WB to fund Asean disaster insurance facility

The World Bank (WB) will finance the regional insurance facility aimed at providing immediate financial response when calamities strike in disaster-prone countries like the Philippines.

World Bank documents showed it would be extending investment project financing worth $12 million to the Southeast Asia Disaster Risk Insurance Facility (Seasdrif).

This World Bank financing is up for approval by the Washington-based multilateral lender’s board on Aug. 10.

“The project development objective is to improve access to pre-arranged financing through market-based mechanisms for responding to disasters in Southeast Asian countries,” the World Bank said.

The World Bank noted that “larger-sized and disaster-prone economies such as Indonesia, the Philippines and Vietnam face potential funding gaps for more severe but less frequent events (such as those occurring once every 10 years or less frequently), and oftentimes for longer-term recovery and reconstruction.”

Finance Undersecretary Mark Dennis Y.C. Joven confirmed to the Inquirer that the Philippines was already a party to Seadrif.

In May last year, Finance Secretary Carlos G. Dominguez III, on behalf of the Philippine government, and Japanese Deputy Prime Minister and Finance Minister Taro Aso, together with officials of other Asean member-states, signed in Tokyo the memorandum of understanding to establish Seadrif.

The Seadrif Trustee and Seadrif Insurance Co. will implement the project on behalf of Cambodia, Indonesia, Laos, Myanmar, Japan, the Philippines and Singapore.

“The project is to transfer $12 million from the World Bank-administered multidonor trust fund (MDTF) to the Trustee to capitalize and operationalize Seadrif Insurance Co. The World Bank was requested by the countries to act as the lead technical partner to advise Seadrif governing bodies and implementing agencies (Seadrif Trustee and Seadrif Insurance Co.) on various matters. The technical assistance under the Seadrif MDTF will help Asean beneficiary-countries starting with Laos and Myanmar develop contingency plans that will strengthen their existing system and process for the use of insurance proceeds,” the World Bank said.