ADB: Closer cooperation needed to counter shifting global, Asian landscapes

As well as closer forms of economic cooperation, the region urgently needs to improve its insurance and other disaster risk financing to address the high human and economic toll of floods, droughts, and other increasingly common natural disasters that have cross-border impacts.

Asia and the Pacific is more vulnerable to natural hazards than any other region in the world, with financial costs alone totaling about $53 billion annually over the last 20 years. However, in 2013 only 7.6% of those economic losses were insured, so costs are threatening to outstrip governments’ ability to finance recovery. Long-term damage to infrastructure, businesses, farms, and homes can push many back into poverty.

Key priorities for developing disaster risk financing markets and strengthening financial resilience include business continuity planning, enhanced technical and institutional capabilities, and better coordination among public authorities.