Financial Protection of Critical Infrastructure Services

APEC member economies are among those most exposed to disasters globally; Asia-Pacific alone faces estimated annual economic losses caused by disasters of US$675 billion. Disruption to critical infrastructure can cause major adverse economic effects and significant harm to the well-being of citizens - especially the poor and vulnerable. Critical infrastructure is defined as assets, systems, and networks that provide essential services for the security of a nation, its economic prosperity, and the health and safety of its citizens. Ensuring the continuity of critical services in the aftermath of a disaster should be one key objective of financial protection of critical infrastructure. In addition to ensuring that finance is available to minimize disruptions, financial protection of critical infrastructure should manage the fiscal impact from any shock.