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Posted by
Olivier Mahul, 22 April 2024
The global protection gap related to climate shocks and disasters keeps growing. According to the insurance industry , this protection gap worldwide is estimated at 67 percent in 2023: this means that only 33 percent of the direct economic costs of natural hazards, estimated at USD357 billion in 2023, were insured. This protection gap is even wider in emerging markets and developing economies, where it can exceed 90 percent. Climate shocks and extreme weather events not only reduce the welfare... Keep reading
Posted by
Olivier Mahul, 19 October 2023
Last month, we were privileged to participate in the Symposium for Index and Disaster Risk Financing for Francophone Africa in Dakar . This crucial convening for the region was fueled by the presence of over 100 delegates. These representatives gathered with a common purpose - to exchange innovative ideas and insights on resilience and collaborative efforts . It was a space where experiences, challenges, and solutions were shared, sowing seeds for a future where disaster risk financing is... Keep reading
Posted by
Olivier Mahul, 06 September 2023
Last June, we had the opportunity to attend a workshop in London, UK, to learn how the De-risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE) project has mobilized private sector capital through insurance markets to protect over one million pastoralists against drought. All by its first birthday! The project is supported by World Bank's International Development Association (IDA), alongside some matching grants from the Global Shield Financing Facility (... Keep reading
Posted by
Olivier Mahul, 22 December 2021
The ongoing policy discussions about climate change resilience and the role of prevention and insurance, including the recent blog by Matthew Kahn and Somik Lall, reminded me of the 1985 science fiction movie “Back to the Future,” where a teenager is accidentally sent three decades back in a time-traveling automobile built by his eccentric scientist friend “Doc” Brown . It may be indeed worthwhile to go back to the future and return to the foundations of the economics of risk and insurance... Keep reading
Posted by
Olivier Mahul, 28 October 2021
Natural disasters cost about US$18 billion a year in emerging markets and developing economies through damage to power generation and transport infrastructure alone. They also trigger wider disruptions for households and firms costing at least US$390 billion a year ( World Bank, 2019 ). Ensuring reliable, sustainable, and resilient critical infrastructure is a core part of national economic security and climate change adaptation and resilience . Governments should secure the continuity of... Keep reading
Posted by
Olivier Mahul, 15 June 2021
The COVID-19 pandemic has dealt with the most severe blow to the global economy since 1929, with devastating, long-lasting effects on government balance sheets. While the impact of the pandemic has been unprecedented in scale and type, the systemic crises stemming from it are likely to happen more often in our modern, interconnected world. COVID-19 reminds us that shocks can cascade and compound in complex ways, with broad fiscal, economic, financial and social implications. Understanding this... Keep reading