Assessing financial protection against disasters: A guidance note on conducting a disaster risk finance diagnostic

This guidance note aims to help development practitioners gather relevant information, conduct analysis, and present both in a standardized disaster risk finance diagnostic framework. In addition to the guidance note itself, this document comprises a questionnaire to help practitioners gather key information for a diagnostic (annex I) and a suggested outline for a country diagnostic (annex II). The overall framework that underlies the proposed diagnostics is widely applicable, as are the questions practitioners should seek to answer at the beginning of an engagement on disaster risk finance.

This guidance note treats five main areas: impact of past disasters (section A); current approach to disaster risk finance (section B); domestic insurance and capital markets review (section C); funding gap analysis (section D); and summary and options for consideration (section E). The findings of this guidance note can feed into developing disaster risk finance strategies, which set out policy priorities aimed at meeting post-disaster financing needs.