The Future of Disaster Risk Pooling for Developing Countries: Where Do We Go From Here?

Developing countries require greater access to finance to respond quickly and effectively to disasters. Multiple tools are available to enable this, including national disaster funds, contingent credit lines, and parametric insurance products. This paper analyzes how a portion of the current disaster risk finance architecture is serving developing countries. We focus on the three regional risk pools— CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) (referred to throughout as “CCRIF”); African Risk Capacity (ARC); and Pacific Catastrophe Risk Insurance Company (PCRIC)—that offer parametric disaster insurance to developing countries.