International discord hindering ability to tackle global risks: WEF

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Deteriorating international relations are hindering the world’s ability to foster collective action and tackle the most serious global risks, according to the World Economic Forum (WEF).

The Forum’s Global Risks Report 2019 said that international cooperation looks set to worsen further over the coming year, with experts identifying rising geopolitical and geo-economic tensions as the most urgent risks in 2019.

The WEF also highlighted environmental degradation as the most pressing long-term global risk and cyber threats as among the most significant potential blind spots.

World Bank to double climate adaptation & resilience financing

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The World Bank Group will double its financing of climate change adaptation and resilience related projects, with one area of focus being the delivery and facilitation of financial protection instruments that can help countries respond early to, and recover faster from, climate and disaster shocks.

Under the new Action Plan on Climate Change Adaptation and Resilience, the World Bank aims to increase its direct financing of climate change adaptation and resilience to $50 billion over fiscal years 21–25.

Averaging $10 billion a year, this is more than double the level of financing ploughed into climate related initiatives by the Bank in FY15-18.

African Risk Capacity (ARC) Agency and African Development Bank (AFDB) increase accessibility to Climate Risk insurance for Africa

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Through partnership and innovative financing, ARC and AfDB are tackling one of the biggest challenges in closing the protection gap in Africa: premium financing.

In January 2017, the ARC and AfDB partnered to improve disaster risk financing infrastructure, capacities, and policies across the continent by harnessing the financial expertise, in-country reach, and dedication to building a climate resilient Africa of both institutions

On 26 October 2018, AfDB approved the Africa Disaster Risk Financing Programme (ADRiFi), an initiative that will assist African governments in overcoming one of the largest impediments in fully benefitting from ARC’s risk management tools: premium financing.

ASEAN countries to establish disaster risk insurance facility

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A number of countries belonging to the Association of Southeast Asian Nations (ASEAN) have signed a Memorandum of Understanding for the establishment of the region’s first disaster risk financing facility.

The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) will initially comprise a trust and an insurance company in Singapore, working in partnership and with technical support from the World Bank.

It will also provide a catastrophe risk insurance pool for ASEAN+3 countries, which include the Southeast Asian nations plus China, Japan and the Republic of Korea.

Nephila, AP3 & reinsurers back upsized Philippines parametric renewal

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Insurance-linked securities (ILS) investment fund manager Nephila Capital and Swedish state sector pension fund AP3 have both backed a near $390 million renewal for the Philippines regional parametric disaster insurance program.

The so-called Parametric Insurance Policy provides insurance protection for disasters across 25 provinces on the Philippine eastern seaboard, with a particular focus on protection national and local government assets against disaster and severe weather impacts, including Department of Education such as public elementary and high schools.

This appears to be a renewal of this arrangement that provided the reinsurance to back the parametric insurance scheme, although the last transaction was a $206 million catastrophe swap arrangement.

Bahamas gets contingent disaster loan with parametric triggers from IDB

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The islands of the Bahamas are to benefit from a $100 million contingent loan arrangement from the Inter-American Development Bank (IDB), which will provide a source of liquidity after natural disasters and feature parametric triggers to activate loan disbursements.

The use of contingent financing for recovery, rebuilding and financing response to natural disasters is not new, the World Bank has been a regular provider of its contingent Catastrophe Deferred Drawdown Option (Cat DDO) loans and the updated Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT-DDO 2) arrangements in recent years.

But these CAT DDO contingent financing arrangements are typically triggered based on the sovereign government declaring that a disaster situation has occurred.

Hong Kong’s ILS work continues, targets 2019-20 legislative session

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Hong Kong continues to work towards establishing a local market for insurance-linked securities (ILS), with the regulator and government working together to develop the necessary legislation to support ILS vehicle domiciling and transactions, with a target to get it into the 2019-20 legislative session.

In a speech at the Asian Insurance Forum yesterday, Financial Secretary Paul Chan said that Hong Kong continues to see the development of a local ILS market as beneficial.

As we explained more than a month ago, Hong Kong has begun work to create the necessary legislative environment to support insurance-linked securities (ILS) business.

The Special Administrative Region of China sees itself as an ideal location for a conduit between local and regional insurance and reinsurance firms and the capital markets.

ADB Plans Over $300 Million to Support Tajikistan’s Development in 2019–2021

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DUSHANBE, TAJIKISTAN (4 December 2018) — The Asian Development Bank’s (ADB) updated 2019–2021 country program for Tajikistan focuses on supporting road and energy development, private sector development, education and healthcare improvement, food security, and municipal infrastructure.

The indicative financial assistance for the 3-year Country Operations Business Plan (COBP) released recently is over $300 million, all in grants. The final amount will, however, depend on the country’s performance and availability of ADB funds.

АБР планирует предоставить свыше $300 миллионов для поддержки развития Таджикистана в 2019-2021 годах

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ДУШАНБЕ, ТАДЖИКИСТАН (4 декабря 2018) — Обновленная программа Азиатского банка развития (АБР) в Таджикистане на 2019-2021 годы направлена на поддержку развития автомобильных дорог и энергетики, частного сектора, образования, здравоохранения, продовольственной безопасности и муниципальной инфраструктуры.

Индикативная финансовая помощь в рамках 3-годичного операционного бизнес плана, одобренного недавно, составляет свыше 300 миллионов долларов США, все на грантовой основе. Однако окончательный размер будет зависеть от достижений страны и наличия средств АБР.

АБР поддерживает усилия Кыргызской Республики по борьбе с изменением климата

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Бишкек, Кыргызская Республика (28 ноября 2018 года) — Азиатский банк развития (АБР) утвердил 38,6 млн. долл. США для финансирования модернизации ирригационных систем, повышения сельскохозяйственного производства и улучшения землепользования, укрепления управления рисками стихийных бедствий и улучшения сбора и анализа соответствующих данных в Кыргызской Республике.

Этот проект, включающий кредит в размере 21,8 млн. долл. США и грант в размере 16,8 млн. долл. США из Азиатского фонда развития АБР, сосредоточится на Ферганской долине в юго-западной части страны и бассейне реки Чу на севере, которые уязвимы к наводнениям, селям и засухам, что усугубляется изменением климата. Софинансирование Правительства Кыргызской Республики составит 5 млн. долл. США.