Assessing Financial Protection against Disasters

The World Bank and Asian Development Bank have worked in more than 50 countries to (i) quantify the economic and fiscal impact of disasters; (ii) take stock of existing mechanisms to finance these costs and analyze their legal and institutional underpinnings; (iii) review aspects of the insurance and capital markets that are relevant for disaster risk finance; and (iv) estimate potential funding gaps following disasters. This note provides guidance on how to conduct such a diagnostic exercise in a systematic and comprehensive manner.