Gov't designing disaster risk financing strategy
The government is designing a country-specific catastrophe risk financing strategy to pay for the cost of recovery from natural disasters.
The Ministry of Finance says it has prepared a report which proposes potential considerations for the formulation of the strategy.
The Ministry says this has been done with support from the World Bank’s Disaster Risk Financing Technical Assistance Programme.
Finance Minister Audley Shaw says the strategy will be based on assessments of Jamaica’s legislative, financial management, and fiscal and insurance market environments.
The resulting recommendations will enable Jamaica to access between US$152 million and US$313 million for post-disaster funding to immediately commence long-term reconstruction.
The 2017-18 Fiscal Policy Papper suggests that the combination of reserves, emergency financing from the Catastrophe Deferred Drawdown Option, and parametric insurance would offer a cost-effective strategy.
It further notes that coverage could be even more effective with the addition of indemnity insurance for public assets.