The Role of the Public Sector

as Enabler of Sustainable
Risk Transfer Solutions in SEA
Philipp Servatius, Swiss Re Public Sector Solutions APAC
The natural disaster protection gap

Public physical assets

Emergency response

Foregone revenue

Uninsured private assets

Livelihood assistance,
rehabilitation of the poor

No country can fully insulate itself against extreme natural disasters, despite prevention and
mitigation efforts

Individuals, corporations and governments – both on national and sub-national level – bear the
brunt of economic losses from natural disasters

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How to close the protection gap
There is much more than just risk transfer

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3
2 Adaptation
Prevention &
mitigation How can we
1 Assessment manage the
How can we residual risk?
Identification Can we minimize it?
quantify it?
What risks
• Improve • Change
do we face? behavior
• Frequency quality
•Systematic • Severity • Build new • Pre-finance
•Cross- protection • Risk transfer
sectoral

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 The protection gap dissected
Uncovered risks fall in different spheres of responsibility…

Who carries
Which risk? the risk? Risk transfer solution

Public physical
assets Macro
Risk transfer solutions
Governments for (sub)sovereigns to cover
Protection gap

Emergency
their direct or indirect costs
response costs
gap
Foregone revenue
Businesses, Pooling
Uninsured private homeowners, Insurance schemes and pools
assets farmers to increase insurance penetration

Livelihood
Micro
Simplified products distributed
assistance Individuals via aggregators such as
MFIs, NGOs, and corporates

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 The protection gap dissected
…but often the government is the last resort

Who carries
Which risk? the risk? Risk transfer solution

Public physical
assets Macro
Risk transfer solutions
Governments for (sub)sovereigns to cover
Protection gap

Emergency
their direct or indirect costs
response costs
gap
Foregone revenue
Businesses, Pooling
Uninsured private homeowners, Insurance schemes and pools
assets farmers to increase insurance penetration

Livelihood
Micro
Simplified products distributed
assistance Individuals via aggregators such as
MFIs, NGOs, and corporates

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A robust risk (transfer) ecosystem
Government actions to improve conditions for sustainable risk transfer

Disaster risk
Regulation Insurance market
management
• Comprehensive • Identify &
& adaptable • Open analyze risks
framework
• Consistent & • Competitive • Mitigate where
forward-looking economical
regulator
• Innovative
• Enforceability • Raise
awareness

Access

Understanding Constituents Trust

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 The protection gap dissected
Selected public sector actions to support risk transfer more directly

Who carries
Which risk? the risk? Risk transfer solution

Public physical
assets Macro
Risk transfer solutions
Governments for (sub)sovereigns to cover
Protection gap

Emergency
their direct or indirect costs
response costs
gap
Foregone revenue
Businesses, Pooling
Uninsured private homeowners, Insurance schemes and pools
assets farmers to increase insurance penetration

Livelihood
Micro
Simplified products distributed
assistance Individuals via aggregators such as
MFIs, NGOs, and corporates

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