1. World Bank Group 1 Catastrophic Risk Financing World Bank’s Initiatives EXPERT MEETING ON REQUIREMENTS OF THE CATASTROPHE INSURANCE AND WEATHER RISK MANAGEMENT MARKETS FOR NATIONAL METEOROLOGICAL AND HYDROLOGICAL SERVICES 5-7 December 2007, WMO Headquarters, Geneva, Switzerland Eugene Gurenko Lead Insurance Specialist Olivier Mahul Program Manager, Insurance for the Poor

2. World Bank Group 2 Strengths of the World Bank for natural disaster risk management n It is the only multilateral organization with the world-class knowledge in-house already installed in natural risk management. n The World Bank has: t Insurance expertise t Treasury expertise (as investment bank for countries) t Risk management expertise t Lowest cost of borrowing in the world t Knowledge of the risk map globally and individually for each country t Contacts in each country t Convening power t Reputation

3. World Bank Group 3 Alphabet Soup n CCRIF n GFDRR n GIRIF n Cat DDO n GCMB n WB CRIWG

4. World Bank Group 4 Caribbean Catastrophe Risk Insurance Facility Reserves Reinsurance/ART (Purchased on international financial markets) Country 2 Country 3 Country 1 Country 4 Country 5 Country 6 Country 7 Premium Payout Insurance Payout Insurance Premium Initial donor contribution Growth

5. World Bank Group 5 Global Facility for Disaster Risk Reduction n Track II t Operates as a multi-donor trust fund t Provides technical assistance to assist low- and middle- income countries to mainstream disaster risk reduction t Key deliverables include ex ante disaster risk financing n Some GFDRR-funded projects t Parametric flood insurance for agriculture in Vietnam t Weather based crop insurance in India t Parametric flood insurance in Bangladesh t Central American catastrophe insurance pool t Pacific Catastrophic Risk Pool t Etc.

6. World Bank Group 6 Global Index Reinsurance Facility n Objectives t Provide parametric (re)insurance solutions in ACP countries n EU Trust Fund t Technical assistance t Premium subsidies n Index Re t Specialized insurance company capitalized by IFC, a reinsurance Company, etc.

7. World Bank Group 7 Disaster Risk Management Loan for IBRD Eligible Borrowers (Cat DDO) n Disaster Risk Management Loan for IBRD Eligible Borrowers n Assurance of automatic drawdown upon an occurrence of disaster –Immediate disbursement after the occurrence of a disaster –Certainty of disbursement –Flexible use of funds (a budget support instrument) n Affordable pricing n Long drawdown period n The Bank’s assistance in establishing effective disaster risk management program

8. World Bank Group 8 Global Catastrophe Mutual Bond

9. World Bank Group 9 World Bank Catastrophic Risk Insurance Working Group n Established in October 2007 n Coordinates the WB initiatives on catastrophic risk financing n Inform/collaborate with outside partners on WB cat risk financing initiatives