The importance of forming a sustainable Disaster management and risk transfer strategy cannot be emphasised enough. All stakeholders - Government, Private entities and Insurance sector have to come together to find a suitable solution. Indian government has done good work on disaster management in terms of minimising humanitarian losses, but there is a need to put a cohesive risk transfer strategy that can help faster rebuilding of nation and livelihood protection of the vulnerable sector in the face of increasing trend of NATCAT events.
Last week Munich Re has published its Half-Year NatCat Report 2023 which also shed some light on Cyclone Freddy. This cyclone did not get much media attention although having been the longest active tropical cyclone since records began. It formed at the start of February to the north of Australia and then traversed the entire Indian Ocean. After making landfall in Madagascar, it meandered back and forth between Madagascar and Mozambique. Some 860 people lost their lives. Overall losses in Mozambique and neighbouring countries came to approximately US$1.5bn. Due to the very low insurance penetration in low-income countries, however, only a negligible portion of the losses was insured. Insurance Development Forum #ClimateChange #NatCat #Insurance #Resilience