Sovereign Disaster Risk Finance in Middle-Income Countries

In 2012, Switzerland’s State Secretariat for Economic Affairs (SECO) and the World Bank’s Disaster Risk Financing and Insurance Program (DRFIP) joined efforts to support middle-income countries (MICs) in building their financial resilience against natural disasters.

During a first phase (2012–2016), the Sovereign Disaster Risk Finance in Middle-Income Countries Program (the Program) provided tailored advisory services and institutional capacity building for public financial management of natural disasters, with promising outcomes. In just four years, the Program helped participating countries better understand the financial impact of disasters, often leading to institutional changes and reforms in support of financial planning for disasters. For instance, guidelines developed under the Program played a key role in improving the quality and coverage of insurance of public assets in Colombia and Peru, and of private assets in Morocco.