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GIZ Emphasizes Importance of Microinsurance in Nat Cat Response

Warming climate in Asia and the presence of geological risks make this region vulnerable to natural catastrophes (NatCat) and its more than 4 billion inhabitants exposed to various perils. Typhoon Haiyan is a haunting proof that catastrophic events can expose populations to financial shocks.

Working towards resilience is the emerging trend alongside inclusive insurance across the region. Such is the key message in the forthcoming regional conference on Microinsurance and Natural Catastrophes: Towards a Public-Private Cooperation for Efficient Risk Management on February 3 & 4, 2015 at Hyatt Regency Hotel. One of the highlights of the event is the launch of the report entitled “Study of Effectiveness of Microinsurance Service Providers’ Response to Typhoon Haiyan commissioned by GIZ and the Microinsurance Network (MiN).

GIZ, through its regional flagship program, Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia (RFPI Asia) will engage about eighty-five participants from public and private sectors, including local and international experts to deliberate, learn lessons from each other’s experience and find ways to advocate the importance of microinsurance in re-establishing the cash flow of households following natural catastrophes.

Worsening threats like earthquakes, floods, and cyclones in this region have incurred economic losses. According to the Center for Research on the Epidemiology of Disasters (CRED), Asia lost USD 359 billion to floods, USD314 billion to earthquakes, USD223 billion to tsunami, USD167 billion to typhoons and USD34 billion to droughts since the 1900’s.

Weighing the losses against opportunities, the conference will showcase a mix of policies disaster preparedness and mitigation initiatives, best learnt practices across the region, report presentation on microinsurance providers’ response study in Typhoon Haiyan and tools such as Disaster Risk Finance in the context of microinsurance.

At the end of the conference, partner countries and sectoral participants are expected to prepare the plans for short, medium and long term measures to support the implementation of microinsurance as a risk protection mechanism against NatCats.