ABAC’s Disaster Recovery Task Force zooms in on Policy Frameworks and Risk Financing
In its third meeting on April 27, the ABAC Disaster Recovery Planning and Risk Management Task Force, convened by ABAC Philippines focused on two sub-themes: (1) disaster recovery policy frameworks and (2) insurance and risk sharing models and options.
Koji Suzuki, co-chair of APEC’s Emergency Preparedness Working Group and Li Wei Sen, Secretary-General of the National Science and Technology Center for Disaster Reduction presented on build back better strategy based on lessons and practices from earthquake experience in Japan and from large-scale disasters in Chinese Taipei, respectively.
Critical to disaster recovery policy framework is preparedness and public-private partnership. Recovery measures must be integrated in the development plans and disaster management plans, which should be in place prior to disaster. Meanwhile, active engagement between the public and private sector would be very important to accelerate recovery.
Li Wei Sen identified three interrelated plans needed by societies post-disaster:
- Operation Continuity Plan (OCP) at the government level – lifeline systems, public health, education, finance, critical infrastructure
- Business Continuity Plan (BCP) at private sector – employees, customers, contractors, supply chain
- Livelihood Continuity Plan (LCP) at communities – food, water, sanitation, incomes
These plans require smart investments, both structural and non-structural measures to help minimize risks. To further manage the impact of disasters, insurance schemes and financing instruments must be considered.
Benedikt Signer, Coordinator in World Bank’s Disaster Risk Financing and Insurance Program and Augusto Hidalgo, co-Sherpa of the Asia Pacific Financial Forum (APFF’s) Disaster Risk Financing and Insurance (DRFI) shared how APEC economies could enhance resilience through disaster risk financing and insurance.
Augusto Hidalgo presented three ideas to consider:
- Measurable common goal to quantify risk so it can be financed
- Minimum standards of risk information and analysis
- Approach to crowd in private sector asset managers
Understanding these risks require the right information, including data analytics in order to better integrate risk in public and private investments, planning and service delivery, and to make sound financial decisions.
Benedikt Signer also stressed that building resilient frameworks, preparedness plans, and operational plans should be “shock-agnostic” taking into account potential costs, operational steps for recovery, and preparedness measures for any type of shock. This way, shock-responsive systems would be built rather than hazard-specific disaster risk measures.
- Koji Suzuki, co-Chair, APEC Emergency Preparedness Working Group: BBB Disaster Recovery Frameworks for 2 Major Earthquake Disasters
- Li Wei Sen, Secretary-General, NCDR Chinese Taipei: Lessons, Experiences and Practices of Large-scale Disaster Recovery
- Benedikt Signer, Coordinator, World Bank Disaster Risk Financing and Insurance Program: Disaster Risk Finance
- Augusto Hidalgo, co-Sherpa, APFF Disaster Risk Financing and Insurance: Achieving Sendai Goals through Private Sector Finance