ASEAN countries to establish disaster risk insurance facility

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A number of countries belonging to the Association of Southeast Asian Nations (ASEAN) have signed a Memorandum of Understanding for the establishment of the region’s first disaster risk financing facility.

The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) will initially comprise a trust and an insurance company in Singapore, working in partnership and with technical support from the World Bank.

It will also provide a catastrophe risk insurance pool for ASEAN+3 countries, which include the Southeast Asian nations plus China, Japan and the Republic of Korea.

Representatives from the Finance Ministries of Cambodia, Indonesia, Japan, Lao PDR, Myanmar, and Singapore signed the memorandum at the ASEAN+3 Finance and Central Bank Deputies Meeting in the Republic of Korea last week.

SEADRIF will act as a regional platform to provide ASEAN countries with re/insurance solutions and technical advice to increase their financial resilience to climate and disaster risks.

By supporting pre-disaster planning