13th February 2020, Insurance Institute of India, Mumbai
Disaster Risk Finance is a growing discipline that addresses fiscal impacts and economic losses caused by natural hazards (e.g. cyclones, droughts, earthquakes, floods) and supports countries to increase their financial resilience to natural disasters. Disaster management, across the globe is facing a serious issue of funding gap. Pre, During and Post disaster requirement of funds are different. In the pre-disaster scenario, most countries are engaged in risk reduction. The process of risk reduction is a challenge and hence disaster risk reduction has been adopted as the part of development investment.
Mainstreaming Disaster Risk Reduction (DRR) has been the catch word for funding such activity. Many countries have implemented it differently. In India a differential mechanism was adopted. There has been a provision in the National Act of Disaster Management 2005 for the creation of a Disaster Mitigation Fund. However, unfortunately this fund could not be created so far. On the other hand, the Government created a concept of flexi fund as an alternative. Flexi fund is a part of the allocated development fund of each sector. Every sector will have to spend 25 percent of their total budget allocation ( Centrally sponsored scheme) on risk reduction in their own sector. So far, this has not been utilized appropriately and optimally by State Governments. In addition, the Government may take specific disaster risk mitigation projects depending on the national requirements.
In order to bring Insurance Companies, Policy makers and thought leaders to consider potential solutions to the problem, NIDM in collaboration with Insurance Institute of India is conducting a one-day workshop on “Disaster Risk Finance, Insurance and Risk Transfer” on 13th February 2020, Mumbai. The workshop will bring together various insurance organizations and innovative initiatives in a collective effort to address Disaster Risk and build a resilient society. To manage risks through tools and platforms, we intend to bring together the ideas of the experts as well as ambitious thinking and action.
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