Insurance & Risk Transfer

Risk transfer

The process of formally or informally shifting the financial consequences of particular risks from one party to another, whereby a household, community, enterprise or State authority will obtain resources from the other party after a disaster occurs, in exchange for ongoing or compensatory social or financial benefits provided to that other party.

Annotation: Insurance is a well-known form of risk transfer, where coverage of a risk is obtained from an insurer in exchange for ongoing premiums paid to the insurer. Risk transfer can occur informally within family and community networks where there are reciprocal expectations of mutual aid by means of gifts or credit, as well as formally, wherein governments, insurers, multilateral banks and other large risk-bearing entities establish mechanisms to help cope with losses in major events. Such mechanisms include insurance and reinsurance contracts, catastrophe bonds, contingent credit facilities and reserve funds, where the costs are covered by premiums, investor contributions, interest rates and past savings, respectively.

Author Name
Sarah Landelle
Character
The Government of Croatia and the Disaster Preparedness and Prevention Initiative for South-Eastern Europe, with UNDRR support, organised a 3-day workshop on the EFDRR Roadmap priority area on investing in disaster risk reduction (DRR)
Croatia - government Disaster Preparedness and Prevention Initiative for South Eastern Europe United Nations Office for Disaster Risk Reduction - Regional Office for Europe & Central Asia
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Geneva
Net Resllience Gain
UN Special Representative of the Secretary-General for Disaster Risk Reduction Mami Mizutori has proposed the idea of a “net resilience gain” to match the “net zero” approach to greenhouse gas emissions.
United Nations Office for Disaster Risk Reduction
Aerial view of La Datcha beach (Le Gosier plage) in Guadeloupe.
The Caribbean’s fragile economy is being battered by the pandemic that is keeping tourists from its tropical beaches and leaving heavily-indebted countries ill-prepared to cope with violent hurricanes and other emergencies, say experts.
United Nations Office for Disaster Risk Reduction – Regional Office for the Americas and the Caribbean
Cover image for China story
China announced that it has reduced by half its disaster-related mortality over five years thanks to the adoption of a disaster prevention-centred approach, and is seeking to strengthen international cooperation around disaster risk reduction with countries around the world.
United Nations Office for Disaster Risk Reduction - Regional Office for Asia and Pacific United Nations Office for Disaster Risk Reduction - Office in Incheon for Northeast Asia and Global Education and Training Institute for Disaster Risk Reduction
Front Cover of the 2021 Financing for Sustainable Development Report
On 15 April, Member States gathered virtually to adopt the Outcome Document of the 2021 Economic and Social Council (ECOSOC) Forum on Financing for Development.
United Nations Office for Disaster Risk Reduction - New York UNHQ Liaison Office
Panelists of Third PRP webinar
Suva – Pacific island countries are seeking to broaden and strengthen their disaster risk financing strategies as a key element of addressing the ongoing Climate Emergency. With climate change remaining the biggest threat – even in the era of a pandemic –
United Nations Office for Disaster Risk Reduction - Regional Office for Asia and Pacific