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Open Access
Article
Publication date: 24 March 2020

Robby Soetanto, Ferry Hermawan, Alistair Milne, Jati Utomo Dwi Hatmoko, Sholihin As'ad and Chusu He

Recent years saw a paradigm shift from ex post (reactive) to ex ante (proactive) approaches (e.g. insurance) to disaster risk financing for building resilience of communities in…

2793

Abstract

Purpose

Recent years saw a paradigm shift from ex post (reactive) to ex ante (proactive) approaches (e.g. insurance) to disaster risk financing for building resilience of communities in developing countries. To facilitate adoption, the approaches should be adapted so that they can be technically feasible and culturally desirable to the local context. This paper aims to report an exploratory study to elaborate the existing arrangements to deal with the impacts of disaster and the potential to shift to a more proactive disaster risk financing in Indonesia.

Design/methodology/approach

A series of stakeholder engagement activities in Semarang and Solo, Indonesia was conducted to ascertain the existing arrangements for disaster risk financing at local government level, the challenges/barriers to the adoption of insurance, education and policies to facilitate the transformation from reactive to proactive process. Thematic analysis was applied to transcribed conversations during interviews, focus groups and workshops. Identification of emerging issues/themes was also guided by the researchers’ notes during the events, and facilitated by qualitative analysis software, Atlas Ti®. This was complemented by an analysis of regulations and documents provided by the local stakeholders.

Findings

The local governments heavily rely on contingency fund, which is not enough and often significantly delayed to fund recovery and reconstruction of public infrastructure. The use of insurance is limited in both public and private sectors, particularly in the majority of low-income communities. Various barriers and challenges were identified under several categories, namely, institutional, cultural, affordability, lack of awareness and knowledge, insurance arrangement process and lack of trust. The findings also suggest that improving insurance education should involve multiple stakeholders, and both formal and informal routes should be pursued.

Originality/value

The research fills the gap of knowledge in disaster risk financing in the context of developing countries, specifically in local governments and communities in Indonesia. The findings may be replicable for other developing countries with low adoption of ex ante financial instruments for dealing with the impacts of disaster.

Details

International Journal of Disaster Resilience in the Built Environment, vol. 11 no. 3
Type: Research Article
ISSN: 1759-5908

Keywords

Abstract

Details

Coping with Disaster Risk Management in Northeast Asia: Economic and Financial Preparedness in China, Taiwan, Japan and South Korea
Type: Book
ISBN: 978-1-78743-093-8

Book part
Publication date: 12 November 2016

Qihao He

Due to climate change and an increasing concentration of the world’s population in vulnerable areas, how to manage catastrophe risk efficiently and cover disaster losses fairly is…

Abstract

Purpose

Due to climate change and an increasing concentration of the world’s population in vulnerable areas, how to manage catastrophe risk efficiently and cover disaster losses fairly is still a universal dilemma.

Methodology

This paper applies a law and economic approach.

Findings

China’s mechanism for managing catastrophic disaster risk is in many ways unique. It emphasizes government responsibilities and works well in many respects, especially in disaster emergency relief. Nonetheless, China’s mechanism which has the vestige of a centrally planned economy needs reform.

Practical Implications

I propose a catastrophe insurance market-enhancing framework which marries the merits of both the market and government to manage catastrophe risks. There are three pillars of the framework: (i) sustaining a strong and capable government; (ii) government enhancement of the market, neither supplanting nor retarding it; (iii) legalizing the relationship between government and market to prevent government from undermining well-functioning market operations. A catastrophe insurance market-enhancing framework may provide insights for developing catastrophe insurance in China and other transitional nations.

Originality

First, this paper analyzes China’s mechanism for managing catastrophic disaster risks and China’s approach which emphasizes government responsibilities will shed light on solving how to manage catastrophe risk efficiently and cover disaster losses fairly. Second, this paper starts a broader discussion about government stimulation of developing catastrophe insurance and this framework can stimulate attention to solve the universal dilemma.

Details

The Political Economy of Chinese Finance
Type: Book
ISBN: 978-1-78560-957-2

Keywords

Abstract

Details

Coping with Disaster Risk Management in Northeast Asia: Economic and Financial Preparedness in China, Taiwan, Japan and South Korea
Type: Book
ISBN: 978-1-78743-093-8

Content available
Book part
Publication date: 4 December 2018

Gregory Coutaz

Abstract

Details

Coping with Disaster Risk Management in Northeast Asia: Economic and Financial Preparedness in China, Taiwan, Japan and South Korea
Type: Book
ISBN: 978-1-78743-093-8

Book part
Publication date: 4 December 2018

Gregory Coutaz

Abstract

Details

Coping with Disaster Risk Management in Northeast Asia: Economic and Financial Preparedness in China, Taiwan, Japan and South Korea
Type: Book
ISBN: 978-1-78743-093-8

Book part
Publication date: 4 December 2018

Gregory Coutaz

Abstract

Details

Coping with Disaster Risk Management in Northeast Asia: Economic and Financial Preparedness in China, Taiwan, Japan and South Korea
Type: Book
ISBN: 978-1-78743-093-8

Article
Publication date: 17 October 2019

Massimo Migliorini, Jenny Sjåstad Hagen, Jadranka Mihaljević, Jaroslav Mysiak, Jean-Louis Rossi, Alexander Siegmund, Khachatur Meliksetian and Debarati Guha Sapir

The purpose of this paper is to discuss how, despite increasing data availability from a wide range of sources unlocks unprecedented opportunities for disaster risk reduction…

1201

Abstract

Purpose

The purpose of this paper is to discuss how, despite increasing data availability from a wide range of sources unlocks unprecedented opportunities for disaster risk reduction, data interoperability remains a challenge due to a number of barriers. As a first step to enhancing data interoperability for disaster risk reduction is to identify major barriers, this paper presents a case study on data interoperability in disaster risk reduction in Europe, linking current barriers to the regional initiative of the European Science and Technology Advisory Group.

Design/methodology/approach

In support of Priority 2 (“Strengthening disaster risk governance to manage disaster risk”) of the Sendai Framework and SDG17 (“Partnerships for the goals”), this paper presents a case study on barriers to data interoperability in Europe based on a series of reviews, surveys and interviews with National Sendai Focal Points and stakeholders in science and research, governmental agencies, non-governmental organizations and industry.

Findings

For a number of European countries, there remains a clear imbalance between long-term disaster risk reduction and short-term preparation and the dominant role of emergency relief, response and recovery, pointing to the potential of investments in ex ante measures with better inclusion and exploitation of data.

Originality/value

Modern society is facing a digital revolution. As highlighted by the International Council of Science and the Committee on Data for Science and Technology, digital technology offers profound opportunities for science to discover unsuspected patterns and relationships in nature and society, on scales from the molecular to the cosmic, from local health systems to global sustainability. It has created the potential for disciplines of science to synergize into a holistic understanding of the complex challenges currently confronting humanity; the Sustainable Development Goals are a direct reflectance of this. Interdisciplinary is obtained with integration of data across relevant disciplines. However, a barrier to realization and exploitation of this potential arises from the incompatible data standards and nomenclatures used in different disciplines. Although the problem has been addressed by several initiatives, the following challenge still remains: to make online data integration a routine.

Details

Disaster Prevention and Management: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 0965-3562

Keywords

Abstract

Details

Responsible Investment Around the World: Finance after the Great Reset
Type: Book
ISBN: 978-1-80382-851-0

Article
Publication date: 1 March 2010

Christine Wamsler

This paper analyses how disaster risk management paradigms have gradually developed since the 1960s, shaped by practical experience of-and the debate about-the rising number of…

Abstract

This paper analyses how disaster risk management paradigms have gradually developed since the 1960s, shaped by practical experience of-and the debate about-the rising number of disasters, growing urbanization, and changing climatic conditions. In this context, climate change is shown as driving an urban pro-poor adaptation agenda, which could allow current shortcomings in urban risk reduction to be overcome. However, as past lessons in disaster risk management are rarely considered, any potential for improvement remains untapped. Possible ways of rectifying this situation are discussed, and a comprehensive framework for the reduction of both disaster and climate risks is presented.

Details

Open House International, vol. 35 no. 1
Type: Research Article
ISSN: 0168-2601

Keywords

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