The Case for Colombia: Implementing an Integrated Disaster Risk Financing and Insurance Strategy

Colombia suffers from more than 600 natural disasters annually, the highest rate of reoccurring natural disasters in Latin America. And the frequency and depth of these disasters continue to rise.  85% of Colombia’s 48 million residents, as well as its public buildings and assets, are all located in areas regularly exposed to natural disasters. In terms of economic impact, accumulated losses from the last 40 years have amounted to $1.7 billion.

For over a decade, the Colombian government has invested in increasing its financial resilience to natural disasters, gradually integrating this goal as part of its broader fiscal risk management, public debt management, and disaster risk management priorities. During this BBL, speakers representing Colombia’s Ministry of Finance and Public Credit, Colombia’s National Procurement Agency (Colombia Compra Eficiente), and the World Bank, will summarize their experience in implementing an integrated Disaster Risk Financing and Insurance (DRFI) strategy, share success stories on productive inter-agency coordination, and discuss the World Bank’s role in advising the ministry, as well as providing Colombia with its first Development Policy Loan with Catastrophe Deferred Drawdown Option - the first World Bank product designed specifically to provide contingent financing for natural disasters. 

Opening Remarks:  

Ivan Pavletic, Advisor to the Executive Director of Switzerland

Zafer Mustafaoglu, Practice Manager, Finance and Markets

Speakers:  

Andrés Quevedo,

Head of Risk Management, Ministry of Finance, Government of Colombia

Nicolás Penagos,

Deputy Director, National Procurement Agency, Government of Colombia

Host and Concluding Remarks:

José Ángel Villalobos, Senior Insurance Specialist, Finance and Markets