Download to read offline
Uploaded byUNDP Eurasia
2018 DRR Financing 1.6 Kota Katsumata
The document discusses Japan's experience in disaster risk reduction and the role of insurance in mitigating risks, emphasizing the necessity of tailored structural and non-structural measures. It illustrates various insurance models, such as cooperative insurance during hurricanes, and highlights the importance of investments in disaster risk reduction for long-term damage prevention and recovery efficiency. Key lessons include shifting focus from post-disaster responses to proactive prevention and the necessity of government support for sustainable risk management.
More Related Content
Similar to 2018 DRR Financing 1.6 Kota Katsumata
2018 DRR Financing 1.6 Kota Katsumata
- 1. JICA and Japanexperience in Disaster Risk Reduction and financing, what we have done and lessons learned 4 Oct 2018 Kota Katsumata, Representative JICA Turkey Office 0 the Second Bosphorus Bridge, Istanbul JICA’s ODA loan project
- 2. JICA in Turkey 1 MARMARAY,Istanbull JICA’s ODA loan project Earthquake and Tsunami Disaster Mitigation in The Marmara Region and Disaster Education in Turkey Japan-Turkey Joint Research Project (SATREPS)
- 3. ➢ Disaster RiskReduction requires a tailor-made combination of Structural Measures and Non-structural Measures ➢ Insurances and risk transfer/ sharing are effective in some cases, however should not come as first priority in most Countries, due to the amount of unprotected risks. 2 Key Messages of this Presentation
- 4. • Applicable • Non-Applicable •Applicable but should be avoided: causes moral hazard 3 Applicability of Insurance---3 types ➢ Risk sharing in terms of location and time ➢ Size of Total risk to be reduced
- 5. • Hurricane CooperativeInsurance – Neighboring countries on the hurricane route potentially carry same risk – A cyclone takes single route and selectively hits one or few countries among those countries – The victim country can be supported by other countries who fortunately were not hit this time – The country who supported might be recipient side next time – Meteorologically, a single hurricane will not hit all countries therefore cooperative mutual support insurance may exist and be effective. 4 Examples of Applicable Insurance: Hurricane Cooperative Insurance
- 6. • Droughts arebeyond human control and cannot be avoided • rainfall oriented index as triggers • Compensation to the loss of production, not infra (1) Irrigation facilities designed for 1/10 years drought No damage to the facility, compensate production (2) Non-Irrigated “rain-fed” agriculture 5 Examples of Applicable Insurance: Crop Insurance Image from landscapeworkshop.com
- 7. Hospitals Schools Factories • Typically inurban population dense areas: unplanned land use, no flood control measures • Damage is too large to cover everything • Insurance will help recover but without mitigation, damage will never reduce and will repeat: moral hazard 6 Examples of Insurance that will cause moral hazard: Flood Insurance without measures Hospitals Schools Factories Levees will gradually reduce damages
- 8. 7 Applicability of RiskSharing and Insurance Frequency Regional Distribution Magnitude Mitigation Measures Floods Has return period depending on size Limited and can be predicted Cyclones cannot be prevented but many options exist for protection Droughts Has return period depending on size Limited Rain fed to irrigation Crop scheduling Earthquakes Has return period depending on size Limited Incident cannot be prevented but retrofitting buildings can protect people Landslides irreversible Vulnerability differs in landscape Sea level rise, CC irreversible Simultaneous in all coastal areas Equal and irreversible Salinity irreversible simultaneous Equal and irreversible Volcano Eruptions Same location Equal and irreversible Very difficult × × × × × × × × × 〇 〇 〇〇 〇
- 9. • Once aflood occurs and the house is destroyed, the insurance will cover the same location • Rate defers depending on risk assessment • Insurance fees work as a guide for land use plan, and to Build Back Better • The people can avoid to face the same disaster and damage repeatedly 8 Insurance as a guide to Build Back Better Cannot Live High rate of insurance Medium high rate of insurance Lower rate of insurance
- 10. • Before 2011flood in Bangkok Flood insurance did exist however only 30% of damage were covered • After 2011 flood Limited countermeasures implemented by Thai Gov →No change in Flood risk Insurance company refused to provide service ↓ No interest by Market to Flood Insurance in Thailand 9 Case of Thailand Flood Insurance
- 11. 10 Risk types differby magnitude and frequency Intensive event, Low frequency but serious damage just by one event Extensive event, High frequency, small damage by each but adding up to huge damage Often Frequency Rare small Magnitude Large
- 12. 11 Required civil minimumof safety depends on the matureness of the society Protected Risk Residual Risk Structural Measures Risk is too huge for insurance to cover Nonstructural Measures ➢Re-foresting ➢Appropriate landuse ➢Food forecasting ➢Early Warning ➢Evacuation ➢Insurance ➢BCP, BCM, Area BCM ➢Levee ➢Barrage ➢Reservoirs
- 13. Disaster situations areso different among regions Number of incidents: more in Asia Number affected depends on pop density Economic damage depends on econ situ Mortality Higher in Africa Source: EM-DAT1981-2016 Africa Americas Asia Europe Oceania Africa Americas Asia Europe Oceania Africa Americas Asia Europe Oceania Africa Americas Asia Europe Oceania
- 14. 13 Insurance helps toactivate financial flows during or after an extreme event ➢ Post-event loss- reducing activities ➢ Safety nets Coping with already- incurred substantial losses and reduce the magnitude of negative consequences
- 15. • $1 spentfor prevention saves $4~$7 in response • $4~$7 compensation by insurance costs… 14 Pre-investment to disaster risk reduction saves expenditures for response
- 16. 15 DRR investment reducesdamages, and enables faster recovery and reconstruction Extent of Development Time Economic growth when no disasters occur investment in DRR no investment in DRR Effect of investment in DRR Investing in DRR Difference in economic growth Less damage Delay in recovery Delay in reconstruction
- 17. 16 Efforts need toshift from post-disaster response to prevention and mitigation Efforts to shift emphasis and investment from post-disaster response to prevention and mitigation will gradually reduce the overall impact and burden caused by disasters
- 18. 17 Public support, mutualsupport and self support all have their roles Development phase Un-protected Residual Risk Protected Risk DRR Prevention Measures Public Support Mutual Support Self Support Public Support Mutual Support Self Support Self Support Self Defense Mutual SupportPublic Support
- 19. Continued Investment inDisaster Risk Reduction has been Basic to the Development 18 5 to 8 percent of the government budget invested in disaster risk reduction Source: Created by the Cabinet Office using materials from various ministries and agencies.
- 20. 19 Japan has successfullyreduced deaths by floods by investing in risk reduction
- 21. 20 School Safety retro-fit,anti-earthquake strengthening For elementary school case, almost to 100% within 15 years effort
- 22. • Disaster insurancemay be applicable in some fields • Depending on population density and situations of natural disasters, structural measures to prevent flood should come as priority. Even through intensive hazard cases, structural measures will protect the asset from inundation. • The expenditure spent for structural measures will become an asset to produce wealth, and will turn out to be more cost efficient in the long run. • The expenditure spent for insurance will be effective for recovery, however the assets will be lost in every disaster and the recovery process will repeat. 21 Conclusion