The microsite is developed and optimized for users on desktop, tablet and mobile devices
Please view with Microsoft Edge, Google Chrome or Firefox

Improving financing and decision
making under drought risk.

Introducing the NextGen Drought
Index (NGDI) Dashboard

↓
Scroll down or click arrows to learn more
↓

Why Strengthen Drought Risk Monitoring

The number of people affected by food insecurity is on the rise, compounded by the effects of climate change and conflict. The most vulnerable communities are hit hardest by climate shocks such as droughts. This makes drought risk monitoring more important than ever to help diminish the threat to food security.

Robust Drought Models for Reliable Action

There is growing evidence that the impact of extreme weather events can be mitigated via disaster risk financing and anticipatory action. Drought risk indicators support more timely financial response and can be computed months before the actual harvest.

More reliable risk models improve the speed of response during extreme events, resulting in:

Why Drought Risk Financing Is Important

Access to financial services, including insurance, is critical for vulnerable households and SMEs. Advanced drought risk analytics and tailored risk financing mechanisms can ensure money can flow where and when it is needed, whilst de-risking investment.

The Main Elementsof Advanced Drought Risk Financing

Spearheaded by the World Bank's Disaster Risk Financing and Insurance Program (DRFIP), the NextGen Dashboard provides access to the latest and most reliable drought risk information in a fully integrated manner. By offering operational, pre-processed satellite data, it provides decision-makers and technical clients with state-of-the-art information on drought risk for targeted financing.

Comprehensive Earth Observation and Hazard Data

Global network of satellites provides continuous coverage of drought characteristics, such as weather, vegetation and soil moisture conditions.

Vulnerability Data

Collaborative development process to link hazard and vulnerability.

Impact and Financial Risk

Currently, the dashboard is using food insecurity estimates and reported drought years to characterize drought impacts. Upcoming versions will include advanced risk analysis and a full risk modeling module.

The NextGen Dashboard and related projects provide more reliable drought risk information

In the face of climate change, data on past drought characteristics are often only a partial indication of potential future events. Understanding climate trends and patterns is vital to reduce uncertainties. A series of related projects have already been completed. Their diagnostics, findings, and methods, such as risk modeling, will gradually be implemented into future versions of the dashboard.

Allowing more accurate estimations of drought, in turn, allows more impactful and timely action.

NGDI is unique in several ways.

Through a combination of unique expertise, satellite technology and a simplified design processes, it aims to provide access to the latest and most reliable drought risk information. The NGDI relies on:

I
Clients generate their own drought risk indicators from a wide selection of pre-processed models and data sets.
II
The NGDI platform does not assume a "best" dataset or index to monitor drought. Instead, it offers a wide range of variables to be combined into higher-performance drought indicators.
III
Users benefit from more accurate estimations of drought risk and in turn, more impactful insurance applications, anticipatory action and early response finance.

Increasing both transparency and accountability is key when it comes to the development of drought risk financing tools. The NextGen dashboard enables the development of more reliable financial response products that trigger where and when needed. It can be applied in environments where drought is a leading or a contributing root cause for severe socioeconomic impacts, such as food insecurity.

Try the NextGen Dashboard at
http://ngdi.financialprotectionforum.org/

The NextGen Dashboard makes complex risk data analytics more accessible and transparent, enabling stakeholders to understand, design, and operate risk finance programs more effectively.

NGDI is being developed in collaboration with leading scientific, financial, and development institutions.

Upcoming Developments

The NextGen Dashboard is not just a project. It represents a series of ongoing developments aiming to reduce basis risk and increase national risk ownership. The next phases of development are already in planning, aiming to strengthen various components of the NextGen Dashboard, such as risk modeling, the integration of user- provided impact/loss data and adding new climate variables.

The Disaster Risk Financing and Insurance Program

The Disaster Risk Financing and Insurance Program (DRFIP) is part of the World Bank Group's Finance, Competitiveness and Innovation Global Practice. DRFIP has provided advisory services on disaster risk financing and insurance to more than 60 countries worldwide. The program works along four priority areas to support governments, farmers, homeowners and SMEs, and the poorest and most vulnerable.

For more information, please contact:

John Plevin
jplevin@worldbank.org


ngdindex@worldbank.org

Photo Credit: Copernicus Sentinel data (2019), processed by ESA, CC BY-SA 3.0 IGO

www.financialprotectionforum.org
up-arrow down-arrow