Global experts share experiences in disaster insurance
At a workshop co-hosted by the United Nations Development Programme (UNDP) and the Vietnamese Ministry of Finance’s National Institute for Finance in Hanoi on November 14, global experts shared invaluable experience in developing financial and insurance strategies, aimed at fortifying Vietnam's resilience to natural disasters.
Patrick Haverman, UNDP Deputy Resident Representative in Vietnam, underscored the critical role of effective financial and insurance strategies in mitigating the impacts of natural disasters and expediting recovery efforts.
Dr. Nguyen Thi Hai Duong from the National Economics University noted that Vietnam could adopt index-based insurance models and layered risk insurance to deliver quicker, more efficient financial support. Public-private partnerships and assistance from international organisations would be essential to advance disaster insurance in Vietnam.
Delegates shared insights from Japan, the Philippines, Colombia and the Caribbean, highlighting the need for robust legal frameworks for disaster risk financing and insurance, and existing risk transfer tools. Their recommendations were clear and actionable: refine the regulatory framework, enhance forecasting capabilities, and expand financial initiatives such as disaster risk insurance and proactive response mechanisms.
The current state of disaster insurance in Vietnam was thoroughly examined, revealing pilot experiences and identifying key challenges, particularly concerning public assets.
With annual GDP losses due to natural disasters estimated at 1-1.5%, Vietnam is among the most vulnerable nations globally. The World Bank warned that without effective prevention and insurance strategies, Vietnam could face economic losses of up to US$67 billion over the next five decades.
