Fiji : Disaster Risk Financing and Insurance
This note aims to build understanding of the existing disaster risk financing and insurance (DRFI) tools in use in Fiji and to identify gaps where potential engagement could further develop financial resilience. In addition the note aims to encoura...
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| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/02/24157492/fiji-country-note-disaster-risk-financing-insurance http://hdl.handle.net/10986/21696 |
| Summary: | This note aims to build understanding of
the existing disaster risk financing and insurance (DRFI)
tools in use in Fiji and to identify gaps where potential
engagement could further develop financial resilience. In
addition the note aims to encourage peer exchange of
regional knowledge, specifically by encouraging dialogue on
past experiences, lessons learned, optimal use of these
financial tools, and the effect they may have on the
execution of post-disaster funds. In 2012 alone Fiji
experienced three major events with estimated total damage
of F$146 million (US$78 million). Fiji is expected to incur,
on average over the long term, annual losses of F$158
million (US$85 million) due to earthquakes and tropical
cyclones. In the next 50 years Fiji has a 50 percent chance
of experiencing a loss exceeding F$1,500 million (US$806
million). The country has a taken a proactive approach to
DRFI and developed a finance manual for post-disaster budget
execution. The government now has F$3 million (US$1.6
million) available in DRFI instruments to facilitate
disaster response and also implemented tax concessions to
encourage donations in the wake of tropical cyclone Evan. A
number of options to support ongoing DRFI improvements in
Fiji are presented for consideration: (a) the finance manual
developed by the Ministry of Finance for post-disaster
procedures should be finalized, and cabinet approval should
be sought; (b) an overarching disaster risk financing and
insurance strategy should be developed that includes options
for risk transfer; and (c) assets should be identified in
order to develop an insurance program for critical public assets. |
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