[Launch of Policy Note] Mobilizing Public-Private Solutions to Manage the Financial Impacts of Natural Hazards in Emerging Markets and Developing Economies
On March 17, 2025, Italy’s Ministry of Economy and Finance and the World Bank Group (WBG) co-hosted the launch of the policy note “Mobilizing Public-Private Solutions to Manage the Financial Impacts of Natural Hazards in Emerging Market and Developing Economies,” in Rome. The event was a follow-up to the in-depth discussions on disaster risk finance (DRF) promoted by the Italian G7 Presidency over the course of 2024. Recognizing the importance to take this agenda forward and support emerging economies in addressing protection gaps, in their October 2024 communiqué, G7 Finance Ministers and Central Bank Governors encouraged the WBG to “develop a comprehensive and context-sensitive strategy to mobilize public-private solutions for disaster-risk mitigation” in emerging market and developing economies (EMDEs). The event brought together government representatives, insurers, development partners, and technical experts to discuss the findings of the policy paper and chart next steps. Download the policy note here.
Shifting from Response to Readiness
Opening remarks were delivered by Riccardo Barbieri Hermitte (Director General of the Treasury, Ministry of Economy and Finance, Italy) and Jean Pesme (Global Director for Finance, WBG). Riccardo highlighted the importance of investing in financial preparedness to reduce reliance on post-disaster humanitarian aid and shared Italy’s experience with public-private partnerships to distribute risk. Jean emphasized the urgency of scaling DRF in light of escalating losses—over $350 billion in 2024 alone—and called for greater coordination between the public and private sectors to close the protection gap, particularly for women, MSMEs, and the most vulnerable communities.
Vukile Davidson (Chief Director, Financial Markets and Stability, National Treasury of South Africa), speaking on behalf of South Africa’s G20 Presidency, emphasized the growing need for financial innovation in disaster preparedness. He highlighted South Africa’s experience in using sovereign risk financing instruments and underscored the value of structured public-private partnerships to enhance financial inclusion and make disaster insurance more accessible to at-risk communities.
Presentation of the Policy Paper: A Framework for Joint Action
The policy paper was presented by one of its co-authors, Bianca Adam (Senior Financial Sector Specialist, World Bank Group). She outlined the need for a risk-layered approach that combines reserves, contingent credit, and insurance to ensure timely and cost-effective disaster response. The presentation emphasized aligning regulatory frameworks, improving affordability, and mobilizing capital to expand inclusive insurance markets in EMDEs. Case studies illustrated practical applications of the framework, and the role of development finance institutions in supporting scalable solutions was highlighted. Download the presentation here.
Panel 1: DRF Instruments and Strategies to Reduce the Protection Gap and Enhance Resilience – The Public Authorities’ and Insurers’ Perspective
Speakers: Hanne Van Voorden (Head of Supervisory Practices and Operations, International Association of Insurance Supervisors), Timothy Bishop (Senior Advisor, Directorate for Enterprise and Financial Affairs, Organisation for Economic Co-operation and Development ), and Leonardo Meoli (Group Head of Sustainability Business Integration, Generali), Daniel Clarke (Executive Director, Centre for Disaster Protection), and Ekhosuehi Iyahen (Secretary General, Insurance Development Forum).
This panel explored how DRF instruments can be effectively used to close the protection gap and build resilience. A central theme was the need for enabling regulatory environments that support innovation in disaster insurance, such as risk-based capital requirements and flexible supervisory approaches. Speakers stressed the importance of embedding DRF into broader national strategies and climate adaptation plans, highlighting the value of combining different financial instruments—like parametric insurance, catastrophe bonds, and sovereign risk pools—for timely and efficient disaster response. The discussion also focused on the challenges insurers face in pricing disaster risk and the limited penetration of insurance markets in many vulnerable regions. Panelists called for greater public-private collaboration, improved risk data, and targeted public subsidies or blended finance solutions to expand access, particularly for low-income and underserved populations.
Panel 2: Fostering Public-Private Insurance Programmes in EMDEs – Learning from National Experiences
Speakers: Abdeljalil El Hafre (Division Chief for Insurance and Social Protection, Morocco), Emine Feray Sezgin (Chairperson, Ministry of Treasury and Finance, Turkey), Donalyn Minimo (Assistant Secretary, Department of Finance, Philippines), David Maslo (Chief Risk Management Officer, Caribbean Catastrophe Risk Insurance Facility [CCRIF]), and Miguel Solana (Regional & Technical Lead, Senior Advisor on Insurance and Risk Finance, United Nations Development Programme).
This panel highlighted practical country experiences in designing and implementing public-private disaster insurance programs. The models discussed showcased how governments and insurers can jointly manage disaster risk through mandatory insurance schemes, solidarity funds, and risk pooling arrangements. Presenters from Morocco, Turkey, and the Philippines described the evolution of their programs, emphasizing the importance of sustainability, adaptability, and integration with broader fiscal and climate resilience frameworks. The conversation also touched on challenges such as funding constraints, limited awareness, and regulatory barriers. Regional risk pools were highlighted as being effective not only in ensuring quick payouts, but also through their contributions to data modeling, technical assistance, and capacity building. The panel concluded with reflections on the importance of inclusive insurance markets and the role of development partners in supporting national systems that improve financial protection for vulnerable communities.
Closing Reflections: Advancing a Shared Agenda
Francesca Utili (Director General for International Financial Relations, Department of the Treasury, Italy) closed the event with key takeaways:
Financial resilience is an essential element of disaster preparedness: “Pay with money, not with lives.”
Financial literacy and inclusion are critical to ensure DRF reaches the most vulnerable.
DRF must align with national development and climate strategies.
International collaboration is essential to strengthening disaster finance.
Knowledge-sharing platforms and multistakeholder partnerships are key to scaling solutions.
Download the Policy Note and Presentation.