UNDP presented risk management models for natural disastersMar 31, 2017
United Nations Development Programme (UNDP), within the project “Technology transfer for climate resilient flood management in Vrbas River Basin”, funded by the Global Environmental Facility (GEF), held roundtables in Sarajevo and Banja Luka on “Importance of insurance in risk management for natural disasters, with particular reference to floods”.
The roundtables were organized for the representatives of ministries, insurance companies and professional associations. The participants were presented with positive experiences of the developed and developing countries in the application of various models of risk management in the cases of natural disasters, with a particular emphasis on insurance.
“Introduction of an insurance system for floods and other natural disasters for legal entities, agricultural households, public and residential buildings can contribute to reducing the risk of floods and other natural disasters. Through project activities, we encourage discussion between the key stakeholders in this field in order to define the risk management insurance model applicable in Bosnia and Herzegovina” stated Raduška Cupać, UNDP project manager.
One of the models is the public-private one, by which a flood insurance pool would be established. Members of this pool would be the insurance companies that have the financial capacity to accept the risks of flooding.
The lecturer, prof. Jelena Kočović, PhD, stressed that “without the introduction of compulsory insurance from the risk of disasters, we cannot cope with the harmful consequences. Huge financial losses from the floods that hit BiH in 2014, remind us that we should no longer leave anything to chance”. It is estimated that the floods of 2014 in BiH caused the damage amounting to 15% of GDP.
According to the European Environment Agency, the annual flood losses can be expected to increase fivefold until 2050 and up to 17‑fold by 2080. Most of this increase (70%-90%) is estimated to occur due to socio-economic development as a result of the increase of economic value of the assets in floodplains and the rest (10%-30%) due to climate change. The roundtable participants agreed that it is necessary to pay more attention to the education of the population, especially young people, in the area of insurance from the risk of flooding and other natural disasters.
The Project “Technology transfer for climate resilient flood management in Vrbas River Basin” aims at enabling the governments of BiH at all levels to adapt to flood risks by applying the technologies providing for climate resilient economic activities.