Financial Protection in Latin America & the Caribbean

Natural disasters in LAC often have devastating economic impacts due to rapid urbanization and concentration of assets that are increasingly exposed to climate and seismic hazards. Despite of efforts to regulate and implement other risk mitigation measures, many countries in LAC are unable to keep up with construction and the pace of urban sprawl. Without adequate financial protection mechanisms, governments struggle to manage fiscal shocks caused by emergency-relief and reconstruction needs. In Latin America and the Caribbean (LAC), the Disaster Risk Financing and Insurance Program (DRFIP) assists governments to become proactive risk managers through strategic financial planning and private sector development, especially in the areas of catastrophe insurance.