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Sovereign disaster risk financing (English)

Natural disasters slow long-term development and lead to increased poverty in developing countries. Sovereign disaster risk financing increases the financial response capacity of governments of developing countries in the aftermath of natural disasters, while protecting their long-term fiscal balances. Governments are usually better served by retaining most of their natural disaster risk while using risk transfer mechanisms to manage the excess volatility of their budgets or to access immediate liquidity after a disaster.

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Citation

Sovereign disaster risk financing (English). Disaster risk financing and insurance case study Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/110301467986308047/Sovereign-disaster-risk-financing