Frequently Asked Questions
What is the ADRFI Programme?
What is its mandate?
The ADRFI Programme is mandated to implement the ASEAN Roadmap for Disaster Risk Financing and Insurance (DRFI). In November 2011, during the ASEAN DRFI Forum held in Jakarta, Indonesia, the ASEAN DRFI Roadmap was jointly developed by three sectoral bodies: the ASEAN Committee of Disaster Management (ACDM), the ASEAN Insurance Regulators Meeting (AIRM), and the ASEAN Finance and Central Bank Deputies Meeting (AFCDM).
In 2013, the 17th ASEAN Finance Ministers’ Meeting (AFMM) endorsed the establishment of the ASEAN Cross-Sectoral Coordination Committee (ACSCC) on DRFI, comprising of the three sectoral bodies, to facilitate the implementation of the DRFI Roadmap. The coordination committee members are the Chairs and/or Vice Chairs of ACDM, AIRM, and AFCDM.
The ADRFI Programme is also tasked to carry out the priority project on risk insurance and risk financing in the ASEAN Disaster Management and Emergency Response (AADMER) Work Programme 2016–2020.
What is the ASEAN Disaster Management and Emergency Response (AADMER)?
With the increasing exposure of the region’s assets to the impacts of disasters, ASEAN responded with several regional policies. These policies were designed to reduce disaster losses being suffered by the region and protect the development gains attained.
One such regional policy is the ASEAN Agreement on Disaster Management and Emergency Response (AADMER). AADMER has several strategic components in which risk financing and risk transfer aspects are embedded.
What is the ASEAN Roadmap for Disaster Risk Financing and Insurance?
The ASEAN Roadmap for DRFI recognises the importance of (i) DRFI strategies at both regional and national levels, (ii) various options of ex-ante risk financing options as well as risk transfer, and (iii) emphasises that DRFI strategies should be part of the broader disaster risk management agenda at all levels. The Roadmap aims to:
- Strengthen the 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.
How will the ADRFI Programme implement the ASEAN Roadmap for DRFI?
As the regional initiative of ASEAN to implement the DRFI Roadmap, ADRFI Programme aims to achieve the roadmap’s objective with strategies prescribed for both regional and national levels to reduce disaster losses in the region.
The ASEAN DRFI Roadmap has regional strategies such as developing risk information and modeling, capacity building knowledge sharing, and exploring the possibility of a regional risk pooling facility. It also recommends national level interventions such as developing risk financing and insurance strategies even at the local level, promoting risk insurance as part of the broader disaster risk management agenda and financial inclusion strategies.
How can the ADRFI Programme assist ASEAN Member States become resilient from the impacts of disasters?
In ASEAN Member States, national governments are often the ones who bear the burden of the damages and losses brought about by disasters. They are the ones who pay for catastrophic losses and eventually absorb the financial impacts. Thus, they deal with the potential financial effects through post-disaster or “ex post” financing mechanisms. These ex-post financing schemes are often unplanned and unreliable.
On the other hand, planned and proactive risk financing instruments or “ex ante” mechanisms are common alternatives used by governments to deal with unexpected financial expenditures due to disasters.
The challenge now that ADRFI Programme is addressing is to make governments become more financially prepared and resilient to absorb the risks when disasters strike.
The ADRFI Programme implements the DRFI Roadmap to achieve this objective.
How does the ADRFI Programme work?
The ADRFI Programme is carried out in three phases:
Phase 1: Capacity development of ASEAN and Member States in disaster risk information management, public policy development, and knowledge management.
Phase 2: Further enhance capacities of Member States to (i) mitigate disaster and climate risks, (ii) manage disaster impacts through risk assessment and modeling as well as institutional and policy frameworks that support national and regional risk financing and insurance solutions, and (iii) establish cost-effective risk transfer schemes for ASEAN.
Phase 3: Establish a cost-effective risk transfer programme for ASEAN (e.g., regional catastrophe risk insurance pool) to enhance the financial resilience of Member States and ensure long-term sustainable development of the region.
How to get in touch with the ADRFI Programme?
The ASEAN DRFI Programme is based in Jakarta, Indonesia, with the following address:
ASEAN DRFI Programme
70A Jl. Sisingamangaraja, Jakarta 12110 Indonesia
Tel: (6221) 7262991, 7243372 ext. 114, 248 or 320
Fax: (6221) 7398234, 7243504