DRR financing and cooperation with private sector
14:00 - 15:30 CET
24 November 2021
EFDRR Virtual Platform
Disasters and the associated economic shocks pose a significant threat to human life and well-being, particularly for the poorest states and the most vulnerable people in Europe and Central Asia. The COVID-19 pandemic has put a spotlight on how unprepared many countries are to respond to a diversity of risks, beyond those that have impacted the health sector. A lack of resilience to disasters in both developed and developing economies poses an increasing threat to economic growth and global security. Therefore, countries seeking to mitigate these risks should prioritize funding for development that aims to build resilience and sustainability.
The disaster risk reduction (DRR) approach of any country should be a comprehensive one, where actions fit appropriately into a framework of prevention, preparedness, response and recovery. Governments have invariably integrated these elements into their planning and budgeting processes. However, in many countries the element of risk transfer is rarely considered in addressing residual risks - or risks that the government simply cannot eliminate on its own, regardless of all the measures that have been put in place.
Cooperation with the private sector, and with the insurance industry, is a key factor for financing successful disaster risk reduction. Insurance expertise can be tapped to improve understanding of the economics behind disasters and shocks that are posing significant threat to human lives and personal wellbeing, develop tools and solutions that include insurance mechanisms accentuating inequalities. and also, to provide an opportunity to have direct multi-sectoral forum with private sector regarding technical assessments, partnerships, outreach and advocacy in DRR financing. The solutions generated by the DRR finance industry are essential for sustainable development and the SDGs achievement.
Manager, Istanbul Regional Hub for Europe and Central Asia, UNDP
Special Advisor, UNDP Finance Sector Hub and Team Leader, UNDP Insurance and Risk Finance Facility
UNDP Resident Representative, Republic of North Macedonia
Esther Baur Reinecke
Head of Europe and Director of Public Sector Solutions, Swiss Re
Programme Management Officer, Risk Knowledge, UNDRR