ASEAN DRFI Programme
The “New Normal”
Over the years, regional stability and rapid economic progress in the Association of Southeast Asian Nations (ASEAN) continuously improve the lives of its people. Today, ASEAN is the 7th largest economy in the world with a combined US$2.6 trillion in GDP. It is the 3rd largest market with a population of 622 million.
But the growth of the region is continuously being threatened by disasters. ASEAN is considered as one of the most hazard and disaster prone areas in the world. With climate change affecting the frequency and intensity of extreme weather events, the constant threat to people’s lives, wellbeing, and future are frequent and most often devastating.
It is in these conditions that ASEAN finds itself in the “new normal” – where the region’s economic growth and development are constantly being challenged. This spiralling cost of disaster also tests the ability of the region to bounce forward, adapt, and recover to become more resilient to disasters and climate change.
To respond to the challenge, ASEAN designed several regional policies to reduce the region’s disaster losses and protect the development gains attained. As a result of these policies, ASEAN created a regional disaster risk financing and insurance programme (ASEAN DRFI Programme) that will implement strategies in risk financing, risk transfer, and other social protection schemes that will increase the financial response capacity of its Member States in addressing post-disaster funding needs.
The ASEAN Roadmap for Disaster Risk Financing and Insurance
The ASEAN DRFI Programme is mandated to implement the ASEAN Roadmap for Disaster Risk Financing and Insurance (DRFI) as well as ensure the goals set under the priority programmes of the ASEAN Agreement on Disaster Management and Emergency Response (AADMER) are achieved.
The roadmap emphasises the importance of DRFI strategies as part of a broader disaster risk management agenda at all levels in the region.
Based on the roadmap, ASEAN DRFI Programme aims to:
- STRENGTHEN capacities of Member States and the region as a whole to effectively manage the impacts of disasters;
- ENHANCE the financial resilience of the ASEAN Community; and
- PROMOTE regional cooperation on DRFI for a disaster- and climate-resilient ASEAN.