A new set of indicators published by the Inter-American Development Bank (IDB) show that while some progress in disaster risk management has been made in Latin America and the Caribbean more needs to be done to reduce risks and prepare government finances to respond to natural catastrophes.
The new edition of Indicators of Disaster Risk and Risk Management details the potential economic losses of a group of 17 countries in the region and evaluates how effectively governments are managing those risks of natural disaster. This provides a good insight into the region for insurers and reinsurers and can help to highlight where there are gaps which can be filled by private insurance (particularly microinsurance products).
The indicators highlight the growing need for more than just government support in this region. With the increasing development and modernisation of these countries the potential for high economic losses rises and governments alone cannot cope with the extreme scenarios.
A summary document of the results of this research can be downloaded here.
Read more in this press release from the IDB.