A. Response − with Various Relief Programmes


The risk analysis and monitoring of the ERP approach is considered to be the first component under the ‘prepare’ phase. This is already described in Phase 1 Prevention (see section A Risk Assessment). In general, the risk analysis identifies the extreme weather events that could cause a loss and determines whether thresholds are low, medium or high. The development of a contingency plan is recommended when risk thresholds are defined to be medium or above (see Phase 2.A Step 3). The risk monitoring should be undertaken to provide early warnings, which allow for early action such as scale-up of drought-resilient agricultural cultivation practices, and dissemination of climate information to support decision-making.

Brief Description

Disaster response is predominantly focused on immediate and short-term needs. Response strengthens the quality and impact of relief programmes, while recognizing that decisions made at the response stage can have a significant impact on early recovery, as these processes are interlinked. By developing a framework to manage recovery, a government may be able to better address longer-term disaster vulnerability through coherent programmes that bridge the current gap between recovery and development.

Involved Actors

“Emergency services are a critical set of specialized agencies that have specific responsibilities in serving and protecting people and property in emergency and disaster situations (United Nations General Assembly, 2016).” Though everybody affected is involved in relief activities, according to its own capacity it is the overall responsibility of the national government to set up a ‘lead agency’ for managing the response and recovery process. The ‘lead agency’ could be structured according to the following options:

  • Strengthen existing sectoral line ministries, which would be the ministry of agriculture for reconstructing the agricultural sector.
  • Create a new institution to manage recovery.
  • A hybrid arrangement of both; the ministry of finance and departments of humanitarian assistance are always involved.

The PDNA, but also the subsequent recovery process, includes participation of the relevant government ministries (e.g. agriculture, infrastructure, and rural development), civil society, the private sector and the affected communities, often with the support of international organizations such as the World Bank, the United Nations system, or the European Union, and with humanitarian relief organizations such as the Office for the Coordination of Humanitarian Affairs and the International Federation of Red Cross and Red Crescent Societies.


Anticipating potential losses

Insurance is a tool to anticipate potential loss and damage and enhances the ability to estimate the impact of weather events on individuals, the private sector and countries.

Enabling governments to plan better

Insurance policies provide information prior to an event about the payout amount and the disbursement time, allowing governments (and other insured) to plan their post-disaster response and relief efforts accordingly.

Reducing liquidity gaps

Insurance (and pre-disaster financing) ensures the availability of funds for post-disaster response and recovery, although insurance should not be the means for paying for response and recovery per se. Index products especially reduce government liquidity gaps after extreme weather events and relax ad hoc budget redistribution that disrupts the development plans of the state.

Immediate start of the response

The appeal-based fundraising process of international humanitarian agencies is time-consuming and may take about eight months from identification of crop failure to humanitarian aid delivery. Index insurance payout is attempted to happen within three weeks, enabling the government to start relief programmes quickly.

Depoliticize disaster responses

As insurance payouts are defined in insurance policies, they follow objective indices, hence helping to depoliticize disaster responses.

Quick re-start of business

The private sector would benefit as quick payouts enable SMEs to restart their business operations, hence limiting post-disaster impacts on the economy

(details in Phase 2.A.1 Insurance).

Avoid slipping back into poverty

For the affected population, insurance can play a role as a safety net as it helps the insured to not resort to negative coping strategies that might impede sustainable development, or let affected people slip back into poverty.

Faster replace¬ment of damaged stock

Insuring the stock for relief programmes would lead to faster replacement if food items or relief equipment were destroyed or damaged.

Appropriate institutional arrangements help quick insurance payouts if the infrastructure is damaged

Institutional arrangements for insurance payouts have to be developed prior to extreme weather events and contain multiple actors from the industry (e.g. insurance providers and reinsurers), the government (e.g. ministries of finance and social protection, and insurance regulators) and delivery channels (e.g. NGOs, MFIs, suppliers and technology providers).

Actors involved have to plan ahead when infrastructure is damaged but quick insurance payout is essential