Study praises public private partnerships in managing catastrophes

REINSURER Swiss Re has issued a study that praises how several public-private partnerships – such as the Caribbean Catastrophe Risk Insurance Facility – deal with natural catastrophes. The reinsurer noted public-private partnership solutions could “substantially ease the financial burden natural disasters put on government budgets”. Swiss Re’s chairman of Global Partnerships, Michel Liès, said disaster risk management had previously been focused on post-event relief, but a more balanced approach was preferable. Swiss Re would like governments to build up reserves, as well as creating contingent finance and sovereign insurance solutions. “Post-disaster financing of relief, rehabilitation and reconstruction through budgetary means, debt financing or donor aid should only come into play to cover residual losses once all other risk transfer solutions have been exhausted”, wrote Swiss Re.