IDEAS home Printed from https://ideas.repec.org/a/spr/masfgc/v22y2017i7d10.1007_s11027-016-9711-2.html
   My bibliography  Save this article

Disaster risk reduction and international catastrophe risk insurance facility

Author

Listed:
  • Nipawan Thirawat

    (Mahidol University International College)

  • Sirikamon Udompol

    (Thai Ministry of Finance)

  • Pathomdanai Ponjan

    (Thai Ministry of Finance)

Abstract

The objectives of this research are to investigate resource loss effects from flooding and to provide recommendations on disaster risk reduction policies. This research utilized a dynamic computable general equilibrium (CGE) model, which found that losses of resources had major negative impacts on real gross domestic product (GDP). Transitioning from national catastrophe insurance fund to an international risk pooling approach is discussed, and as the Global Catastrophe Risk Insurance Facility has not yet been established, our proposal suggests the Association of Southeast Asian Nations plus three (ASEAN + 3) Catastrophe Risk Insurance Facility (ACRIF) and the Association of Southeast Asian Nations plus three catastrophic bonds (ASEAN + 3 CAT bonds) as effective means of reducing fiscal liabilities arising from natural disasters, also effectively enhancing disaster risk reduction. These tools are complementary to Catastrophe Risk Swaps which are innovative global financial adaptation strategies designed to make communities and governments more resilient to disaster damages. They are ex-ante risk financing tools and sources of liquidity for damage restoration and economic recovery, which facilitates flexibility among the Association of Southeast Asian Nations plus three (ASEAN + 3) and other governments requiring special assistance. Most importantly, utilization of insurance and catastrophic bonds promotes the achievement of set objectives of global adaptation strategies, sustainable economic growth, and climate resilient development.

Suggested Citation

  • Nipawan Thirawat & Sirikamon Udompol & Pathomdanai Ponjan, 2017. "Disaster risk reduction and international catastrophe risk insurance facility," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(7), pages 1021-1039, October.
    • Handle: RePEc:spr:masfgc:v:22:y:2017:i:7:d:10.1007_s11027-016-9711-2
    DOI: 10.1007/s11027-016-9711-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11027-016-9711-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11027-016-9711-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erwann Michel-Kerjan & Ivan Zelenko & Victor Cardenas & Daniel Turgel, 2011. "Catastrophe Financing for Governments: Learning from the 2009-2012 MultiCat Program in Mexico," OECD Working Papers on Finance, Insurance and Private Pensions 9, OECD Publishing.
    2. Abhas K. Jha & Jennifer Duyne Barenstein & Priscilla M. Phelps & Daniel Pittet & Stephen Sena, . "Safer Homes, Stronger Communities : A Handbook for Reconstructing after Natural Disasters," World Bank Publications, The World Bank, number 2409, September.
    3. J. David Cummins & Olivier Mahul, 2009. "Catastrophe Risk Financing in Developing Countries : Principles for Public Intervention," World Bank Publications - Books, The World Bank Group, number 6289, December.
    4. Toshihiko Hayashi, 2012. "Japan's Post‐Disaster Economic Reconstruction: From Kobe to Tohoku," Asian Economic Journal, East Asian Economic Association, vol. 26(3), pages 189-210, September.
    5. Shigeyuki Abe & Shandre M. Thangavelu, 2012. "Natural Disasters and Asia: Introduction," Asian Economic Journal, East Asian Economic Association, vol. 26(3), pages 181-187, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Razmig Keucheyan, 2018. "Insuring Climate Change: New Risks and the Financialization of Nature," Development and Change, International Institute of Social Studies, vol. 49(2), pages 484-501, March.
    2. Sharon Barnhardt & Erica Field & Rohini Pande, 2017. "Moving to Opportunity or Isolation? Network Effects of a Randomized Housing Lottery in Urban India," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 1-32, January.
    3. Susannah Fisher & Swenja Surminski, 2012. "The roles of public and private actors in the governance of adaptation: the case of agricultural insurance in India," GRI Working Papers 89, Grantham Research Institute on Climate Change and the Environment.
    4. Heger, Martin Philipp & Neumayer, Eric, 2019. "The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth," Journal of Development Economics, Elsevier, vol. 141(C).
    5. Daroonwan Kamthonkiat & Thanawan Leelawatthanaphong & Kessinee Unapumnuk & Tuong Thuy Vu, 2023. "Recovery Assessment of Permanent Housing after the 2004 Tsunami in Thailand toward Sustainable Planning," Sustainability, MDPI, vol. 15(5), pages 1-22, March.
    6. Sandra Carrasco & David O’Brien, 2023. "Build Back Safely: Evaluating the Occupational Health and Safety in Post-Disaster Reconstruction," Sustainability, MDPI, vol. 15(9), pages 1-18, May.
    7. Michiyuki Yagi & Shunsuke Managi, 2018. "Decomposition analysis of corporate carbon dioxide and greenhouse gas emissions in Japan: Integrating corporate environmental and financial performances," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1476-1492, December.
    8. Sommarat Chantarat & Krirk Pannangpetch & Nattapong Puttanapong & Preesan Rakwatin & Thanasin Tanompongphandh, 2015. "Index-Based Risk Financing and Development of Natural Disaster Insurance Programs in Developing Asian Countries," Risk, Governance and Society, in: Daniel P. Aldrich & Sothea Oum & Yasuyuki Sawada (ed.), Resilience and Recovery in Asian Disasters, edition 127, chapter 0, pages 171-200, Springer.
    9. Burton, Cynthia & Ovadiya, Mirey, 2014. "Communication following a disaster," Social Protection Discussion Papers and Notes 91808, The World Bank.
    10. Eberl, Jakob & Jus, Darko, 2012. "The year of the cat: Taxing nuclear risk with the help of capital markets," Energy Policy, Elsevier, vol. 51(C), pages 364-373.
    11. Angelo Jonas Imperiale & Frank Vanclay, 2021. "Conceptualizing community resilience and the social dimensions of risk to overcome barriers to disaster risk reduction and sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 891-905, September.
    12. Fuentes-Castro, Hugo Javier. & Reyna-Bernal, Ana María., 2014. "Comparando con las grandes. Retos para las aseguradoras en reducción de costos," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(19), pages 7-32, segundo s.
    13. Shaye Palagi & Amy Javernick-Will, 2020. "Pathways to Livable Relocation Settlements Following Disaster," Sustainability, MDPI, vol. 12(8), pages 1-25, April.
    14. Kunreuther, Howard & Michel-Kerjan, Erwann, 2012. "Impact of behavioral issues on green growth policies and weather-related disaster reduction in developing countries," Policy Research Working Paper Series 6241, The World Bank.
    15. Eiji Yamamura, 2015. "Impact of the Fukushima nuclear accident on the body mass index of children in Japan 2010-2014," ISER Discussion Paper 0941, Institute of Social and Economic Research, Osaka University.
    16. International Monetary Fund, 2016. "Eastern Caribbean Currency Union: 2016 Discussion on Common Policies of Member Countries-Press Release and Staff Report," IMF Staff Country Reports 2016/333, International Monetary Fund.
    17. Lam, Juan Carlos & Adey, Bryan T. & Heitzler, Magnus & Hackl, Jürgen & Gehl, Pierre & van Erp, Noel & D'Ayala, Dina & van Gelder, Pieter & Hurni, Lorenz, 2018. "Stress tests for a road network using fragility functions and functional capacity loss functions," Reliability Engineering and System Safety, Elsevier, vol. 173(C), pages 78-93.
    18. Gujun Pu & Alice Chang-Richards & Suzanne Wilkinson & Regan Potangaroa, 2021. "What makes a successful livelihood recovery? a study of China’s Lushan earthquake," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 105(3), pages 2543-2567, February.
    19. Yamamura, Eiji, 2016. "Impact of the Fukushima nuclear accident on obesity of children in Japan (2008–2014)," Economics & Human Biology, Elsevier, vol. 21(C), pages 110-121.
    20. Benjamin L. Collier, 2020. "Strengthening Local Credit Markets Through Lender‐Level Index Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(2), pages 319-349, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:masfgc:v:22:y:2017:i:7:d:10.1007_s11027-016-9711-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.