ICRM Research Focus
ASEAN, comprising its 10 ASEAN Member States (AMS), is one of the most economically dynamic regions in the world. However it is one of the most exposed regions to Natural Catastrophes (NatCat) as arising primarily from floods, typhoons (tropical cyclones), earthquakes and volcanoes. ASEAN has in recent years stepped up collective efforts towards regional NatCat disaster relief and risk mitigation with the ASEAN Disaster Risk Financing and Insurance (ADRFI) Roadmap developed in 2011. The ADRFI Phase 2 (ADRFI-2) Programme, as continuing from its Phase 1, has been established to implement the strategies outlined in the roadmap, which specifically support a holistic approach towards viable sovereign risk transfer solutions, and towards regional cooperation on disaster risk financing and risk transfer.
Under ADRFI-2, the Institute of Catastrophe Risk Management (ICRM) at the Nanyang Technological University (NTU) in Singapore and the ASEAN Secretariat have teamed up to execute a multi-year risk financing and reduction program in Aug 2019. This program aims to strengthen the financial resiliency of AMS when NatCat disasters strike, equipping AMS with risk management and risk transfer capabilities that will enable them to better manage the financial burdens caused by disasters. The ultimate goal is to elevate AMS’ capability in Disaster Risk Financing and Insurance (DRFI) to holistically account for the spectrum of risks affecting them, to quantitatively measure the risks, and based on that to develop appropriate risk management and risk transfer strategies.
ADRFI’s focus on the upstream activities supporting disaster risk financing will strengthen the ASEAN’s overall disaster risk management capabilities and lead to improved disaster risk resiliency. The ADRFI-2 programme is founded on three pillars, Risk Assessment, Risk Financing Advisory and Capacity Building with ICRM spearheading the first two pillars. ICRM is further developing an ADRFI-2 Web-based GIS Platform with its NatCat Hazard and Exposure databases and built-in analytics that that enable scenario testing and further supports ASEAN-wide efforts towards meeting their Risk Assessment and Risk Financing Advisory needs.