeding four weeks which has not been notified to insurers. from immersion in tidal waters, loss in transit and loss or damage resulting from wilful acts or neglect. Contractors' plant and equipment may be insured under the same policy as the contract works but it is usual for a separate annual policy to be issued.

Special Report of Disaster and Risk in the Belt and Road Region 2019 07Suggestions to promote disaster risk governance in SEA 07Suggestions to promote disaster risk governance in SEA 47 Policy suggestions Policy suggestions 48

Deeply understand and Natural disasters in SEA are characterized by multiple, frequent, repeated occurrences and complexities. Build resilient production With the rise of globalization, some countries in Southeast Asia, such as Thailand and Vietnam, are becoming assess natural disaster Seismic-geological, hydrological-meteorological, and other types of multi-hazards and disaster-chains are and supply chains critical nodes in global production and the supply chain. The case of the floods in Thailand in 2011 has fully risks particularly important. Understanding the formation and evolution of natural disaster risks in Southeast demonstrated that the effects of local disasters can spread to other countries and regions through the complex Asia, especially the formation mechanism of multi-hazard and disaster chains, and the quantitative production and supply network, resulting in ripple effects in upper, middle, lower, and even inter-industry. assessment of natural disaster risks, are of great significance for risk-informed policy-making of local Incorporating resilience of production and supply chains to guard against disaster shocks and failures is not only governments and investment decision-making of enterprises. Suggestions include: key to keeping companies competitive and productive, but also an important part of building global trade and (1) Strengthen the research on the process and mechanism of disaster formation, especially the typical economic resilience. Suggestions include: multi-hazard disaster-chain and disaster compounds. (1) Understand the dynamic mechanism of disaster risk propagation and evolution in the production and supply (2) Carry out quantitative vulnerability and fragility assessment of typical exposed units. chains, and find the threshold for abrupt change in the disaster risk. (3) Develop disaster risk assessment models with special focus on targeting multi-hazard disaster chains (2) Identify critical nodes in the chain, such as high-risk industries and enterprises, and improve their and disaster compounds. disaster-resistant capability and post-disaster recovery capacity. (4) Develop automatic mapping and updating technology for integrated risk mapping for multiple (3) Strengthen the resilience of the supply chain and identify the most vulnerable links. Prioritize higher end-users and purposes. resilience and reduce the vulnerability of chains in combination with improving the resilience of transport infrastructures.

Effectively improve the Both the relationship between disaster losses and economic development level, or the lessons learned prevention capacity and from past large-scale disasters suggest that the prevention capacity of SEA is very low. It is quite easy to Establish a regional Risk transfer and sharing by insurance and reinsurance are important methods for reducing disaster risk. At reduce vulnerability see the fallacy in “small disasters but huge losses”. Increasing the prevention capacity and decreasing mechanism for transferring present, the penetration and density of property and liability insurance in Southeast Asia are relatively low, and vulnerability are the most traditional and effective ways to reduce disaster risks. They are also important and sharing disaster risks the role of insurance in catastrophe compensation is still very limited. Catastrophe has also had a greatly prerequisites before using any financial instruments for risk transfer. Therefore, special attention should be negative impact on the insurance market in some regions. Suggestions include: paid to increase the prevention capacity of various exposures in the future. Suggestions include: (1) Strive to improve the insurance penetration and density of the local society, develop disaster insurance (1) Develop risk-informed planning, and implement restricted entry to high-risk regions. products in a targeted manner, combine index insurance product innovation with poverty alleviation, and (2) Reinforce building codes, strengthen implementation, and effectively increase the ability of buildings boost the development of the liability insurance market with government financial subsidies. and infrastructures to withstand disasters via engineering. (2) Chinese enterprises investing in local construction should highly value the role of insurance, actively (3) Increase the government's disaster risk management capability, and increase the public’s risk purchase insurance, and take advantage of various risk transfer measures. awareness, self-rescue skills, and willingness for mutual assistance. (3) Establish a regional catastrophe risk-sharing mechanism to provide emergency response funds for member states, reduce indirect losses, and mitigate the medium- and long-term impact on macroeconomic development. (4) Chinese insurance and reinsurance enterprises should, under the overall initiative of the Belt and Road, play Establish a regional The large-scale disasters that have occurred in SEA have revealed shortcomings in disaster monitoring, a greater role in the establishment of risk transfer and sharing mechanisms in local markets, especially in experience sharing, technical assistance, financial donations, personnel training, and other aspects. integrated risk and early-warning and decision-supporting systems. Improvements in the monitoring and early-warning information platform levels for major natural disasters in SEA are urgently needed, especially for disaster chains such as tropical cyclone-storm surge-flood and earthquake-tsunami. Suggestions include: (1) Develop a regional coordinated disaster monitoring and early-warning system based on existing The characteristics of disaster risks in SEA determine the necessity of interregional communication, national monitoring networks and connect to global disaster monitoring and early-warning platforms. Establish a regional coordination, and cooperation. Regional consensus should be promoted from the perspective of a community (2) Develop natural disaster loss estimation and rapid assessment techniques to meet the demands of disaster risk governance with a shared future for mankind, and the common security of all countries in the region should be emphasized pre-disaster, during-disaster, and post-disaster rapid loss assessment, to support resource allocation coordination mechanism when promoting social, economic, and cultural connectivity in the region. Suggestions include: and emergency decisions. (3) Strengthen the regional integration linkage and information sharing, especially in countries and regions (1) Build a multi-level and multi-subject coordination mechanism, incorporate as many stakeholders as within the affected area of an earthquake, along a typhoon path, or upstream and downstream along a possible, set up corresponding regional organizations, and promote pragmatic cooperation among river basin. countries, organizations, and groups. (2) Build a multi-dimensional coordination mechanism that will effectively participate in regional disaster monitoring, risk warning, information communication, and decision support, and will bridge the long-standing and obvious constraints between countries and stakeholders in the existing mechanism, so as to effectively enhance the cohesion of the region for better risk governance. Improve the resilience Infrastructure construction is one of high priorities of the "Belt and Road" initiative, and it is also the key to of critical infrastructures improve regional connectivity. Infrastructures in SEA, including transportation, communication, and energy, cross diverse geomorphic and climatic regions. Frequently occurring natural hazards along the route pose a significant risk to investment and safe construction and operation of infrastructure projects. Suggestions include:

(1) Carry out environmental investigation and risk assessment of infrastructures, identify sections with high disaster risk, and improve infrastructure planning by systematically including risk information. Take into full consideration the various types of hazards that may affect the safety of infrastructure, as (2) well as the coupling effects of multi-hazards. Upgrade the design standards for hazards, and develop technologies for securing infrastructure safety. Establish real-time monitoring and warning systems based on information from multiple sources such (3) as stress and deformation, and build a coordinated and interconnected intelligent emergency management platform.

Special Report of Disaster and Risk in the Belt and Road Region 2019 47 Policy suggestions Policy suggestions 48

Deeply understand and Natural disasters in SEA are characterized by multiple, frequent, repeated occurrences and complexities. Build resilient production With the rise of globalization, some countries in Southeast Asia, such as Thailand and Vietnam, are becoming assess natural disaster Seismic-geological, hydrological-meteorological, and other types of multi-hazards and disaster-chains are and supply chains critical nodes in global production and the supply chain. The case of the floods in Thailand in 2011 has fully risks particularly important. Understanding the formation and evolution of natural disaster risks in Southeast demonstrated that the effects of local disasters can spread to other countries and regions through the complex Asia, especially the formation mechanism of multi-hazard and disaster chains, and the quantitative production and supply network, resulting in ripple effects in upper, middle, lower, and even inter-industry. assessment of natural disaster risks, are of great significance for risk-informed policy-making of local Incorporating resilience of production and supply chains to guard against disaster shocks and failures is not only governments and investment decision-making of enterprises. Suggestions include: key to keeping companies competitive and productive, but also an important part of building global trade and (1) Strengthen the research on the process and mechanism of disaster formation, especially the typical economic resilience. Suggestions include: multi-hazard disaster-chain and disaster compounds. (1) Understand the dynamic mechanism of disaster risk propagation and evolution in the production and supply (2) Carry out quantitative vulnerability and fragility assessment of typical exposed units. chains, and find the threshold for abrupt change in the disaster risk. (3) Develop disaster risk assessment models with special focus on targeting multi-hazard disaster chains (2) Identify critical nodes in the chain, such as high-risk industries and enterprises, and improve their and disaster compounds. disaster-resistant capability and post-disaster recovery capacity. (4) Develop automatic mapping and updating technology for integrated risk mapping for multiple (3) Strengthen the resilience of the supply chain and identify the most vulnerable links. Prioritize higher end-users and purposes. resilience and reduce the vulnerability of chains in combination with improving the resilience of transport infrastructures.

Effectively improve the Both the relationship between disaster losses and economic development level, or the lessons learned prevention capacity and from past large-scale disasters suggest that the prevention capacity of SEA is very low. It is quite easy to Establish a regional Risk transfer and sharing by insurance and reinsurance are important methods for reducing disaster risk. At reduce vulnerability see the fallacy in “small disasters but huge losses”. Increasing the prevention capacity and decreasing mechanism for transferring present, the penetration and density of property and liability insurance in Southeast Asia are relatively low, and vulnerability are the most traditional and effective ways to reduce disaster risks. They are also important and sharing disaster risks the role of insurance in catastrophe compensation is still very limited. Catastrophe has also had a greatly prerequisites before using any financial instruments for risk transfer. Therefore, special attention should be negative impact on the insurance market in some regions. Suggestions include: paid to increase the prevention capacity of various exposures in the future. Suggestions include: (1) Strive to improve the insurance penetration and density of the local society, develop disaster insurance (1) Develop risk-informed planning, and implement restricted entry to high-risk regions. products in a targeted manner, combine index insurance product innovation with poverty alleviation, and (2) Reinforce building codes, strengthen implementation, and effectively increase the ability of buildings boost the development of the liability insurance market with government financial subsidies. and infrastructures to withstand disasters via engineering. (2) Chinese enterprises investing in local construction should highly value the role of insurance, actively (3) Increase the government's disaster risk management capability, and increase the public’s risk purchase insurance, and take advantage of various risk transfer measures. awareness, self-rescue skills, and willingness for mutual assistance. (3) Establish a regional catastrophe risk-sharing mechanism to provide emergency response funds for member states, reduce indirect losses, and mitigate the medium- and long-term impact on macroeconomic development. (4) Chinese insurance and reinsurance enterprises should, under the overall initiative of the Belt and Road, play Establish a regional The large-scale disasters that have occurred in SEA have revealed shortcomings in disaster monitoring, a greater role in the establishment of risk transfer and sharing mechanisms in local markets, especially in experience sharing, technical assistance, financial donations, personnel training, and other aspects. integrated risk and early-warning and decision-supporting systems. Improvements in the monitoring and early-warning information platform levels for major natural disasters in SEA are urgently needed, especially for disaster chains such as tropical cyclone-storm surge-flood and earthquake-tsunami. Suggestions include: (1) Develop a regional coordinated disaster monitoring and early-warning system based on existing The characteristics of disaster risks in SEA determine the necessity of interregional communication, national monitoring networks and connect to global disaster monitoring and early-warning platforms. Establish a regional coordination, and cooperation. Regional consensus should be promoted from the perspective of a community (2) Develop natural disaster loss estimation and rapid assessment techniques to meet the demands of disaster risk governance with a shared future for mankind, and the common security of all countries in the region should be emphasized pre-disaster, during-disaster, and post-disaster rapid loss assessment, to support resource allocation coordination mechanism when promoting social, economic, and cultural connectivity in the region. Suggestions include: and emergency decisions. (3) Strengthen the regional integration linkage and information sharing, especially in countries and regions (1) Build a multi-level and multi-subject coordination mechanism, incorporate as many stakeholders as within the affected area of an earthquake, along a typhoon path, or upstream and downstream along a possible, set up corresponding regional organizations, and promote pragmatic cooperation among river basin. countries, organizations, and groups. (2) Build a multi-dimensional coordination mechanism that will effectively participate in regional disaster monitoring, risk warning, information communication, and decision support, and will bridge the long-standing and obvious constraints between countries and stakeholders in the existing mechanism, so as to effectively enhance the cohesion of the region for better risk governance. Improve the resilience Infrastructure construction is one of high priorities of the "Belt and Road" initiative, and it is also the key to of critical infrastructures improve regional connectivity. Infrastructures in SEA, including transportation, communication, and energy, cross diverse geomorphic and climatic regions. Frequently occurring natural hazards along the route pose a significant risk to investment and safe construction and operation of infrastructure projects. Suggestions include:

(1) Carry out environmental investigation and risk assessment of infrastructures, identify sections with high disaster risk, and improve infrastructure planning by systematically including risk information. Take into full consideration the various types of hazards that may affect the safety of infrastructure, as (2) well as the coupling effects of multi-hazards. Upgrade the design standards for hazards, and develop technologies for securing infrastructure safety. Establish real-time monitoring and warning systems based on information from multiple sources such (3) as stress and deformation, and build a coordinated and interconnected intelligent emergency management platform.

Special Report of Disaster and Risk in the Belt and Road Region 2019 Data Appendix 50

NAME Description Time and Spatial Data source its resolution resolution

Digital Elevation Elevation —— 1 km National Oceanic and Atmospheric Administration Model https://www.ngdc.noaa.gov/mgg/topo/DATATILES/elev/all10g.zip

Population Population density 2015 1 km×1 km Columbia University https://sedac.ciesin.columbia.edu/

GDP GDP (Purchasing 2015 30'×30' Kummu et al. 2019 Power Parity, PPP) https://doi.org/10.1038/sdata.2018.4

The loss in Time, location, 1980-2018 Country Centre for Research on the Epidemiology of Disasters (CRED) natural disasters death, loss, etc. https://emdat.be of natural disasters Appendix Typhoon track Historical typhoon 1979-2019 —— National Oceanic and Atmospheric Administration 08 track in Northwest https://www.ncdc.noaa.gov/ibtracs/index.php?name=ib-v4-access Pacific and Indian Ocean

PGA Peak ground —— 2.8'×2.7' Global Earthquake Model Foundation acceleration with https://www.globalquakemodel.org/gem return period of 475a

Volcano Volcanic location, 1900-2018 —— Smithsonian Institution affected population, http://www.volcano.si.edu death, etc.

Infrastructure Roads, railways, 2010-2018 —— News reports ports, airports and other infrastructure which China is participated in.

Climate change Temperature and 1985-2005, 0.25°×0.25° National Oceanic and Atmospheric Administration projections precipitation 2006-2100 https://dataserver.nccs.nasa.gov/thredds/catalog/bypass/NEX-GDDP/catalog.html

Projected flood Flood submerged 1985-2005, 2.5'×2.5' Lim, et al. 2018. inundation depth and 2016-2035, https://doi.org/10.1002/2017EF000671. proportion 2046-2065

Projected Population 1985-2005, 0.5°×0.5° The Inter-Sectoral Impact Model Intercomparison Project population and GDP 2006-2100 http://clima-dods.ictp.it/Users/fcolon_g/ISI-MIP/ GDP data National Institute for Environmental Studies, Japan http://www.cger.nies.go.jp/gcp/population-and-gdp.html

Insurance data National historical 2008-2017 Country Sigma report from Swiss Re (2008-2018) insurance data https://www.swissre.com/ and disaster Natural catastrophes 2017 from Munich Re indemnity data https://www.munichre.com/en/group/index.html

Insurance lines Major insurance 2017 Country Axco Insurance Information Service Ltd. in SEA product lines in https://www.axcoinfo.com/ countries SEA countries Data Appendix 50

NAME Description Time and Spatial Data source its resolution resolution

Digital Elevation Elevation —— 1 km National Oceanic and Atmospheric Administration Model https://www.ngdc.noaa.gov/mgg/topo/DATATILES/elev/all10g.zip

Population Population density 2015 1 km×1 km Columbia University https://sedac.ciesin.columbia.edu/

GDP GDP (Purchasing 2015 30'×30' Kummu et al. 2019 Power Parity, PPP) https://doi.org/10.1038/sdata.2018.4

The loss in Time, location, 1980-2018 Country Centre for Research on the Epidemiology of Disasters (CRED) natural disasters death, loss, etc. https://emdat.be of natural disasters Appendix Typhoon track Historical typhoon 1979-2019 —— National Oceanic and Atmospheric Administration 08 track in Northwest https://www.ncdc.noaa.gov/ibtracs/index.php?name=ib-v4-access Pacific and Indian Ocean

PGA Peak ground —— 2.8'×2.7' Global Earthquake Model Foundation acceleration with https://www.globalquakemodel.org/gem return period of 475a

Volcano Volcanic location, 1900-2018 —— Smithsonian Institution affected population, http://www.volcano.si.edu death, etc.

Infrastructure Roads, railways, 2010-2018 —— News reports ports, airports and other infrastructure which China is participated in.

Climate change Temperature and 1985-2005, 0.25°×0.25° National Oceanic and Atmospheric Administration projections precipitation 2006-2100 https://dataserver.nccs.nasa.gov/thredds/catalog/bypass/NEX-GDDP/catalog.html

Projected flood Flood submerged 1985-2005, 2.5'×2.5' Lim, et al. 2018. inundation depth and 2016-2035, https://doi.org/10.1002/2017EF000671. proportion 2046-2065

Projected Population 1985-2005, 0.5°×0.5° The Inter-Sectoral Impact Model Intercomparison Project population and GDP 2006-2100 http://clima-dods.ictp.it/Users/fcolon_g/ISI-MIP/ GDP data National Institute for Environmental Studies, Japan http://www.cger.nies.go.jp/gcp/population-and-gdp.html

Insurance data National historical 2008-2017 Country Sigma report from Swiss Re (2008-2018) insurance data https://www.swissre.com/ and disaster Natural catastrophes 2017 from Munich Re indemnity data https://www.munichre.com/en/group/index.html

Insurance lines Major insurance 2017 Country Axco Insurance Information Service Ltd. in SEA product lines in https://www.axcoinfo.com/ countries SEA countries 51 Technical Appendix References 52

Climate extremes Rainstom/Flood exposure and risk assessment ● Aon Benfield. 2012. 2011 Thailand Floods Event Recap Report. ● Gosling, S. N., McGregor, G. R. and Páldy, A.: Climate change and Impact Forecasting LLC, Aon Benfield: Chicago, IL. heat-related mortality in six cities Part 1: Model construction and Extreme-temperature days Flood mortality risk assessment employs the classic risk-vulnerability-exposure validation, Int. J. Biometeorol., doi:10.1007/s00484-007-0092-9, Extreme-temperature days in this report refer to the number of days in which the conceptual framework (Kinoshita et al. 2018). Using the projected flood ● Aon Benfield. 2015. 2004 Indian Ocean Tsunami: 10 Years On 2007. maximum daily temperature is greater than the 95th percentile value. inundation data (Lim et al. 2018), combined with projected population and GDP According to Bonsal et al. (2001), the equation for calculating the 95th data from SSPs, and a vulnerability function, the annual average mortality and ● Bengtsson, L., Hodges, K. I., Esch, M., Keenlyside, N., Kornblueh, ● Government of the Union of Myanmar, ASEAN and UN. 2008. percentile value is: loss under different scenarios were calculated. The RCP4.5-SSP2 combination L., Luo, J.-J. J. and Yamagata, T.: How may tropical cyclones Post-Nargis Joint Assessment. was used in this report. The relationship between flood depth and deaths is (1) change in a warmer climate?, Tellus, Ser. A Dyn. Meteorol. based on the results of Koshimura et al. (2009). The relationship between flood Oceanogr., 59(4), 539–561, doi:10.1111/j.1600-0870.2007.00251.x, ● Hallegatte, S., Green, C., Nicholls, R. J. and Corfee-Morlot, J.: where m denotes the rank order, and N denotes the total amount of samples. depth and loss is based on the research results of Wing et al. (2018). 2007. Future flood losses in major coastal cities, Nat. Clim. Chang., 3(9), We used three models from the NEX-GDDP data set for computation, 802–806, doi:10.1038/nclimate1979, 2013. MIROC-ESM-CHEM, CanESM2, and CESM1-BGC. For each individual model, ● Bhatia, K. T., Vecchi, G. A., Knutson, T. R., Murakami, H., Kossin, J., the 95th percentile value of high temperature is 20-year averages over each Dixon, K. W. and Whitlock, C. E.: Recent increases in tropical ● Hoegh-Guldberg, O.D. Jacob, M. Taylor, M. Bindi, S. B.: Impacts of period, including historical period, the 2030s, and the 2050s. The results cyclone intensification rates, Nat. Commun., 10(1), 635, 1.5°C of Global Warming on Natural and Human Systems., 2018. presented in the report are from the multi-model ensemble (MME), which is the Infrastructure exposure doi:10.1038/s41467-019-08471-z, 2019. average of the above three models. ● Holden, W. N. and Marshall, S. J.: Chapter 24 - Climate Change and The analysis of infrastructure exposure in this report is mainly based on the ● Bonsal, B. R., Zhang, X., Vincent, L. A. and Hogg, W. D.: Typhoons in the Philippines: Extreme Weather Events in the Rainfall from rainstorms spatial overlay of hazard (earthquake, flood, and typhoon) and infrastructure Characteristics of Daily and Extreme Temperatures over Canada, J. Anthropocene, edited by P. Samui, D. Kim, and C. B. T.-I. D. S. and Extreme precipitation in this report refers to the number of days which the (highway, railway, airport, port and bridge). Clim., 14(9), 1959–1976, doi:10.1175/1520-0442 M. Ghosh, pp. 407–421, Elsevier., 2018. maximum daily precipitation is greater than the 95th percentile value, and only (2001)014<1959:CODAET>2.0.CO;2, 2001. the data with daily precipitation larger than 1.0 mm is considered in the ● Kinoshita, Y., Tanoue, M., Watanabe, S. and Hirabayashi, Y.: calculation. Accumulate the precipitation of all extreme precipitation days to ● Chadwick, R., Good, P., Martin, G. and Rowell, D. P.: Large rainfall Quantifying the effect of autonomous adaptation to global river flood obtain the annual rainfall from rainstorms. changes consistently projected over substantial areas of tropical projections: application to future flood risk assessments, Environ. The dataset, scenario and model selection of the precipitation data are the land, Nat. Clim. Chang., 6, 177, 2015. Res. Lett., 13(1), 014006, doi:10.1088/1748-9326/aa9401, 2018. same as the temperature data. The 95th percentile value, rainfall from rainstorms for each period and the multi-model’s value are also calculated in ● Chongvilaivan, A.: Thailand’s 2011 flooding: Its impact on direct ● Kjellstrom, T.: Impact of Climate Conditions on Occupational Health the same way as the heat wave days. exports and global supply chains., 2012. and Related Economic Losses: A New Feature of Global and Urban Health in the Context of Climate Change, Asia Pacific J. Public ● Chotamonsak, C., Salathé, E., Kreasuwan, J., Chantara, S. and Heal., 28(2_suppl), 28S-37S, doi:10.1177/1010539514568711, Siriwitayakorn, K.: Projected climate change over Southeast Asia 2015. simulated using a WRF regional climate model., 2011. Population exposure and risk of heat waves ● Knutson, T. R., McBride, J. L., Chan, J., Emanuel, K., Holland, G., ● Chou, C., Neelin, J. D., Chen, C.-A. and Tu, J.-Y.: Evaluating the Landsea, C., Held, I., Kossin, J. P., Srivastava, A. K. and Sugi, M.: Heat wave in this report is defined as the weather process with the maximum “Rich-Get-Richer” Mechanism in Tropical Precipitation Change Tropical cyclones and climate change, Nat. Geosci., 3, 157, 2010. daily temperature of at least three consecutive days exceeding the 95% under Global Warming, J. Clim., 22(8), 1982–2005, percentile value. The equation for calculating the 95th percentile value can be doi:10.1175/2008JCLI2471.1, 2009. ● Koshimura, S., Yanagisawa, H. and Imamura, F.: Developing fragility referred to Equation (1). Population exposure to heat waves is defined as the functions for tsunami damage estimation using numerical model and number of people exposed to heat waves, which is obtained by multiplying the ● Commission Mekong River: MRC (2011) Flood Situation Report, post-tsunami data from Banda Aceh, Indonesia., 2009. number of heat wave days with its corresponding population: November 2011., 2011. ● Kummu, M., Taka, M. and Guillaume, J. H. A.: Gridded global (2) ● Dinh, Q., Balica, S., Popescu, I. and Jonoski, A.: Climate change datasets for Gross Domestic Product and Human Development where E denotes the population exposure (person·day); D denotes the number impact on flood hazard, vulnerability and risk of the Long Xuyen Index over 1990-2015, Sci. Data, doi:10.1038/sdata.2018.4, 2018. of average annual heat wave days in MIROC-ESM-CHEM under the RCP4.5 Quadrangle in the Mekong Delta, Int. J. River Basin Manag., 10(1), scenario, unit: day; and P denotes the population under the shared 103–120, doi:10.1080/15715124.2012.663383, 2012. ● Lacombe, G., Hoanh, C. T. and Smakhtin, V.: Multi-year variability or socioeconomic pathways (SSP2) scenario, unit: person. unidirectional trends? Mapping long-term precipitation and The mortality risk of heat waves was calculated following: ● Emanuel, K., Sundararajan, R. and Williams, J.: Hurricanes and temperature changes in continental Southeast Asia using PRECIS Global Warming: Results from Downscaling IPCC AR4 Simulations, regional climate model, Clim. Change, 113(2), 285–299, R=F×D×P (3) Bull. Am. Meteorol. Soc., 89(3), 347–368, doi:10.1007/s10584-011-0359-3, 2012. where R denotes the mortality risk of heat waves, F denotes the vulnerability doi:10.1175/BAMS-89-3-347, 2008. function associated with the maximum daily temperature, P denotes the ● Lauri, H., de Moel, H., Ward, P. J., Räsänen, T. A., Keskinen, M. and population, and D denotes the heat wave days. The vulnerability function F ● Gale, E. L. and Saunders, M. A.: The 2011 Thailand flood: climate Kummu, M.: Future changes in Mekong River hydrology: impact of mainly refers to the research of Gosling et al. (2007). causes and return periods., Weather, 68, 233–237, climate change and reservoir operation on discharge, Hydrol. Earth doi:10.1002/wea.2133, 2013. Syst. Sci., 16(12), 4603–4619, doi:10.5194/hess-16-4603-2012, 2012.

Special Report of Disaster and Risk in the Belt and Road Region 2019 51 Technical Appendix References 52

Climate extremes Rainstom/Flood exposure and risk assessment ● Aon Benfield. 2012. 2011 Thailand Floods Event Recap Report. ● Gosling, S. N., McGregor, G. R. and Páldy, A.: Climate change and Impact Forecasting LLC, Aon Benfield: Chicago, IL. heat-related mortality in six cities Part 1: Model construction and Extreme-temperature days Flood mortality risk assessment employs the classic risk-vulnerability-exposure validation, Int. J. Biometeorol., doi:10.1007/s00484-007-0092-9, Extreme-temperature days in this report refer to the number of days in which the conceptual framework (Kinoshita et al. 2018). Using the projected flood ● Aon Benfield. 2015. 2004 Indian Ocean Tsunami: 10 Years On 2007. maximum daily temperature is greater than the 95th percentile value. inundation data (Lim et al. 2018), combined with projected population and GDP According to Bonsal et al. (2001), the equation for calculating the 95th data from SSPs, and a vulnerability function, the annual average mortality and ● Bengtsson, L., Hodges, K. I., Esch, M., Keenlyside, N., Kornblueh, ● Government of the Union of Myanmar, ASEAN and UN. 2008. percentile value is: loss under different scenarios were calculated. The RCP4.5-SSP2 combination L., Luo, J.-J. J. and Yamagata, T.: How may tropical cyclones Post-Nargis Joint Assessment. was used in this report. The relationship between flood depth and deaths is (1) change in a warmer climate?, Tellus, Ser. A Dyn. Meteorol. based on the results of Koshimura et al. (2009). The relationship between flood Oceanogr., 59(4), 539–561, doi:10.1111/j.1600-0870.2007.00251.x, ● Hallegatte, S., Green, C., Nicholls, R. J. and Corfee-Morlot, J.: where m denotes the rank order, and N denotes the total amount of samples. depth and loss is based on the research results of Wing et al. (2018). 2007. Future flood losses in major coastal cities, Nat. Clim. Chang., 3(9), We used three models from the NEX-GDDP data set for computation, 802–806, doi:10.1038/nclimate1979, 2013. MIROC-ESM-CHEM, CanESM2, and CESM1-BGC. For each individual model, ● Bhatia, K. T., Vecchi, G. A., Knutson, T. R., Murakami, H., Kossin, J., the 95th percentile value of high temperature is 20-year averages over each Dixon, K. W. and Whitlock, C. E.: Recent increases in tropical ● Hoegh-Guldberg, O.D. Jacob, M. Taylor, M. Bindi, S. B.: Impacts of period, including historical period, the 2030s, and the 2050s. The results cyclone intensification rates, Nat. Commun., 10(1), 635, 1.5°C of Global Warming on Natural and Human Systems., 2018. presented in the report are from the multi-model ensemble (MME), which is the Infrastructure exposure doi:10.1038/s41467-019-08471-z, 2019. average of the above three models. ● Holden, W. N. and Marshall, S. J.: Chapter 24 - Climate Change and The analysis of infrastructure exposure in this report is mainly based on the ● Bonsal, B. R., Zhang, X., Vincent, L. A. and Hogg, W. D.: Typhoons in the Philippines: Extreme Weather Events in the Rainfall from rainstorms spatial overlay of hazard (earthquake, flood, and typhoon) and infrastructure Characteristics of Daily and Extreme Temperatures over Canada, J. Anthropocene, edited by P. Samui, D. Kim, and C. B. T.-I. D. S. and Extreme precipitation in this report refers to the number of days which the (highway, railway, airport, port and bridge). Clim., 14(9), 1959–1976, doi:10.1175/1520-0442 M. Ghosh, pp. 407–421, Elsevier., 2018. maximum daily precipitation is greater than the 95th percentile value, and only (2001)014<1959:CODAET>2.0.CO;2, 2001. the data with daily precipitation larger than 1.0 mm is considered in the ● Kinoshita, Y., Tanoue, M., Watanabe, S. and Hirabayashi, Y.: calculation. Accumulate the precipitation of all extreme precipitation days to ● Chadwick, R., Good, P., Martin, G. and Rowell, D. P.: Large rainfall Quantifying the effect of autonomous adaptation to global river flood obtain the annual rainfall from rainstorms. changes consistently projected over substantial areas of tropical projections: application to future flood risk assessments, Environ. The dataset, scenario and model selection of the precipitation data are the land, Nat. Clim. Chang., 6, 177, 2015. Res. Lett., 13(1), 014006, doi:10.1088/1748-9326/aa9401, 2018. same as the temperature data. The 95th percentile value, rainfall from rainstorms for each period and the multi-model’s value are also calculated in ● Chongvilaivan, A.: Thailand’s 2011 flooding: Its impact on direct ● Kjellstrom, T.: Impact of Climate Conditions on Occupational Health the same way as the heat wave days. exports and global supply chains., 2012. and Related Economic Losses: A New Feature of Global and Urban Health in the Context of Climate Change, Asia Pacific J. Public ● Chotamonsak, C., Salathé, E., Kreasuwan, J., Chantara, S. and Heal., 28(2_suppl), 28S-37S, doi:10.1177/1010539514568711, Siriwitayakorn, K.: Projected climate change over Southeast Asia 2015. simulated using a WRF regional climate model., 2011. Population exposure and risk of heat waves ● Knutson, T. R., McBride, J. L., Chan, J., Emanuel, K., Holland, G., ● Chou, C., Neelin, J. D., Chen, C.-A. and Tu, J.-Y.: Evaluating the Landsea, C., Held, I., Kossin, J. P., Srivastava, A. K. and Sugi, M.: Heat wave in this report is defined as the weather process with the maximum “Rich-Get-Richer” Mechanism in Tropical Precipitation Change Tropical cyclones and climate change, Nat. Geosci., 3, 157, 2010. daily temperature of at least three consecutive days exceeding the 95% under Global Warming, J. Clim., 22(8), 1982–2005, percentile value. The equation for calculating the 95th percentile value can be doi:10.1175/2008JCLI2471.1, 2009. ● Koshimura, S., Yanagisawa, H. and Imamura, F.: Developing fragility referred to Equation (1). Population exposure to heat waves is defined as the functions for tsunami damage estimation using numerical model and number of people exposed to heat waves, which is obtained by multiplying the ● Commission Mekong River: MRC (2011) Flood Situation Report, post-tsunami data from Banda Aceh, Indonesia., 2009. number of heat wave days with its corresponding population: November 2011., 2011. ● Kummu, M., Taka, M. and Guillaume, J. H. A.: Gridded global (2) ● Dinh, Q., Balica, S., Popescu, I. and Jonoski, A.: Climate change datasets for Gross Domestic Product and Human Development where E denotes the population exposure (person·day); D denotes the number impact on flood hazard, vulnerability and risk of the Long Xuyen Index over 1990-2015, Sci. Data, doi:10.1038/sdata.2018.4, 2018. of average annual heat wave days in MIROC-ESM-CHEM under the RCP4.5 Quadrangle in the Mekong Delta, Int. J. River Basin Manag., 10(1), scenario, unit: day; and P denotes the population under the shared 103–120, doi:10.1080/15715124.2012.663383, 2012. ● Lacombe, G., Hoanh, C. T. and Smakhtin, V.: Multi-year variability or socioeconomic pathways (SSP2) scenario, unit: person. unidirectional trends? Mapping long-term precipitation and The mortality risk of heat waves was calculated following: ● Emanuel, K., Sundararajan, R. and Williams, J.: Hurricanes and temperature changes in continental Southeast Asia using PRECIS Global Warming: Results from Downscaling IPCC AR4 Simulations, regional climate model, Clim. Change, 113(2), 285–299, R=F×D×P (3) Bull. Am. Meteorol. Soc., 89(3), 347–368, doi:10.1007/s10584-011-0359-3, 2012. where R denotes the mortality risk of heat waves, F denotes the vulnerability doi:10.1175/BAMS-89-3-347, 2008. function associated with the maximum daily temperature, P denotes the ● Lauri, H., de Moel, H., Ward, P. J., Räsänen, T. A., Keskinen, M. and population, and D denotes the heat wave days. The vulnerability function F ● Gale, E. L. and Saunders, M. A.: The 2011 Thailand flood: climate Kummu, M.: Future changes in Mekong River hydrology: impact of mainly refers to the research of Gosling et al. (2007). causes and return periods., Weather, 68, 233–237, climate change and reservoir operation on discharge, Hydrol. Earth doi:10.1002/wea.2133, 2013. Syst. Sci., 16(12), 4603–4619, doi:10.5194/hess-16-4603-2012, 2012.

Special Report of Disaster and Risk in the Belt and Road Region 2019 53 References

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● Metcalfe, I.: ASIA | South-East, in Encyclopedia of Geology, edited ● Tan, M. L., Ibrahim, A. L., Yusop, Z., Chua, V. P. and Chan, N. W.: by Richard C. Selley, L. Cocks, M. Robin, and I. R. Plimer, pp. Climate change impacts under CMIP5 RCP scenarios on water 169–196, Elsevier., 2005. resources of the Kelantan River Basin, Malaysia, Atmos. Res., 189, 1–10, doi:https://doi.org/10.1016/j.atmosres.2017.01.008, 2017. ● Mora, C., Dousset, B., Caldwell, I. R., Powell, F. E., Geronimo, R. C., Bielecki, C. R., Counsell, C. W. W., Dietrich, B. S., Johnston, E. T., ● Taylor, K. E., Stouffer, R. J. and Meehl, G. A.: An Overview of CMIP5 Louis, L. V, Lucas, M. P., McKenzie, M. M., Shea, A. G., Tseng, H., and the Experiment Design, Bull. Am. Meteorol. Soc., 93(4), Giambelluca, T. W., Leon, L. R., Hawkins, E. and Trauernicht, C.: 485–498, doi:10.1175/BAMS-D-11-00094.1, 2011. Global risk of deadly heat, Nat. Clim. Chang., 7, 501, 2017. ● Thai Meteorological Department.: No Title, Mean Mon. rainfall ● Oouchi, K., Yoshimura, J., Yoshimura, H., Mizuta, R., Kusunoki, S. Thailand., 2012. and Noda, A.: Tropical Cyclone Climatology in a Global-Warming Climate as Simulated in a 20 km-Mesh Global Atmospheric Model: ● Thrasher, B., Maurer, E. P., McKellar, C. and Duffy, P. B.: Technical Frequency and Wind Intensity Analyses, J. Meteorol. Soc. Japan. Note: Bias correcting climate model simulated daily temperature Ser. II, 84(2), 259–276, doi:10.2151/jmsj.84.259, 2006. extremes with quantile mapping, Hydrol. Earth Syst. Sci., doi:10.5194/hess-16-3309-2012, 2012. ● Patricola, C. M. and Wehner, M. F.: Anthropogenic influences on major tropical cyclone events, Nature, 563(7731), 339–346, ● United Nations Office for Disaster Risk Rduction: Terminology, 2017. doi:10.1038/s41586-018-0673-2, 2018. ● Wing, O. E. J., Bates, P. D., Smith, A. M., Sampson, C. C., Johnson, ● Perkins, S. E., Alexander, L. V and Nairn, J. R.: Increasing K. A., Fargione, J. and Morefield, P.: Estimates of present and future frequency, intensity and duration of observed global heatwaves and flood risk in the conterminous United States, Environ. Res. Lett., 13 warm spells, Geophys. Res. Lett., 39(20), (3), 034023, doi:10.1088/1748-9326/AAAC65, 2018. doi:10.1029/2012GL053361, 2012. ● Winsemius, H. C., Aerts, J. C. J. H., van Beek, L. P. H., Bierkens, M. ● Poapongsakorn, N. and Meethom, P.: Impact of the 2011 Floods, F. P., Bouwman, A., Jongman, B., Kwadijk, J. C. J., Ligtvoet, W., and Flood Management in Thailand, Econ. Welf. Impacts Disasters Lucas, P. L., van Vuuren, D. P. and Ward, P. J.: Global drivers of East Asia Policy Responses., 247–310, 2011. future river flood risk, Nat. Clim. Chang., 6, 381, 2015.

● Richard C. Selley, L. Robin M. Cocks, Ian R. Plimer (eds.) ● World Bank: Thai Flood 2011. Rapid Assessment for Resilient Encyclopedia of Geology. Chapter: Asia South-East. Elsevier, 2005, Recovery and Reconstruction Planning., 2012. pp.169-198.

● Risk Management Solutions.2006. Managing Tsunami Risk in the Aftermath of the 2004 Indian Ocean Earthquake & Tsunami 53 References

● Liao, X., Xu, W., Zhang, J., Li, Y. and Tian, Y.: Global exposure to ● Shi, P. and Kasperson, R. E.: World Atlas of Natural Disaster Risk, rainstorms and the contribution rates of climate change and Beijing Normal University Press and Springer, Beijing., 2015. population change, Sci. Total Environ., 663, 644–653, doi:10.1016/J.SCITOTENV.2019.01.290, 2019. ● Shrestha, S. and Lohpaisankrit, W.: Flood hazard assessment under climate change scenarios in the Yang River Basin, Thailand, Int. J. ● Lim, Wee Ho, Dai Yamazaki, et al. 2018. Long-Term Changes in Sustain. Built Environ., 6(2), 285–298, Global Socioeconomic Benefits of Flood Defenses and Residual doi:https://doi.org/10.1016/j.ijsbe.2016.09.006, 2017. Risk Based on CMIP5 Climate Models. Earth’s Future 6 (7): 938–54. https://doi.org/10.1002/2017EF000671. ● Swiss Re. 2012. Natural Catastrophes and Man-Made Disasters in 2011. Sigma, No. 2. ● Liu, Z., Anderson, B., Yan, K., Dong, W., Liao, H. and Shi, P.: Global and regional changes in exposure to extreme heat and the relative ● Swiss Re. 2012. World insurance in 2017: solid, but mature life contributions of climate and population change, Sci. Rep., 7(August markets weigh on growth. Sigma, No. 3. 2016), 43909, doi:10.1038/srep43909, 2017. ● Tan, M. L., Ficklin, D. L., Ibrahim, A. L. and Yusop, Z.: Impacts and ● Mandapaka, P. V and Lo, E. Y. M.: Assessment of future changes in uncertainties of climate change on streamflow of the Johor River Southeast Asian precipitation using the NASA Earth Exchange Basin, Malaysia using a CMIP5 General Circulation Model Global Daily Downscaled Projections data set, Int. J. Climatol., 38 ensemble, J. Water Clim. Chang., 5(4), 676–695, (14), 5231–5244, doi:10.1002/joc.5724, 2018. doi:10.2166/wcc.2014.020, 2014.

● Metcalfe, I.: ASIA | South-East, in Encyclopedia of Geology, edited ● Tan, M. L., Ibrahim, A. L., Yusop, Z., Chua, V. P. and Chan, N. W.: by Richard C. Selley, L. Cocks, M. Robin, and I. R. Plimer, pp. Climate change impacts under CMIP5 RCP scenarios on water 169–196, Elsevier., 2005. resources of the Kelantan River Basin, Malaysia, Atmos. Res., 189, 1–10, doi:https://doi.org/10.1016/j.atmosres.2017.01.008, 2017. ● Mora, C., Dousset, B., Caldwell, I. R., Powell, F. E., Geronimo, R. C., Bielecki, C. R., Counsell, C. W. W., Dietrich, B. S., Johnston, E. T., ● Taylor, K. E., Stouffer, R. J. and Meehl, G. A.: An Overview of CMIP5 Louis, L. V, Lucas, M. P., McKenzie, M. M., Shea, A. G., Tseng, H., and the Experiment Design, Bull. Am. Meteorol. Soc., 93(4), Giambelluca, T. W., Leon, L. R., Hawkins, E. and Trauernicht, C.: 485–498, doi:10.1175/BAMS-D-11-00094.1, 2011. Global risk of deadly heat, Nat. Clim. Chang., 7, 501, 2017. ● Thai Meteorological Department.: No Title, Mean Mon. rainfall ● Oouchi, K., Yoshimura, J., Yoshimura, H., Mizuta, R., Kusunoki, S. Thailand., 2012. and Noda, A.: Tropical Cyclone Climatology in a Global-Warming Climate as Simulated in a 20 km-Mesh Global Atmospheric Model: ● Thrasher, B., Maurer, E. P., McKellar, C. and Duffy, P. B.: Technical Frequency and Wind Intensity Analyses, J. Meteorol. Soc. Japan. Note: Bias correcting climate model simulated daily temperature Ser. II, 84(2), 259–276, doi:10.2151/jmsj.84.259, 2006. extremes with quantile mapping, Hydrol. Earth Syst. Sci., doi:10.5194/hess-16-3309-2012, 2012. ● Patricola, C. M. and Wehner, M. F.: Anthropogenic influences on major tropical cyclone events, Nature, 563(7731), 339–346, ● United Nations Office for Disaster Risk Rduction: Terminology, 2017. doi:10.1038/s41586-018-0673-2, 2018. ● Wing, O. E. J., Bates, P. D., Smith, A. M., Sampson, C. C., Johnson, ● Perkins, S. E., Alexander, L. V and Nairn, J. R.: Increasing K. A., Fargione, J. and Morefield, P.: Estimates of present and future frequency, intensity and duration of observed global heatwaves and flood risk in the conterminous United States, Environ. Res. Lett., 13 warm spells, Geophys. Res. Lett., 39(20), (3), 034023, doi:10.1088/1748-9326/AAAC65, 2018. doi:10.1029/2012GL053361, 2012. ● Winsemius, H. C., Aerts, J. C. J. H., van Beek, L. P. H., Bierkens, M. ● Poapongsakorn, N. and Meethom, P.: Impact of the 2011 Floods, F. P., Bouwman, A., Jongman, B., Kwadijk, J. C. J., Ligtvoet, W., and Flood Management in Thailand, Econ. Welf. Impacts Disasters Lucas, P. L., van Vuuren, D. P. and Ward, P. J.: Global drivers of East Asia Policy Responses., 247–310, 2011. future river flood risk, Nat. Clim. Chang., 6, 381, 2015.

● Richard C. Selley, L. Robin M. Cocks, Ian R. Plimer (eds.) ● World Bank: Thai Flood 2011. Rapid Assessment for Resilient Encyclopedia of Geology. Chapter: Asia South-East. Elsevier, 2005, Recovery and Reconstruction Planning., 2012. pp.169-198.

● Risk Management Solutions.2006. Managing Tsunami Risk in the Aftermath of the 2004 Indian Ocean Earthquake & Tsunami 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