Assessing Financial Protection against Disasters: A Guidance Note on Conducting a Disaster Risk Finance Diagnostic

Abstract

The purpose of this note is to help development practitioners gather relevant information, conduct analysis, and present both in a standardized diagnostic framework. Such a diagnostic serves three purposes: (i) it allows governments to assess their level of financial protection against disasters and gives them an overview of current policies and mechanisms for financial protection; (ii) it serves as the foundation for identifying specific gaps and setting policy priorities for implementing reforms and introducing new financial instruments to strengthen financial resilience; and (iii) it provides the basis for new or deepened engagements on disaster risk finance by international partners, as part of the broader disaster risk management (DRM) and/or public financial management dialogue. The findings of the diagnostic can feed into the development of disaster risk finance strategies, which set out policy priorities aimed at meeting post-disaster financing needs in a strategic way.