Disaster Risk Financing Instruments
subtitle Financing Instruments
Strengthening financial resilience and preparedness for disasters and slow-onset hazard events requires a strategic approach to risk financing. This approach must consider both the potential frequency and severity of different events and risks. The effectiveness of risk financing instruments in relation to different risks can be significantly improved when different types of instruments are combined strategically to help maximise coverage and reduce gaps in protection. Governments need financing to meet a variety of disaster risk-related needs. These resources are required at various times for disaster prevention, preparedness, response and recovery. The amount of resources needed at these stages will vary, as does the cost of capital. These financial resource needs can be broadly broken down into ex-ante financing needs (for which resources are spent before an event takes place) and ex-post needs (for which resources are spent after an event occurs). There are a variety of risk financing instruments that use either ex-ante or ex-post resources. These are described in detail below.
While the cost associated with ex-ante and ex-post financing needs are borne at different points, they should both be considered before an event occurs, during the drafting of the DRF strategy and DRM plan. DRF planning ensures that the risk financing tools that are ultimately selected are the most appropriate and cost-effective given the need.
Disaster Risk Finance Instruments
- Pacific Catastrophe Risk Insurance Company (PCRIC)
Risk Instrument Type
Risk Transfer
Description
PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.
PIC(s)/ Beneficiaries
Current Pacific Island country members of the Foundation (PCRFI) are Cook Islands, Fiji, Marshall Islands, Samoa, Tonga and Vanuatu. All other member nations of the Pacific Island Forum Secretariat (PIFS) are eligible and are actively encouraged to become members.
- Asian Development Bank- Contingency Disaster Funds
Risk Instrument Type
Risk Retention
Description
ADB’s Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
PIC(s)/ Beneficiaries
Cook Islands, Palau, FSM, Kiribati, Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu, Federated States of Micronesia
- Pacific Insurance and Climate Adaptation Programme (PICAP)
Risk Instrument Type
Risk Transfer
Description
UNCDF, UNDP, and UNU-EHS are jointly implementing the Pacific Insurance and Climate Adaptation Programme (PICAP) that aims to develop, deploy, pilot, test, and scale market-based financial instruments including parametric insurance. This new approach to offering insurance will provide Pacific people with immediate cash relief after extreme weather events and natural hazards. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments.
PIC(s)/ Beneficiaries
Fiji, Solomon Islands, Samoa, Tonga, Vanuatu
- IDA Catastrophe Deferred Drawdown (Cat DDO) World Bank
Risk Instrument Type
Risk Retention
Description
A contingent financing line that provides immediate liquidity following a natural disaster, and/or health-related event. Funds become available for disbursement after the drawdown trigger – typically the member country’s declaration of a state of emergency – is met. At approval a country must have an adequate macroeconomic policy framework and a satisfactory disaster risk management program in place (or under preparation), which the Bank will monitor periodically
PIC(s)/ Beneficiaries
Samoa, Vanuatu, Tuvalu and Fiji
- Contingent Emergency Response Components (CERC) World Bank
Risk Instrument Type
Risk Retention
Description
CERC is an arrangement within IDA projects that allow IDA funds to be quickly reallocated to emergency recovery activities in the event of a disaster. Inclusion of a CERC in IDA projects enables countries to use IDA funds without the need for time-consuming project restructuring. Up to 5% of un-disbursed IDA funds can be drawn upon through the CERC budget line. The inclusion of CERCs within World Bank projects is increasingly recommended for all IDA eligible countries. For example, Federated States of Micronesia, Marshall Islands, Samoa and Tonga have either used or have access to CERC financing arrangements.
PIC(s)/ Beneficiaries
Samoa, Tonga, Federated States of Micronesia, Marshall Islands
- Forecast-based or Anticipatory Crisis Finance and Early Action - IFRC, FAO, OCHA, WFP, START Network
Risk Instrument Type
Risk Reduction and Preparedness Instruments
Description
Forecast-based/Anticipatory finance is triggered ‘post-forecast, pre-emergency’. These concepts refer to financing arrangements that use available climate and weather information and forecasts to trigger financing for pre-planned actions designed to prevent risks and reduce the potential for harm to people and property before an event occurs.
PIC(s)/ Beneficiaries
National Red Cross Societies & other stakeholders respectively.
- Rapid Credit Facility - International Monetary Fund
Risk Instrument Type
International Emergency Financing
Description
provides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.
PIC(s)/ Beneficiaries
(PRGT Eligible IMF Members) Federated States of Micronesia, Kiribati, Marshall Islands, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu
- Micro Insurance for Homes, Individuals, Families, Communities and Businesses - Fiji CARE
Risk Instrument Type
Risk Transfer
Description
Fiji Care’s community-based insurance product offers a low cost bundled insurance inclusive of life insurance, medical coverage and fire protection.
PIC(s)/ Beneficiaries
Fiji, Solomon Islands and Vanuatu
Link
- Central Emergency Response Fund (CERF) - United Nations
Risk Instrument Type
International Emergency Financing
Description
The CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.
PIC(s)/ Beneficiaries
Fiji, Solomon Islands, Papua New Guinea, Vanuatu, Marshall Islands
- Disaster Relief Emergency Fund - International Federation of the Red Cross and Red Crescent Societies
Risk Instrument Type
International Emergency Financing
Description
The Disaster Relief Emergency Fund (DREF) provides immediate financial support to National Red Cross and Red Crescent Societies. The DREF is managed by the IFRC Secretariat as a central fund and requests are reviewed on a case-by-case basis. Funds can be allocated in as little as 24 hours. Grants can be provided for small to medium scale disasters and health emergencies that do not always attract the attention and interest of media or the international community. Funding can also be accessed in the form of loans for Emergency Appeal to kick start operations in large-scale disasters.
PIC(s)/ Beneficiaries
All National Red Cross Societies
- Rapid Credit Facility and Financing Instrument - (International Monetary Fund)
Risk Instrument Type
International Emergency Financing
Description
The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible. The IMF’s Rapid Financing Instrument (RFI) provides rapid finance to all countries facing an urgent balance of payments need as the result of a financial crisis, disaster event, or other major sources of economic disruption.
PIC(s)/ Beneficiaries
Tonga, Samoa, Solomon Islands (RCF and RFI), Papua New Guinea
- The Tuvalu Climate Change and Disaster Survival Fund
Risk Instrument Type
Risk Retention
Description
A nationally driven and nationally owned fund that provides a sustainable, predictable and accessible source of finance for Climate Change and Disaster Risk Management activities
PIC(s)/ Beneficiaries
Tuvalu
- Standby Emergency Credit for Urgent Recovery (SECURE) - Japan
Risk Instrument Type
Risk Retention
Description
A contingent credit line, which gives governments immediate access to funds after a natural disaster, based on pre-existing agreements.
PIC(s)/ Beneficiaries
Fiji
- Pacific islands climate change insurance facility (PICCIF)
Risk Instrument Type
Risk Transfer
Description
Is a proposed body aimed at the development of climate change risk-transfer products for Pacific Island nations. The aim of the PICCIF is to help people, cultures and livelihoods rebuild after the impacts of climate change. It seeks to address a variety of slow onset and extreme weather events that are currently not covered in the Pacific region by insurance or other mechanisms. It aims to provide the necessary incentives and information to improve the ownership and actions on addressing climate change risks. The PICCIF is additional to the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) as it responds to climate change risks and will, build on the work of other insurance, social payment and index mechanisms that operate at the regional, national, community and individual level but address specific needs in the context of Pacific Island Countries that are not being met at the moment
PIC(s)/ Beneficiaries
- The Pacific Resilience Facility - PIFS
Risk Instrument Type
Risk Transfer
Description
The PRF provides full-grant financing without debt. The PRF is a self-sustaining financial model. The PRF will offer grants to governments for community-level projects that are: crucial for disaster risk reduction, small-scale and community-level. Forum Leaders have endorsed the PRF. It is the only self-sustaining Facility of its kind that is led by the region and focused on the communities of the Blue Pacific.
PIC(s)/ Beneficiaries
- Humanitarian Cash Programm - Pacific Regional Cash Working Group
Risk Instrument Type
International Emergency Financing
Description
Cash and Voucher Assistance (CVA) continues to be an expanding modality for the delivery of humanitarian assistance in the Pacific region. The humanitarian partners have used CVA along with other modalities to support the lives of people affected by disasters due to Its role as an efficient, effective, and flexible mode of addressing the humanitarian needs during all stages of the disaster life cycle have enhanced, while strengthening livelihoods, markets, and local economy or long-terms sustainable results in a dignified way with the inclusion of gender and disabilities mainstreaming and targeted actions. Contributing also to the recovery, resilience, and peacebuilding agendas.
PIC(s)/ Beneficiaries
Fiji, Vanuatu, Solomon Islands, Papua New Guinea
- Multi-Donor Trust Fund for Tsunami, Disaster and Climate Preparedness - ESCAP
Risk Instrument Type
Risk Retention
Description
The Fund is part of the overall United Nations effort to strengthen resilience across the Asia-Pacific region. It contributes to the narrowing of capacity gaps and supports the development of an integrated, regional early warning system comprised of a network of collaborative centres. In 2011, the scope of the Fund was expanded to also cover disaster and climate preparedness, while retaining a focus on end-to-end early warning for coastal hazards.
PIC(s)/ Beneficiaries
- Asia Pacific Disaster Response Fund - ADB
Risk Instrument Type
International Emergency Financing
Description
The fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
PIC(s)/ Beneficiaries
Fiji, Nauru, Niue, Solomons Islands, Vanuatu, Cook Islands, Kiribati, Tuvalu, Papua New Guinea, Federated States of Micronesia, Marshall Islands, Samoa, Palau
- National Budgetary Instruments
Risk Instrument Type
Risk Retention
Description
Available public funds as dedicated national funds to help improve national financial capacity to absorb the financial costs of climate change and disaster-related losses.
PIC(s)/ Beneficiaries
Tonga, Tuvalu, Kiribati
Link
- Sovereign green bond
Risk Instrument Type
Risk Retention
Description
Green bonds are debt instruments used by the government to finance projects that have a positive impact on the environment. in 2017, Fiji was the first developing country to successfully issue a sovereign green bond, which raised FJD100 million to fund climate projects. The country also raised more than FJD392 million between 2017 and2019 through an Environmental and Climate Adaptation Levy (ECAL), imposed on specific goods and services to fund domestic efforts to adapt to climate change and reduce risk.
PIC(s)/ Beneficiaries
Fiji
- National Disaster Relief and Rehabilitation Fund and the Rehabilitation Fund
Risk Instrument Type
Risk Retention
Description
These funds support DRR and recovery activities. The Ministry of Finance and the NDMO work together to allocate funds. There are also examples of smaller funds, which have been used to support communities to prepare for or recover from disaster.
PIC(s)/ Beneficiaries
Fiji
- Climate Relocation and Displaced Peoples Trust Fund
Risk Instrument Type
Risk Retention
Description
A trust fund dedicated to finance anticipatory relocation of communities and infrastructure considered to be threatened by severe climate or disaster risk. This fund is designed to act as a source of immediate finance to support communities displaced unexpectedly following a disaster event. The fund is resourced by both domestic revenue and external donor support. The Fiji Government deposits 3% of all revenue raised through ECAL in the trust fund, and also seeks contributions from bilateral and multilateral sources
PIC(s)/ Beneficiaries
Fiji
Disaster Risk Finance Instruments by Country
- Cook Islands
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Federated States of Micronesia
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.Risk RetentionContingent Emergency Response Components (CERC) World BankCERC is an arrangement within IDA projects that allow IDA funds to be quickly reallocated to emergency recovery activities in the event of a disaster. Inclusion of a CERC in IDA projects enables countries to use IDA funds without the need for time-consuming project restructuring. Up to 5% of un-disbursed IDA funds can be drawn upon through the CERC budget line. The inclusion of CERCs within World Bank projects is increasingly recommended for all IDA eligible countries. For example, Federated States of Micronesia, Marshall Islands, Samoa and Tonga have either used or have access to CERC financing arrangements.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Fiji
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk TransferPacific Insurance and Climate Adaptation Programme (PICAP)The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.Risk TransferMicro Insurance for Homes, Individuals, Families, Communities and Businesses - Fiji CAREFiji Care’s community-based insurance product offers a low cost bundled insurance inclusive of life insurance, medical coverage and fire protection.International Emergency FinancingCentral Emergency Response Fund (CERF) - United NationsThe CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.Risk RetentionStandby Emergency Credit for Urgent Recovery (SECURE) - JapanA contingent credit line, which gives governments immediate access to funds after a natural disaster, based on pre-existing agreements.International Emergency FinancingHumanitarian Cash Programm - Pacific Regional Cash Working GroupCash and Voucher Assistance (CVA) continues to be an expanding modality for the delivery of humanitarian assistance in the Pacific region. The humanitarian partners have used CVA along with other modalities to support the lives of people affected by disasters due to Its role as an efficient, effective, and flexible mode of addressing the humanitarian needs during all stages of the disaster life cycle have enhanced, while strengthening livelihoods, markets, and local economy or long-terms sustainable results in a dignified way with the inclusion of gender and disabilities mainstreaming and targeted actions. Contributing also to the recovery, resilience, and peacebuilding agendas.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.Risk RetentionNational Disaster Relief and Rehabilitation Fund and the Rehabilitation FundThese funds support DRR and recovery activities. The Ministry of Finance and the NDMO work together to allocate funds. There are also examples of smaller funds, which have been used to support communities to prepare for or recover from disaster.Risk RetentionClimate Relocation and Displaced Peoples Trust FundA trust fund dedicated to finance anticipatory relocation of communities and infrastructure considered to be threatened by severe climate or disaster risk. This fund is designed to act as a source of immediate finance to support communities displaced unexpectedly following a disaster event. The fund is resourced by both domestic revenue and external donor support. The Fiji Government deposits 3% of all revenue raised through ECAL in the trust fund, and also seeks contributions from bilateral and multilateral sources
- Kiribati
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.Risk RetentionNational Budgetary InstrumentsAvailable public funds as dedicated national funds to help improve national financial capacity to absorb the financial costs of climate change and disaster-related losses.
- Nauru
- Risk Instrument TypeInstrument TitleDescriptionLinkInternational Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Niue
- Risk Instrument TypeInstrument TitleDescriptionLinkInternational Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Palau
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Papua New Guinea
- Risk Instrument TypeInstrument TitleDescriptionLinkInternational Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.International Emergency FinancingCentral Emergency Response Fund (CERF) - United NationsThe CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.International Emergency FinancingRapid Credit Facility and Financing Instrument - (International Monetary Fund)The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible. The IMF’s Rapid Financing Instrument (RFI) provides rapid finance to all countries facing an urgent balance of payments need as the result of a financial crisis, disaster event, or other major sources of economic disruption.International Emergency FinancingHumanitarian Cash Programm - Pacific Regional Cash Working GroupCash and Voucher Assistance (CVA) continues to be an expanding modality for the delivery of humanitarian assistance in the Pacific region. The humanitarian partners have used CVA along with other modalities to support the lives of people affected by disasters due to Its role as an efficient, effective, and flexible mode of addressing the humanitarian needs during all stages of the disaster life cycle have enhanced, while strengthening livelihoods, markets, and local economy or long-terms sustainable results in a dignified way with the inclusion of gender and disabilities mainstreaming and targeted actions. Contributing also to the recovery, resilience, and peacebuilding agendas.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Republic of Marshall Islands
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.Risk RetentionContingent Emergency Response Components (CERC) World BankCERC is an arrangement within IDA projects that allow IDA funds to be quickly reallocated to emergency recovery activities in the event of a disaster. Inclusion of a CERC in IDA projects enables countries to use IDA funds without the need for time-consuming project restructuring. Up to 5% of un-disbursed IDA funds can be drawn upon through the CERC budget line. The inclusion of CERCs within World Bank projects is increasingly recommended for all IDA eligible countries. For example, Federated States of Micronesia, Marshall Islands, Samoa and Tonga have either used or have access to CERC financing arrangements.International Emergency FinancingCentral Emergency Response Fund (CERF) - United NationsThe CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Samoa
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.Risk TransferPacific Insurance and Climate Adaptation Programme (PICAP)The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.Risk RetentionIDA Catastrophe Deferred Drawdown (Cat DDO) World BankA contingent financing line that provides immediate liquidity following a natural disaster, and/or health-related event. Funds become available for disbursement after the drawdown trigger – typically the member country’s declaration of a state of emergency – is met. At approval a country must have an adequate macroeconomic policy framework and a satisfactory disaster risk management program in place (or under preparation), which the Bank will monitor periodicallyRisk RetentionContingent Emergency Response Components (CERC) World BankCERC is an arrangement within IDA projects that allow IDA funds to be quickly reallocated to emergency recovery activities in the event of a disaster. Inclusion of a CERC in IDA projects enables countries to use IDA funds without the need for time-consuming project restructuring. Up to 5% of un-disbursed IDA funds can be drawn upon through the CERC budget line. The inclusion of CERCs within World Bank projects is increasingly recommended for all IDA eligible countries. For example, Federated States of Micronesia, Marshall Islands, Samoa and Tonga have either used or have access to CERC financing arrangements.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.International Emergency FinancingRapid Credit Facility and Financing Instrument - (International Monetary Fund)The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible. The IMF’s Rapid Financing Instrument (RFI) provides rapid finance to all countries facing an urgent balance of payments need as the result of a financial crisis, disaster event, or other major sources of economic disruption.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Solomon Islands
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.Risk TransferPacific Insurance and Climate Adaptation Programme (PICAP)The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.Risk TransferMicro Insurance for Homes, Individuals, Families, Communities and Businesses - Fiji CAREFiji Care’s community-based insurance product offers a low cost bundled insurance inclusive of life insurance, medical coverage and fire protection.International Emergency FinancingCentral Emergency Response Fund (CERF) - United NationsThe CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.International Emergency FinancingRapid Credit Facility and Financing Instrument - (International Monetary Fund)The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible. The IMF’s Rapid Financing Instrument (RFI) provides rapid finance to all countries facing an urgent balance of payments need as the result of a financial crisis, disaster event, or other major sources of economic disruption.International Emergency FinancingHumanitarian Cash Programm - Pacific Regional Cash Working GroupCash and Voucher Assistance (CVA) continues to be an expanding modality for the delivery of humanitarian assistance in the Pacific region. The humanitarian partners have used CVA along with other modalities to support the lives of people affected by disasters due to Its role as an efficient, effective, and flexible mode of addressing the humanitarian needs during all stages of the disaster life cycle have enhanced, while strengthening livelihoods, markets, and local economy or long-terms sustainable results in a dignified way with the inclusion of gender and disabilities mainstreaming and targeted actions. Contributing also to the recovery, resilience, and peacebuilding agendas.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
- Tonga
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.Risk TransferPacific Insurance and Climate Adaptation Programme (PICAP)The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.Risk RetentionIDA Catastrophe Deferred Drawdown (Cat DDO) World BankA contingent financing line that provides immediate liquidity following a natural disaster, and/or health-related event. Funds become available for disbursement after the drawdown trigger – typically the member country’s declaration of a state of emergency – is met. At approval a country must have an adequate macroeconomic policy framework and a satisfactory disaster risk management program in place (or under preparation), which the Bank will monitor periodicallyRisk RetentionContingent Emergency Response Components (CERC) World BankCERC is an arrangement within IDA projects that allow IDA funds to be quickly reallocated to emergency recovery activities in the event of a disaster. Inclusion of a CERC in IDA projects enables countries to use IDA funds without the need for time-consuming project restructuring. Up to 5% of un-disbursed IDA funds can be drawn upon through the CERC budget line. The inclusion of CERCs within World Bank projects is increasingly recommended for all IDA eligible countries. For example, Federated States of Micronesia, Marshall Islands, Samoa and Tonga have either used or have access to CERC financing arrangements.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.International Emergency FinancingRapid Credit Facility and Financing Instrument - (International Monetary Fund)The Rapid Credit Facility (RCF) provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex post conditionality where a full-fledged economic program is neither necessary nor feasible. The IMF’s Rapid Financing Instrument (RFI) provides rapid finance to all countries facing an urgent balance of payments need as the result of a financial crisis, disaster event, or other major sources of economic disruption.Risk RetentionNational Budgetary InstrumentsAvailable public funds as dedicated national funds to help improve national financial capacity to absorb the financial costs of climate change and disaster-related losses.
- Tuvalu
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.Risk RetentionThe Tuvalu Climate Change and Disaster Survival FundA nationally driven and nationally owned fund that provides a sustainable, predictable and accessible source of finance for Climate Change and Disaster Risk Management activitiesInternational Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.Risk RetentionNational Budgetary InstrumentsAvailable public funds as dedicated national funds to help improve national financial capacity to absorb the financial costs of climate change and disaster-related losses.
- Vanuatu
- Risk Instrument TypeInstrument TitleDescriptionLinkRisk TransferPacific Catastrophe Risk Insurance Company (PCRIC)PCRIC is a regionally focused captive insurance company owned by Pacific Island nations through the Pacific Catastrophe Risk Insurance Foundation (PCRIF), based in the Cook Islands. As a captive insurance company, the endeavours are directed entirely toward the disaster risk insurance requirements of Foundation member countries. Products are designed to meet specific needs identified by Pacific Island nations, and in times of crisis aim to deliver timely post-disaster liquidity to support rapid relief. In addition, PCRIC is able to facilitate technical assistance to help countries build resilience to disaster and climate risks and in this way help them sustain development gains.Risk RetentionAsian Development Bank- Contingency Disaster FundsADB's Contingent disaster financing (CDF) program will improve the resilience of the participating Pacific developing member countries (DMCs) to disasters triggered by natural hazards and health emergencies. It supports policy actions strengthening resilience to disasters and provides a source of financing for timely emergency response and early recovery. The program is the third phase of the Pacific Disaster Resilience Program; the first phase was approved in December 2017. ADB’s assistance comprises policy-based loans to the Cook Islands and Palau, and policy-based grants to the FSM, Kiribati, the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.Risk TransferPacific Insurance and Climate Adaptation Programme (PICAP)The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.International Emergency FinancingRapid Credit Facility - International Monetary Fundprovides concessional finance in the form of loans to low-income countries when urgent financial support is required. Though focused more on supporting macro-economic stability, this facility may also serve as a relevant source of support following a disaster event.Risk TransferMicro Insurance for Homes, Individuals, Families, Communities and Businesses - Fiji CAREFiji Care’s community-based insurance product offers a low cost bundled insurance inclusive of life insurance, medical coverage and fire protection.International Emergency FinancingCentral Emergency Response Fund (CERF) - United NationsThe CERF via the Rapid Response Window provides quickly disbursed grants to support three types of emergency situations: a) sudden onset emergencies b) the deterioration of an existing humanitarian situation c) time-critical interventions. In most cases, a maximum of USD30m can be applied for by UN organisations to support national responses.International Emergency FinancingHumanitarian Cash Programm - Pacific Regional Cash Working GroupCash and Voucher Assistance (CVA) continues to be an expanding modality for the delivery of humanitarian assistance in the Pacific region. The humanitarian partners have used CVA along with other modalities to support the lives of people affected by disasters due to Its role as an efficient, effective, and flexible mode of addressing the humanitarian needs during all stages of the disaster life cycle have enhanced, while strengthening livelihoods, markets, and local economy or long-terms sustainable results in a dignified way with the inclusion of gender and disabilities mainstreaming and targeted actions. Contributing also to the recovery, resilience, and peacebuilding agendas.International Emergency FinancingAsia Pacific Disaster Response Fund - ADBThe fund provides quick disbursing grants to assist DMCs meet immediate expenses to restore life-saving services to affected populations following a disaster and to augment aid provided by other donors in times of crisis.
