CARIBBEAN GRouP FOR COOPERATION IN ECONOMIC DEVELOPMENT NATURAL HAZARD RISK MANAGEMENT IN THE, CARIBBEAN: GOOD PRACTICES AND COUNTRY CASE STUDIES TECHNICAL ANNEX DISCUSSION DRAFr Caribbean Country Management Unit Latin America and-the Caribbean Regio'n.( The World'Bank FULE I |This paper was prepared under the auspices of the Caribbean Group of Cooperation' in Economnic Developmet -'(C(GCED). Established in 1977, the CGCED has evolved into a forum for policy dialogue and aid coordination among the :Caribbean countries, inteinational financial. institutions, bilateral donors, non-governmental organizations, and private sector * enterprises. A mieting.of the CGCED has been held every two years in Washington, DC and chaired by the World Bank. In addition to country strategy papers, the following studies have been'prepared for the 2002 meeting: Caribbean Economic- Overview 2002: Macraecon'omic Valcitility; Household Vulnerability, and Institutional and Policy Responses (World Bank) rImplementation of the Caribbean Single Market and Ec6nomy. (Messrs. Brewster, Dolan, and Stewart)' Development Assistance and Economic Development in the "Caribbean Region: Is There a Correlationn? (W_orld Bank) Natural'Hazard Risk Management in 'the Caribbean: Revisiting the Challenge Natural'Hazard Risk Management in-the Caribbean: Good Practices and County Case Studies (Technkial Annex) (World Bank) Youth Development in the Caribbean {World Bank) NATURAL HAZARD RISK MANAGEMENT IN THE CARIBBEAN: GOOD PRACTICES AND COUNTRY CASE STUDIES TECHNICAL ANNEX Report No. 24166-LAC June 2002 Caribbean Country Management Unit Latin America and the Caribbean Region The World Bank NATURAL DISASTER RISK MANAGEMENT IN THE CARIBBEAN: GOOD PRACTICES AND COUNTRY CASE STUDIES TECHNICAL ANNEX TABLE OF CONTENTS Page No. Introduction: A study of natural hazard risk management practices in the Caribbean......................... A. Identification of good practices, assessment of actual practices ................................................. 1 Individuals consulted for actual practice assessments .................................................2 a) Antigua and Barbuda ......................2 b) British Virgin Islands ..2.................... c) Dominica .....................2 d) Dominican Republic .....................3 e) Grenada .....................3 f) Jamaica ....................3 g) St. Kitts and Nevis ..4...................4 h) St. Lucia ......................4 i) St. Vincent and the Grenadines ......................4 j) OECS Sub-region ......................4 k) CARICOM Region ...........................4 B. Regional review meeting ...........................4 Regional review meeting participants ...4.......................4 ANNEX 1: NATURAL HAZARD RISK MANAGEMENT GOOD PRACTICES .6 A. Risk management categories ...................................6 1. Table 1: Good practices-risk identification ...................................6 a) Hazard assessment and mapping ....6..............................6 b) Vulnerability assessment ..................................6 c) Risk assessment ...7...............................7 2. Table 2: Good practices-risk reduction ...................................7 a) Physical measures ...................................7 b) Socio-economic measures ..................................7 c) Environmental measures ..................................7 d) Post-disaster measures ...................................7 3. Table 3: Good practices-risk transfer ....................................8 a) Budget self-insurance ..8.....................8 b) Market insurance and reinsurance ...8....................8 c) Public asset coverage ........................8 d) Risk pooling and diversification ........................8 e) Risk financing ........................9 Page iii B. Risk management actors ..................................................9 1. Local level ..................................................9 a) Civil society (communities and their organizations) ..................................................9 b) Local government-policy and technical ..................................................9 c) Local disaster committees .................................................9 2. National level .................................................9 a) Central planning and sectoral agencies-policy and technical ................................................... 9 b) National disaster office ..................................................9 c) Business and industry-leadership and members ................................................. 10 3. Subregional level ................................................. .. 10 a) OECS framework ................................................. 10 b) Country to country collaboration ................................................. 10 4. Regional level ................................................... 10 a) Regional institutions ................................................. 10 b) Multi- and bi-lateral lending institutions and donors ................................................. 10 ANNEX 2: SUMMARY OF RISK MANAGEMENT GOOD AND ACTUAL PRACTICES .22 A. Risk Identification .22 B. Risk Reduction .26 C. Risk Transfer .32 ANNEX 3: ASSESSMENTS OF RISK MANAGEMENT: ACTUAL PRACTICES .35 Antigua and Barbuda .36 British Virgin Isands.47 Dominica.56 Dominican Republic.66 Grenada.82 Jamaica.92 St. Kitts and Nevis.108 St. Lucia.119 St. Vincent and the Grenadines .131 OECS and CARICOM.140 Page iv NATURAL DISASTER RISK MANAGEMENT IN THE CARIBBEAN: GOOD PRACTICES AND COUNTRY CASE STUDIES TECHNICAL ANNEX Introduction: A study of natural hazard risk management practices in the Caribbean During the first quarter of 2002, the World Bank contracted the Unit for Sustainable Development and the Environment of the OAS (OAS/USDE) to undertake a study of risk management practices in the Caribbean. The purpose of this study was to identify appropriate actions, agencies and levels for hazard risk management in the region. The results were used to identify good practices for natural hazard risk management, to highlight successful examples of these practices and to clarify significant risk management gaps in the region. In addition to their use within this project, the identified risk management good practices are intended to provide guidance and information for individuals, governments and organizations on useful hazard risk management interventions. This study focused exclusively on policies and practices for long-term natural hazard risk management, Preparedness, response and recovery activities are not included in the analysis framework adopted in this paper. This is not to imply that these activities are unimportant; effective risk management is not possible without them. Despite existing discussions and successful pilot initiatives, natural hazard risk management initiatives do not have the same constituency and political support as do the traditional disaster management activities. Accordingly, the study was designed to address that gap by focusing exclusively on natural hazard risk management. The study covered risk management practices for natural hazards and did not include technological hazard considerations. A similar exercise is recommended addressing technological hazards, such as oil spills and industrial accidents. A. Idenlfi4cation ofgoodpracizces, assessment of aciualpract.ces The first step in this process was to review existing natural hazard risk management practices and select appropriate or "good" activities. Activities were identified as good practices based on tangible, measurable outcomes, the capability of replication and the appropriateness for use within the Caribbean. The review process considered the principal dimensions of natural hazard risk management (risk identification, risk reduction, and risk transfer) and appropriate levels (local, national, region) for implementing the identified practice. Definitions of these risk management dimensions and actors are included in the following section. Using the resulting good practices as a yardstick, actual management practices and gaps were assessed in Antigua and Barbuda, the British Virgin Islands, Dominica, the Dominican Republic, Grenada, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, as well as at the sub-regional (OECS) and regional (CARICOM) levels. For each of these assessments, actual practices and gaps were summarized in separate matrices for risk identification, risk reduction and risk transfer activities. All entries are based on a complete, factual analysis and indicate actual, verifiable practices. Caribbean consultants with risk management expertise carried out these assessments. In each of the study countries-and at the OECS and CARICOM levels-the consultants were charged with the following tasks: a. Contact appropriate government and private-sector representatives to determine risk identification and risk reduction practices currently in place. b. Determine, as appropriate to the local situation, the gaps between identified current practices and established good practices (i.e., where the actual practice is insufficient or where there is no comparable actual practice) and identify appropriate recommendations to address the gaps in practice. c. For each country, produce two matrices, which describe 1) actual practices and 2) the gaps in practice. Page I Consultant - Componenl(s) Country(s) Peter Adrien Risk Transfer Antigua/Barbuda, Dominica, Grenada, St. Kitts/Nevis, St. Lucia, St. Vincent and the Grenadines, OECS, CARICOM Tony Gibbs and Risk identification Dominican Republic Christine Herridge Risk reduction Risk transfer Cedric Stephens Risk transfer Jamaica Deborah Thomas Risk identification Antigua/Barbuda, British Virgin Islands, Dominica, Risk reduction Grenada, Jamaica, St. Kitts/Nevis, St. Lucia, St. Vincent Risk transfer [BVI only] and the Grenadines, OECS, CARICOM Upon completion of the detailed assessments, a series of matrices were developed. These documents are compiled in this technical annex. Annex 1: Matrices of natural hazard risk management good practices for risk identification, risk reduction and risk transfer Annex 2: Matrices of actual practice and gaps in practice in each of the study territories and for the OECS sub- region and the CARICOM region. Annex 3: A summary table highlighting Caribbean examples for major risk management good practices. The findings of and recommendations resulting from this work are described in the paper Natural Hazard Risk Management in the Caribbean: Revisiting the Challenge. Individuals consultedfor actual practice assessments a) Antigua and Barbuda * Fillmore Mullin-Deputy Director, National Office of Disaster Services * Ehret Burton-General Manager, Industry and Commerce Insurance Company * Holly Peters-Chamber of Industry and Commerce * Robert Josiah-Acting General Manager, Sate Insurance, Antigua and Barbuda b) British Virgin Islands * Charlene D'Arbreau-Director, Department of Disaster Management * Joseph Scatliff-Mitigation Officer, Department of Disaster Management * Louis Potter-Chief Physical Planning Officer, Physical Planning Department * William McCullough-Insurance Officer, Financial Services Department * Shan Mohammed-NAGICO * Otto O'Neal-Director of Planning and Statistics, Development Planning Unit, Ministry of Finance c) Dominica * Cecil Shillingford-Director, Office of Disaster Management * Eric Shillingford-Development Control Officer, Physical Planning Division * Nicholas Bruno-Acting Budget Director, Ministry of Finance Page 2 d) Dominican Republic * Alfredo Ricart-Nouel--Consulting Structural Engineer * Joachim Gustavo-Technical Director of Insurance * Ing Sim6n Mahfoud-(until recently) Technical Vice President, Compaifa Nacional de Seguros (now 2nd Vice President of Banco Reservas insurance company) * Ing Evelio Martinez-2nd Vice-President of Engineering, Companifa Nacional de Seguros (SEGNA) * Ing Maximo Vifias-General Advisor in Health, Industrial Safety and the Environment, REFIDOMSA (the Dominican Oil Refinery, affiliate of SHELL) * Ing Am6rico Julio Pefia-Environmental Advisor to the Senate of the Dominican Republic * Ing Hector O'Reilly-President of SODOSISMICA, Technical Advisor to Public Works * Mr Ivan Reynoso-Executive Director of the Santiago Chamber of Commerce and Production * Mr Jose Almonte-Director of Industrial Safety and Quality, CODETEL/VERIZON * Mrs Paula Dimitri-Executive Director of the Santo Domingo Hotel Association * Ing Jos6 Alarc6n-Coordinator of the Risk Management and Zoning Component of the Technical Secretariat to the Presidency's Disaster Prevention Sub-Program * Mrs Marfa Rodriguez-Head, Environmental Planning Department of the National Planning Office e) Grenada * Joyce Thomas-National Disaster Coordinator, National Emergency Relief Organisation * Cecil Fredericks-Senior Planning Officer (Ag), Physical Planning Unit * Fabian Purcell-Planning Technologist, Physical Planning Unit * Dennis Clarke-Director of Economic Affairs, Ministry of Finance and Planning * David Phillip-Managing Director, NALGICO f) Jamaica * Paul Saunders-Director General (Ag), Office of Disaster Preparedness and Emergency Management * Cecil Bailey-Senior Officer, Mitigation and Planning, ODPEM * Joella Mitchell-Research Analyst, ODPEM * Anestoria Shalkowski-Mitigation Project Officer, ODPEM * Michelle Edwards-Planning Analyst, ODPEM * Franldin McDonald-Chief Executive Officer, National Environment and Planning Agency * Joy Alexander-Director of Planning and Development, NEPA * Leonard Francis-Manager, Development Control Branch, NEPA * Marc Rammelaere-Director, Information Technology, NEPA * Rafi Ahmad-Disaster Studies Unit, UWI Department of Geology and Geography * Alfrico Adams-Consulting Engineer, SMADA Consultants Ltd * Richard Black-Group Security Manager, Grace Kennedy Ltd * Herbert Thomas-Water Resources Authority * Norman Harris-Director of Applied Research, Mines and Geology Division * Joseph A. Bailey-General Manager, Building Societies Association of Ja. * Greta Bogues-CEO, Private Sector Association of Ja. * Leslie Chung-Chairman, Jamaica Assn of General Insurance Cos. * Carmen Griffiths-Executive Director, Construction & Resources Dev. Centre * Stephen Hodges-Director, Construction & Resources Dev. Centre * David Linehan-President, Jamaica Insurance Brokers Association * Geoffery Melbourne-Associate actuary, Watson Wyatt & Duggan Consulting Actuaries * Michelle Rose-Construction Resources Dev. Centre * Devon Rowe-Deputy Financial Secretary [economics], Ministry of Finance & Planning * Mr. Evan Thwaites-Deputy Chairman, Jamaica Assn of General Insurance Cos. Page 3 * Brian Wynter-Executive Director, Financial Services Commission g) St. Kitts and Nevis * Carl Herbert-National Disaster Coordinator (Ag), National Emergency Management Association * Ellis Hazel-Chief Planner, Physical Planning Department * Llewellyn Newton-Disaster Coordinator (Nevis) National Emergency Management Agency * Ruth Joseph-Insurance Regulator, Ministry of Finance * Oliver Knight-Director of Planning, Ministry of Finance, Development and Planning * Patrick Williams-Senior Physical Planning Officer, Ministry of Finance, Development and Planning h) St. Lucia * Dawn French-Director (Ag), Office of Disaster Preparedness * Daune Heholt-Deputy Physical Planning, Officer Physical Planning Department * Judith Joe-Supervisor of Insurance, Ministry and Planning * Reginald Darius-Director of Finance, Ministry of Finance and Planning * Phillip Dalsou-Comptroller of Budget, Ministry of Finance and Planning i) St. Vincent and the Grenadines * Howie M. Prince-National Disaster Coordinator, National Emergency Organisation * Ms. Laura Anthony Brown-Director of Planning, Central Planning Division * Isaac Solomon-Budget Director, Ministry of Finance and Planning j) OECS Sub-region * David Popo-Project Officer, Watershed Management Project and Small Projects Facility, OECS/NRMU * Doug Hickman-Field Manager, Environmental Capacity Development Project, OECS/NRMU * Allister Campbell, Director General, Insurance Association of the Caribbean (IAC) k) CARICOM Region * Dr. Cassandra Rogers-Project Manager, Disaster Mitigation Facility, Caribbean Development Bank * Jennifer Worrell-Regional Disaster Adviser, USAID * Donovan Gentles-Preparedness and Response Manager, CDERA * Evelyn Wayne, Deputy Programme Manager, Macroeconomics and Trade Policy Coordinator * Jeremy Collymore, Coordinator, Caribbean Disaster and Emergency Agency (CDERA B. Regionalreview meeting In March 2002, a two-day regional meeting was convened in Kingston, Jamaica, to review the results of the actual practice assessments and a draft of the document Natural Hazard Risk Management in the Caribbean: Revisiting the Challenge. Participants in the meeting represented national disaster and environmental agencies, CDERA, the Caribbean Development Bank, USAID, UNDP, the World Bank and the OAS/USDE. A participant list is included in this annex. The results of the discussions at this meeting were used to update and prepare a final draft of the main report, Natural Hazard Risk Management in the Caribbean: Revisiting the Challenge. Regional review meeting participants * Oliver Davidson-Consultant, World Bank Page 4 * Amaud Guinard-World Bank * Eleanor Jones-Environmental Solutions, Jamaica * Ambassador Mosina Jordan-USAID-Jamaica * Franklin McDonald-NEPA, Jamaica * Bartholomew Nyarko-Mensah-UNDP-Barbados * Elizabeth Riley-CDERA * Cassandra Rogers-CDB-DMFC * Paul Saunders-ODPEM, Jamaica * Joyce Thomas-NERO, Grenada * Steven Stichter-OAS/USDE * Jennifer Worrell-USAID-OFDA/LAC Page 5 ANNEX 1: NATURAL HAZARD RISK MANAGEMENT GOOD PRACTICES A. R,Pirk managenene calegories Many related, but slightly differentiated, definitions exist for disaster management and mitigation concepts. This section describes the definitions that were adopted in creating the good practices matrices. These descriptions provide a context for review, discussion and use of these matrices; they are not intended as definitive explanations for these concepts. 1. Table 1: Good practices-risk identification a) Hazard assessment and mapping Hazard assessments are studies that provide information on the probable location and severity of dangerous natural phenomena and the likelihood of their occurrence within a specific time period in a given area. These studies rely heavily on available scientific information, including geologic, geomorphic, and soil maps; climate and hydrological data; and topographic maps, aerial photographs, and satellite imagery. Historical information, both written reports and oral accounts from long-term residents, also helps characterize potential hazardous events. Ideally, a natural hazard assessment promotes an awareness of the issue among all stakeholders in an affected area, evaluates the threat of natural hazards, and describes the distribution of historical or potential hazard effects across the study area. b) Vulnerability assessment Vulnerability assessments are systematic examinations of building elements, facilities, population groups or components of the economy to identify features that are susceptible to damage from the effects of natural hazards. Vulnerability is a function of the prevalent hazards and the characteristics and quantity of resources or population exposed (or "at risk") to their effects. Vulnerability can be estimated for individual structures, for specific sectors or for selected geographic areas, e.g., areas with the greatest development potential or already developed areas in hazardous zones. * Socio-economic vulnerability. A social vulnerability assessment evaluates the vulnerability of the population and the economy to the effects of hazards. Both direct effects, such as personal injuries, and indirect effects, including interruption of employment and economic activities, disruption of social networks and increased incidence of disease are included. Significant differences in vulnerability typically exist among different segments of the population, due to factors such as quality of housing, financial stability and access to assistance. * Physical vulnerability. A physical vulnerability assessment focuses on the vulnerability of the built environment, including buildings, homes, infrastructure and roads. Such an assessment includes reviews of the standards used in design and construction, locational vulnerability factors, current status and maintenance practices. Physical vulnerability assessments are useful tools for identifying deficiencies in current building and maintenance practices, for determining appropriate locations and uses for buildings and facilities and for prioritizing the use of resources for retrofit and upgrading of structures. * Environmental vulnerability. Many environmental systems stabilize potential hazards or buffer their effects. Intact forests stands can support unstable steep slopes and reduce soil runoff and sedimentation. Coral reefs and mangroves can help anchor coastlines and reduce the impact of storm surges and waves. Degraded systems are less able to perform these functions, more vulnerable to damage and are less resilient in recovery from hazard effects. Improper development, management or repeated hazard damage contribute to this degradation. Page 6 c) Risk assessment A risk assessment is an estimate of the expected loss to a system exposed to a given hazardous event. It is a function of the probability of the hazard and the vulnerability of the components that can be affected by the hazard. Carrying out a risk assessment requires an estimate of the probability of experiencing the selected event and an understanding of the effects of such an event on the resources at risk-people, structures, employment and the economy-in the assessment area. A probable maximum loss study is one example of a risk assessment. Results of such an assessment are important for prioritizing investments in vulnerability reduction and for understanding insurance and reserve funds requirements. 2. Table 2: Good practices-risk reduction a) Physical measures * StructuraL Structural risk reduction measures include any actions that require the construction or strengthening of facilities or altering of the environment to reduce the effects of a hazard event. Measures to strengthen public- and private-sector buildings or facilities include flood- and wind proofing, elevation, seismic retrofitting and burial (e.g. utilities). Such measures are designed to reduce or eliminate damage to structures and their contents and functions. Environment alteration measures are designed to stabilize an otherwise unstable or hazardous area, to redirect a hazard or to reinforce natural systems that buffer hazard effects. Such measures include sediment trapping structures, shore protection and flood control works, slope stabilization, brush clearing and wetlands protection. * Non-structuraL Non-structural measures are changes to policies and programs that guide future development and investment towards reduced vulnerability to hazards. Examples of non-structural measures include physical development planning, development regulations, acquisition of hazardous properties, tax and fiscal incentives and public education. Typically, non-structural measures are significantly less costly than structural measures, but they have little immediate effect on reducing vulnerability and require oversight by the government to ensure continued, proper implementation. b) Socio-economic measures Social risk reduction measures are designed to address gaps and weaknesses in the systems whereby communities and society as a whole prepare for and respond to disaster events. These measures are typically the responsibility of the National Disaster Offices and associated district- or community-level organizations. Effective community- and national-level social networks and health systems can also contribute to assuring continuity and recovery after a disaster event. Weaknesses in these systems are often concentrated in disadvantaged areas and groups. Awareness programs addressing existing hazards and physical and social vulnerabilities are often central to social risk reduction. c) Environmental measures Environmental risk reduction measures are designed to protect existing or rehabilitate degraded environmental systems that have the capacity to reduce the impacts of natural hazards. These can take the form of policies and programs, such as development control or environmental impact assessments, that reduce or eliminate the effect of human activities on the environment. They can also include physical measures that restore or fortify damaged environmental systems. Secondary effects of hazard events, such as oil spills caused by flooding, must also be addressed as they often cause more significant environmental damage than do primary effects. d) Post-disaster measures In the aftermath of a disaster, there is great pressure to repair damage quickly. However, the quality of the reconstruction and rehabilitation work that takes place during this period often determines how well the same Page 7 system weathers future hazard events. Time and budget pressures and the difficulties in communication and transport in the post-disaster environment make it difficult to increase resilience during reconstruction. Putting in place pre-approved and tested reconstruction plans and procedures, with identified financing, can significantly reduce vulnerability to future hazard events, while overcoming the traditional time and budget constraints. Although reconstruction measures are a component of long-term response and recovery, they can form a critical component of a comprehensive risk reduction program, as the recovery period provides an important window of opportunity for implementing necessary risk reduction measures. 3. Table 3: Good practices-risk transfer a) Budget self-insurance The owner of a property-the government, a private company or an individual-allocates a modest yearly budget to spend on improved maintenance and on selected retrofit investments, which have the effect of reducing future expected losses in the event of a disaster. This enables the owner either to forego the purchase of regular insurance or to accept a higher deductible, thus reducing the cost of insurance. b) Market insurance and reinsurance Insurance provides coverage for damage and expenses that are beyond the potential for budget self-insurance. Market insurance stabilizes loss payments through pre-payment in the form of regular premium payments. Once the extent of coverage has been agreed and premiums paid under an insurance contract, the insurer assumes the risk. Insurance makes available funds necessary to repair damage or rebuild shortly after a disaster event. Insurance costs for certain categories of buildings or uses, however, may be unaffordable. Coverage for some categories of natural hazards may also be unavailable. Business interruption insurance can help companies and their employees survive the recovery and rehabilitation period. It is important to note that insurance as a mechanism does not reduce actual vulnerability and is inefficient from a cost perspective. Consequently, all efforts to reduce the vulnerability of the assets to be insured should be taken before transferring the risk through insurance. To be sustainable, insurance mechanisms should qualify risks and strive to bring in good risks, not serve as a dumping ground for bad or unwise risks. Great reliance on reinsurance in the Caribbean makes insurance prices in the region vulnerable to shocks unrelated to immediate disaster experiences in the region. c) Public asset coverage Most public assets are not covered by insurance. Funds for rebuilding damaged assets must come from annual budgets or external sources. This puts great pressure on public budgets in the post-disaster period when economies are often particularly weak, as typically little has been set aside for budget self-insurance purposes. Insurance coverage for critical public assets will ensure that key infrastructure can be rebuilt or rehabilitated quickly if damaged in a hazard event. Selection of assets that merit insurance coverage should be based on careful priofitization public facilities and on comprehensive facility vulnerability assessments. d) Risk pooling and diversification Insurance costs for geographically concentrated or relatively homogeneous groups or facilities are often high, due to the potential for simultaneous damage to all members of the group or category. Diversification of the risk pool, through banding with others from other areas or industries can result in reduced insurance premiums for all participants. Page 8 e) Risk financing Risk financing mechanisms allow losses to be paid off in the medium- to long-term via some form of a credit facility. Alternative risk financing mechanisms provide cost-effective, multi-year coverage that assists with the stabilization of premiums and increases the availability of funds for insurance purposes. Examples of such mechanisms include credit backstop facilities and finite insurance mechanisms. B. Risk maliagemeti actors Natural hazard risk management actions can be taken at many different levels. Typically, decisions that can be made and actions taken close to the individual- and community-level have more immediate and significant effects than do more distant ones. In cases where decision-making power and organizational mechanisms exist only at other levels, decisions and actions must be taken at those higher levels. The appropriate management level also depends upon the magnitude of the issue or impact. Problems that are broader or larger than can be handled by an individual community or, in some cases, country must be addressed by higher level actors. 1. Local level a) Civil society (communities and their organizations) Many organizations and groups exist at the local level to serve communities, often focused on specific geographic areas. Churches, service organizations, school-related groups and sports clubs can serve as information conduits, provide mutual support for members and neighbors and identify practices and developments that increase or decrease hazard vulnerability. Although placed at the local level within this framework, it is clearly understood that civil society plays a strong role in risk management at the national and regional levels. b) Local government-policy and technical Local governments, where they exist and function, can guide local vulnerability reduction efforts through policies and through the provision of technical assistance, informed by a clear understanding of local conditions and experiences. c) Local disaster committees Most national disaster and emergency management organizations in the region support a network of local disaster committees. These committees implement the activities of the national disaster organization, such as local shelter management and inform national disaster policies and actions through local disaster management planning. 2. National level a) Central planning and sectoral agencies-policy and technical National-level planning and sectoral agencies guide and implement national government policies and technical assistance. Both long-term planning activities and the day-to-day workings of the national govemment can significantly increase or decrease the current and long-term vulnerability of a country to natural hazards. b) National disaster office National disaster offices (NDOs) are responsible for developing and implementing disaster preparedness, response and recovery efforts at the national and local levels. NDOs can also serve as the major champion of risk reduction initiatives. However, most mitigation actions and initiatives, by their nature, must be implemented Page 9 by the sectoral agencies and organizations responsible for the infrastructure, assets, programs and individuals involved. c) Business and industry-leadership and members Private companies and their organizations-chambers of commerce, business and trade associations and standards organizations-control the majority of the businesses and assets that make up a country's economy. Their decisions on how to invest, build, maintain and insure these assets can have a significant effect on how well a country's economy can weather and recover from a natural hazard event. Although placed at the national level within this framework, it is clearly understood that business and industry actors play a strong role in risk management at the local and regional levels as well. 3. Subregional level a) OECS framework The secretariat and specialized agencies of the Organization of Eastern Caribbean States (OECS) provide assistance to OECS member countries, which can contribute to vulnerability reduction within the OECS sub- region. Development of appropriate model legislation, harmonization of existing legislation, collaboration on sub-regional financial issues, such as risk pooling, are examples of appropriate actions that can be taken at the sub-regional level. b) Country to country collaboration Effective horizontal cooperation, including sharing of lessons learned, good practices and post-disaster assistance, strengthens the resilience of the entire region to the effects of natural hazards. 4. Regional level a) Regional institutions Regional institutions, both private sector and inter-governmental, can play an important role in facilitating adoption of appropriate risk management practices by member countries and organizations. b) Multi- and bi-lateral lending institutions and donors Bi- and multi-lateral lending institutions can affect the vulnerability of the region to natural hazards through their lending programs. By ensuring that funded projects are appropriately sited and constructed, these institutions can contribute to overall risk management, rather than funding newly vulnerable assets. Page 10 Table 1: Risk Identification - Good Practices Entries in the matrix include both good practices outcomes and instruments. Good practices outcomes indicate the desired state or objective and are designated by bullets (.) and plain text. Good practices instruments are technical and institutional mechanisms that need to be deployed to reach the desired outcome; instruments are described in italics. ,|*Hazrd . sseFssment ,|^3f,s-. ^o.os ~*.sK.;-rgrplysesrsmenl - . Risk Assessment . ^ ....- , lit.and Mapping Socio-economic Physical Environmental Local . Population groups are aware of * Population groups are aware of * Public building uses appropriate * Local groups trained to identify * Highly vulnerable groups, local hazards. their vulnerability. to hazard resilience and safety. and protect environmental settlements and facilities Easy to understand hazard maps Time conmnunity participates in Inventories of populationi centers systems that stabilize potential identified. are readily available in the 'walk-through" mapping exercise and important structures condiucted hazards or buffer hazard effects. community and the local hazard to identify hazards and to assess vulinerability to local * Local groups identify the role history is regularly updated with vulnerabilities. hazards. of environmtental management Civil Society information about new events, both Commnuity leadership provides practices that increase large and small. Markers indicating members wit/i hazard maps to guide vulnerability and risk (locally and (Comnunities and their the site of hazard events posted as settlements. downstream), and identify and organizations) appropriate. * Trade associations, service assess the causes of * Local groups are trained to organizations and churches environmental decline (soil recognize indicators of local disseminate hazard preparedness erosion, deforestation, beach hazards. and mitigation information erosion, loss of mangroves, etc) * Local communities/groups in the context of local hazard communicate local hazard history. Communicate this information upward to local and information upward to local and national institutions. national institutions. * Use of individual emergency * Hazard-prone areas identified * Local govemment monitors * Local government has access to shelters limited by results of the Local ordinanices reviewed and environmental quality and risk maps at local level. vulnerability assessment. amended to include risk reductio,z communicates information New location and structural Appropriate uses well advertised. initiatives. upward to national institutions development standards Designated emergency shelters Public-sector regulationis reinforce (see above). appropriate to hazards indicated Policy assessed for vulnerability to local appropriaie siting and construction on ntaps. hazards to detennine appropriate standards. and safe uses. * Inventories of important structures conducted to assess vulnerability to local hazards. Local Government Appropriate builditig uses determined based on these assessments. * Hazard maps and information are * Causes of hazard-related * Causes of hazard-related available to local communities in an damages studied and remedies damages studied and remedies easy to understand forn and at the broadly disseminated. broadly disseminated. Technical appropriate scale. * Inventories of critical facilities completed and available to communities. * Permanent flood and storm surge level markers erected. Table 1-Risk Identification Page 11 Table 1: Risk Identification - Good Practices . Hazard Assessment Vulnerability Assessment R r |1 s ; | _ ~~~~~~~~~~~~~~~~~Risk Assessment . -- . r. ::.*,and lvlapping Socio-economic Physical Environmental d ,a '@ __ _ _ _ _ 4.- * Disaster Committees have access * Disaster committees have * Disaster committees have * Disaster Committees have Local Disaster Conunittees to and understand hazard maps at identified highly vulnerable identified highly vulnerable access to and understand risk .0 local level. population groups. development and infrastructure maps at local level. _ _ _ _ _ _ _ _ _ _ _ _ _ _ groups. National * , * National Disaster Mitigation * Government agencies have * Hazard vulnerability assessment * National development policies * Risk maps available for program established, with cabinet- identified highly vulnerable required as part of project appraisal. and plans protect natural systems prevalent hazards. Policy level responsibility. population groups. that contribute to hazard * Risk reduction priorities stabilization or mitigation. established based on socio- economic impacts. . Hazard mapping procedures and * Hazard vulnerability self- * Development standards are . Indicators of environmental . All government agencies Central Plainitig and mechanisms established and assessment techniques are available resilient to prevalent natural degradation developed and maintain current inventories of Sectoral Agencies initiated. to all socioeconomic groups. hazards. monitored. Causes of their physical assets Physical Plannbig Department * Vulnerability reduction measures * Standards developed for degradation, particularly when Techiical prepares hiazard naps Jbr each prioritized based on socio- appropriate building materials. contributing to hazard risk, hazard and integrates these into the economic impacts Standards enforced through identified and monitored. national GIS database. Appropriate * Local agricultural assistance custonts and standards restrictions. * National 'State of the recording devices and mechanisms programs highlight risk of hazards Environment' report prepared, installed. to agriculture, assist farmers with including recognition of links mitigation measures. between environmental quality and hazards. * Disaster office promotes the use * NDO has identified highly * NDO has updated an inventory of * Link between environmental of hazard information development vulnerable population groups. NDO all critical facilities, and results of a degradation and hazards and investment decisions across all has developed vulnerability recent vulnerability audit of these highlighted in awareness National Disaster Office sectors of government and the reduction programs targeting these facilities. campaigns. economy. groups. * NDO hazard awareness campaign includes information on link between hazards and the environment. Table 1-Risk Identificatiorn Page 12 Table 1: Risk Identification - Good Practices .s.,'W Hazard Assessnient Vulnerability Assessmenl ,, 'A, , 7 'r ' @' r, ' ' ad *llilappi ng Socio-economic Physical En%ironmental Business/industry and * Leaders involved in local and * Primary hazard implications and * Environmental features and * Insurance companies have govemment leaders cooperate in a national disaster committees. remedies compiled for each major protective systems protected in updated risk assessments for their formal process to identify facilities sector. new developments. portfolios. and services critical to economic Private sector construction * Environmiental impact B)' regulation insuirers establish and social development, regardless conforns to appropriate buildintg assessments that include anention auditable precise catastrophe of ownership, e.g. utilities, medical, standards. Costs of business to hazards used in decision peril liability inventories. By transportation and financial. interruption due to direct and making. regulation iisuirers and lenders to * Businesses/industry to identify indirect hazard effects included in repo-t their prograrnsfor Leaders risk reduction interventions to be assessment. discriminatory pricing & undertaken by the govemment that * Physical development guided to conditionis reflecting distinctive Business and are critical to its operations through less hazard-prone areas. stonr protection categories of Industry, Fimiancial and after a hazard event, to Private-sector incentives reiniforce structures. determine assistance and guidance appropriate siting and construction that the private sector can provide sta,idards. to the govemment. * Safer building "seal of approval" * Businesses/industry support program developed and development, distribution and use implemented. of hazard maps. * Available hazard maps regularly * Companies have completed Memnbers used in decision making. vulnerability audits of their * Local businesses or technical facilities and support networks. volunteers conduct structural assessments of facilities. Subregional . - - ,,. * Central clearinghouse established * Link between environmental OECS Framrework for hazard mapping and assessment degradation and hazards clearly good practices. stated in regional environmental charter. Inter-Country Collaboration Regional J > , - M 'K __ __ * Regional technical institutions * Central banks provide modeling * Standard vulnerability provide mapping and assessment services for altemative disaster assessment approaches Regional Institutionis assistance to national govemments. impacts. documented. Heads of State of the region support Recomniiended vulnerability andfund this rolefor regional reduction tecihiquiesfor conunon inistitutions. construction practices compiled and available. * Available hazard maps regularly * Mitigation goals incorporated * Available risk information Multilateral Lending Imistitutions, used in decision making. into environmiental protection/ regularly used in decision * Hazard assessment and mapping enhancement projects, and into maklig. Bilateral Donors supported in development environmental assessments for * Risk assessment and mapping programs. other projects (particularly supported in development infrastructure development.) programs. Table I-Risk Identificationt Page 13 Table 2: Risk Reduction - Good Practices Entries in the matrix include both good practices outcomes and instruments. Good practices outcomes indicate the desired state or objective and are designated by bullets (e) and plain text. Good practices instruments are technical and institutional mechanisms that need to be deployed to reach the desired outcome; instruments are described in italics. .' + -+ tlT:l$;*:,; ,ssR- - J e . g | : 2Socio-ec6nozo ic | Environmental Post-disaster Measures 7- .r - ; { Stu t _N1|;Neasures, leasures L V k awl >,- 7 o w r^t*.' 4. ~ 4 r i "S-a & : t _ _ _ _ _ _s . _ _ . Public displays of examples of * Communities question the * Hazard and vulnerability * Mechanisms and knowledge * Appropriate building materials appropniate and inappropriate standards of all new construction and reduction information required to identify (straps, screws, washers, Civil Society hazard-resistant building techniques of major refurbishment projects. incorporated into school environmental degradation galvanize of sufficient gauge) erected. curricula. developed and implemented. available, with proper installation (Communities and their * Poverty-related instructions. organizations) vulnerability identified and * Causes of damages reviewed addressed. and documented. * Communities review the standards of all repairs. Local public infrastructure * No housing in hazard-prone areas * Local environmental regulation * Recovery plans, including constructed outside hazardous areas. or housing resilient to prevalent (e.g. tree cover preservation, land budget estimates, have been hazards. use and agricultural standards) in approved by political leaders. Conmnunity leadership provides place and enforced. members with hazard maps to guide settlements. Policy Relocation policies developed and procedures standardized, Local Government documented and disseminated. * Building Code is published and training courses are held regularly. Public infonnation campaigns conducted to demonstrate code benefits, layman summaries of code requirements available. Technical * Local Committee has * Links established with local emergency contingency plans, environimlental organizations. training and technical skills. Membership inclhdes Local Disaster Committees recognized local leaders. Local Committee regilarlay conducts hazard awareness campaigns in appropri cite media and accessible latnguiage. Table 2-Risk Reduction Page 14 Table 2: Risk Reduction - Good Practices .- Physical Nleasures J Socio-economic J Environmental P Structural Non-Structural N leasures Nleasures I National . All new public buildings conform * Building code is the basis for * Deficiencies in * Environmental management * Recovery plans and actions to appropriate building codes and development approval. Adherence to infrastructure that increase and protection policies and incorporate risk reduction actions. standards. the code is enforced. vulnerability (e.g. inadequate programs include protection for * Financing for immediate Licensing standards tied to building sanitation systems) identified natural systems that stabilize recovery actions identified and code. and addressed. hazardous areas or mitigate available. * Location of housing and hazard effects. infrastructure is guided by land use . Environmental impact plans that incorporate multi-hazard assessments include natural vulnerability reduction measures. hazard considerations and are * A trained building inspectorate is used (enforced) in planning in place, with appropriate powers to decisions. review and control building * Agriculture and forestry Policy standards. practices do not degrade Central Planning and * Development standards are protective natural systems. Sectoral Agencies tailored to hazard effects expected in each island or community (e.g. set storm protection standards to target < 5% average loss/damage to structures in a Class 111 (<125mph) stormii.) * Quality standards for building materials developed and enforced. * Extemal reviews of designs and quality control conducted during construction of all important facilities. Appropriate technical staff across * Sufficient training and budget Technical all agencies are familiar with and provided for proper enforcement of use building code. development and environmental standards. * NDO promotes risk reduction to * Political leaders' roles are * Standards for rehabilitation and all sectors of the government and clear and public expectations new construction of post-disaster National Disaster Office economy. are understood. assets reviewed for adequacy. * Technical experts are available to execute their functions. I Table 2-Risk Reduction Page 15 Table 2: Risk Reduction - Good Practices Physical Nleasures Socio-econonic Environmental , , r t _ s Z *-t'; ~ ' Slructura! Non t ructural lMeasures NKleasures Post-disaster Nleasures -. --~Srtructu'ral ..Non-Structural NesrsM aue * Participate in civic organizations * Hazard information used to . Leaders are active in * Leaders and organizations that promote loss reduction. provide incentives for better preparedness committees and adopt and promote the use of * Coordinate with the govemment development practices. activities.' international standards that on common risk management * Public education and advertising * Companies have disaster reduce the potential impact of concems. support and demonstrate recovery plans, which have disasters and accidents on the vulnerability reduction measures. been coordinated with national environment. Leadership * Companies advertise and offer and local plans. * Leaders and govemient benefits for vulnerability reduction develop compliance standards measures. and measures to reduce vulnerability of the environment to primary and secondary hazard impacts. * 'Seal of approval' for Business and environmentally sound business practices exists and applied. * Technical organizations test, make * Appropriate building materials are * Specialized businesses * Technical organizations * Companies review and adjust Industry available and promote methods for available for sale. (tourism, environmental promote training and research to inventory levels, appropriate to strengthening structures. * Companies identify and promote cleanup) have coordinated reduce environmental impacts. seasonal disaster threats. * In private contracts, include non-structural mitigation measures, response actions with the * Business/industry publicly * Companies have disaster clauses for the use of specific offer demonstrations. govemment. communicates its environmental recovery plans that strive for standards by designers and Low-cost options are offered by * Businesses have tested awareness and practices, rapid re-opening of business and constructors. volwitneers. disaster plans, developed including risk reduction include both on-site and off-site Members * Businesses conduct structural * Insurance premium reductions based on local hazard measures. considerations. assessments of facilities, undertake available for applications of hazard- information. * Appropriate building materials hazard-resistant retrofit as required. resistant building and retrofitting Plans include preparations to (straps, screws, washers, * Community residents with techniques. Businesses negotiate secure employees' homies and galvanize of sufficient gauge) appropriate skills provide insurance contracts in advance of families. Inventtories adjusted available, with proper installation information and services to identify project design, taking into account in recognitioni of seasonal instructions. and solve structural deficiencies. standards and independent reviews of threats * Appropriate building materials compliance. available. See, for example, guidelines at the Center for International Disaster Information (http://www.cidi.com/). Table 2-Risk Reduction Paige 16 Table 2: Risk Reduction - Good Practices 1~~~ [ *z;, P I-; rNet -. -- Physical Nleasures Socio-economic Environmental . P f s Measures ;'''!p-ds.'I o ,*,z,,;, sI --nStructural l- Non-Structural ' lea sures Nleasures- Subregional.. * Model planning legislation * A sub-regional tropical * Sound environmental policies contains provisions for avoidance of cyclone waming system is and practices standardized. hazardous areas and promotion of operational and provides environmental management. warnings to OECS countries. OECS Secretariat supports hartnonization ofplaznring OECS Framework legislation and comrmon guidelines in envirotnnental nanagement. * Vulnerability assessment and reduction techniques included in curricula of universities and technical training institutions. * Promote consistency of development and maintenance of building standards. Iter-Country Collaboration * Mutual assistance protocols between neighbors are in _ ~~~~~~~~place. Regional . . - . - . * All countries have disaster * Provide mechanism for * Model disaster legislation * Conduct and disseminate management legislation. post-event diagnostic surveys contains environmental elements. results of post-event diagnostic CDERA provides support to to determine causes of failures surveys to determine causes of countries in preparing disaster and reasons for successes. failures and reasons for successes. mitigation legislation. Regional Institutions * Provide mechanisms for ongoing hazard research and for development and maintenance of regional building standards. * Vulnerability reduction included in university and technical institution curricula. * Disbursement of funds for all * Environmentally sound . Lending Agencies apply Multilateral Lending Institutions, capital works conditional on certified practices (particularly in relation explicit risk reduction conditions compliance with agreed regional to hazards) used in all operations in post disaster recovery lending. Bilateral Donors standards. and national/regional assistance Funding providedfbr repairs only strategies. if denionstrated improvements are .__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _m a__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ w de to da mnagedfacilities. Table 2-Risk Reduction Page 17 Table 3: Risk Transfer - Good Practices Entries in the matrix include both good practices outcomes and instruments. Good practices outcomes indicate the desired state or objective and are designated by bullets (.) and plain text. Good practices instruments are technical and institutional mechanisms that need to be deployed to reach the desired outcome; instruments are described in italics. ceM ;_ ~ ia'VK unsurance ad Risk Pooling and Rs iacn ., , . ! . l$t l NiBqdj ra ii' t Inrrane an i|Pblic,Asset Co%erage | Di ooicatand | Risk Financing - lM~~nsui~ii~ t~..i-n..-._- :~~ PubliReinsu'roincege Diversirication -,cl t-"a''! .it ,snk,t9tR¢; M\.} t^ : i ^ ,-j, ,'. * Housing-related NGOs offer * All residential and commercial * Promote and implement risk hurricane-resistant home properties are insured to actual reduction measures to reduce the improvement programs with value. need for risk financing. Civil Society revolving loan financing that Legislation niandating insurance include vulnerability reduction for properties valued above .Canuitie and ther oand attention to building certain thresholds. (Coirnmunities and their organizations) standards. * Operators of hurricane-resistant * Churches and community home improvement programs organizations establish organize group insurance contingency funds. programs for participants in their programs. Policy Local govenmment . .- Technical Local Disaster Comnmzitrees Table 3-Risk Transfer Page 18 Table 3: Risk Transfer - Good Practices Budgel Seir nsurance Reinsurance a Public Asset Coverage RiskPooling and | Risk Financing Insurance ~~ReinsurneDiversirication National ._-_- * Gouernnen allexn,t . The inurance reguUIorN * Pollc; deci5ion Io mn;,,re publi, * fluhlc inmurible .,.cah . ernneni ha.e laen on contingent disaster funding in its function is adequately properties to reduce fiscal risk. aggregated under one policy.3 some extemal credits including annual budget, based on actuarial empowered and funded, with Start witlh insuring key economic IBRD/IDA to support probabilities. trained staff for controlling assets, within budget constraints. reconstruction and mitigation for * Government encourages, insurers' fiscal health and * Insurance of public assets, to disaster events. through tax incentives, the catastrophe peril liabilities. minimize fiscal risks, put into Additiontal continigent credit creation of private catastrophe * The insurance regulator effect.2 facilities should also be reserves. oversees the implementation of Pooling would provide lower considered to supplement budgets hazard maps goveming insurers' insurance ptice contracts. Also and to have liquidity otn hand. Central Planning and Policy levels of catastrophe peril see sub-regional approach below. Sectoral Plancies andliabilities. Catastrophe peril * Public fund or mechanism Sectoral Agenicies premium pricing levels recognize established to indemnify poor, individual risk characteristics. with preference for individuals * 'Catastrophe Loss Trust Fund' who undertook mitigation mechanism established, with measures. insurer contributions required. Mechanism to includefundsfor * Simplified insurer classification vulnerability reductio,n measuires. system, based on intemational good practice, devised and implemented. Technical * Pre-funded contingent budgets * NDO promotes risk reduction for emergency response and loss for insurability purposes. National Disaster Office reduction exist. Entergencyfiunds are deployed according to contingency plans, includingfor advance vulnerability reduction actions. * Insurers, lenders, Chamber of * Insurance companies develop * Public autonomous enterprises * Industry-specific (e.g. tourism, * Alternative risk financing Commerce and community and promote schemes that provide are generally insured with private energy) mechanisms for risk mechanisms, such as loan leaders form Advisory Council to incentives for risk reduction. insurers, pooling and financing financing and finite insurance Business atad Industry Leaders insurance regulator with the aim Pooling methods may be mtre established.4 available to assist companies of promoting good insurance appropriate and less expensive recover from hazard events. practices for catastrophe perils for other public assets. and vulnerability reduction methods. 2 Example: Barbados Power and Light. 3 Excludes infrastructure, such as energy facilities and airports, that are covered under specialized policies. 4 Develop regional industry-specific pools, where regional trade organizations exist. Table 3-Risk Transfer Page 19 Table 3: Risk Transfer - Good Practices .* . v . - I' ; ; .. c*^ ,- Z :,,; < . . 1Niarket Insurance and. Risk Pooling and r .-- - . u,dgetSelf Insurance. f t Reinsurance Public Asset Coierage D iversification Enterprises maintain a high * Private commercial properties savings rate, for general self- are insured to actual value. insurance purposes. Legislation nandating insurance Members for properties valued above certaili tihresholds. . Private firms purchase business interruption insurance, as appropriate, to include compensation for employees. Subregional ;T -, .4 * The common insurance * Application of insurance * Mechanism established at the . The use of contingent credit as legislation presently under arrangements for public asset OECS level for risk pooling to a supplementary instrument to development implemented across coverage to be piloted using sub- allow the efficient coverage of market reinsurance should be the region. regional pooling of assets public assets and potentially considered, to reduce price Legislation shouldproatwte, supported by the World Bank. private assets. volatility and maintain backstop OECS Franiework aionig other niornis, additional Currently no suich arrangements capital. risk retention and capital self in place. Sucih arrangemenits, coupled with sufficiency to prevent over- pooling, permit a,i upscaling of leveraging of reinsurance and volumie to mnore significant levels, associated price volatility, wihichi for othenvise very sawll country affects the development of the risk portfolios. industry nationally. . Efficiencies of operation and further consolidation of the Inter-Country Collaboration industry pursued through integration under branch operation, to improve its viability and penetration. Table 3-Risk Transfer Page 20 Table 3: Risk Transfer - Good Practices Budget Self Insurance 1 R insurance a Public Asset Coverage Riik Pooling and 1 isk Financing Reinsurance Div~ersiricatin Regional, *Capltdl oonmtbunon' lo * Regional bcJ) of insurjnce * CARICONI Svieijii.l lo * 1.-,% dedu,II IIiI) of n4 Caribbean Development Bank regulators established and promote risk pooling and resene funds harmonized help to ensure availability of post- empowered to develop diversification at the regional regionally. disaster financing. harmonized risk classification level. criteria for the region. * Regional associations (e.g. * Insurance Association of the CHA, CARILEC) to promote risk Caribbean (IAC) promotes pooling and diversification at the harmonization of insurance regional level. Regional Institutions legislation and documentation within the region and structural risk reduction advocacy by membership. * Oversight role of the IAC revitalized. * Market-based insurance rating agency established to evaluate fiscal health of primary insurance companies and common re- insurers. * Multi-lateral agencies support * Risk pooling efforts Multilateral Lending Inistitutions, harmonization and strengthening implemented at OECS level, as of insurance supervision across potential pilot for Regional Bilateral Donors the region. arrangements.5 * Multi-lateral institutions support regional risk pooling efforts. 5 World Bank project to serve as guide. Table 3-Risk Transfer Page 21 ANNEX 2: SUMMARY OF RISK MANAGEMENT GOOD AND ACTUAL PRACTICES A. Risk Idenlzf.caion Local level Good Practice Actual Practices and Gaps COMMUNITY/CIVIL SOCIETY Hazard Mapping Eastern Caribbean * Prevalent hazards are studied and areas * Comprehensive series of hazard maps recently developed in subject to the effects of the hazards are Antigua/Barbuda and St. Kitts/Nevis. These maps have been presented mapped. publicly. In Antigua/Barbuda, national-scale maps have been distributed * Easy to use hazard maps are publicly to local disaster committees. available for all significant hazards. * Flood hazard maps are available to communities in St. Lucia. * Generally, communities have little access to hazard maps. Jamaica * Community groups in Portland trained in use of hazard maps. * UWI is developing atlases for use by small communities to inform home building and purchase (initially in Kingston/St. Andrew). * Generally, communities have little access to hazard maps. Dominican Republic * Maps for selected hazards available in communities, where they have been developed as part of a time-limited project or where developed by a local disaster committee. Digital information at the national level not available to communities or not available at appropriate scales. Vulnerability and Risk Assessment Eastern Caribbean * Communities are aware of their a Community vulnerability awareness varies with hazard impact history. vulnerabilities. * Some housing and public facilities can be found in hazardous areas * Vulnerable housing and public facilities throughout the sub-region. Schools located in vulnerable locations have located in hazard zones identified. been identified in Antigua/Barbuda, Dominica, St. Lucia and St. * Community groups are aware of the link Kitts/Nevis. Critical facilities generally located in vulnerable locations between environmental quality and identified in Antigua/Barbuda, the BVI and St. Kitts/Nevis. vulnerability, and monitor the local * Knowledge of the links between environmental quality and hazards is environment for degradation. growing. Reported to be strong in Antigua/Barbuda and St. Kitts/Nevis. * Local disaster committees have * Disaster committees are active in most countries, although mechanisms identified highly vulnerable development for channeling information to national-level agencies are weak. In the BVI and infrastructure and convey this and St. Vincent, committees assist with shelter vulnerability assessments. information to government. * Highly vulnerable groups, settlements Jamaica and facilities identified. * Communities assist the disaster office with identification of vulnerable groups and with maintenance of information on emergency shelters. * Disaster committees have been established in most, but not all communities. Dominican Republic * Most population groups are generally aware of at least part of their vulnerability; addressing poverty and other socio-economic problems seen as more important than hazards. * Training of groups to identify and protect environmental systems contained in proposed environmental legislation. * Many highly vulnerable settlements and infrastructure components have been identified, but lack of resources or commitment has impeded the development and implementation of an action plan. Page 22 Local level Good Practice Actual Practices and Gaps LOCAL GOVERNMENT Hazard Mapping Eastern Caribbean • Hazard maps developed and distributed. * Local governments do not exist in most Eastern Caribbean states. * Critical facility inventories compiled and * Comprehensive critical facility inventories have been completed in made available. Antigua/Barbuda, the BVI and St. Kitts/Nevis * In St. Lucia, the Castries City Council has assumed some local disaster management functions, including shelter assessments. Jamaica * Maps and facility inventories completed for selected parishes (e.g. Portland) Dominican Republic * Maps for selected hazards available in communities, where they have been developed under time-limited projects or by local disaster committees. Digital information at the national level not available to communities or not available at appropriate scales. * Inventories of critical facilities generally not comprehensively compiled or available. Vulnerability and Risk Assessment Eastern Caribbean * Vulnerable public facilities, including * Development control and critical facility management is carried out by emergency shelters, identified. Facility the central government. uses appropriate to facility vulnerability. * Vulnerability assessments not typically available to guide decisions * Gaps in development controls allowing about proper and safe use of facilities. development in hazardous areas identified. * Post-disaster assessments not used extensively. * Causes of hazard-related damage are studied and remedies are broadly Jamaica disseminated. * Post-disaster assessments carried out for major events. Studies used to dissLocnallev r guide post-disaster community development activities (Portland). a Local-level risk maps are available, and * ' ~~~~* Communities assist with shelter assessments. local development decisions based on risk information. Dominican Republic * Physical vulnerability information not available for the great majority of structures. * Most development not subjected to development controls. * Causes of damage not typically studied. Page 23 .Nationallevel Good Practice Actual Practices and Gaps GOVERNMENT Hazard Mapping Eastern Caribbean a Hazard mapping procedures and * Hazard mapping activities typically undertaken as part of post-disaster mechanisms developed and initiated. response or as a component of focused projects, presenting difficulties in Information collected is made widely integrating separate hazard maps. Assessments often undertaken by available. Disaster office promotes its use external consultants, with limited local capacity building. in public and private sector investment * A full hazard map series has been developed for the BVI. decisions. Jamaica * Mapping initiatives within the central government and NEPA include the development of map standards. The disaster office refers to and promotes the use of available hazard info. * Hazard maps exist for portions of the country for storm surge, landslide, seismic and flood hazards. Dominican Republic * Adequate maps of rain hazards exist. Wind hazard maps require updating and seismic hazard maps are inadequate. Digital orthophotography is newly available. Disaster office has proposed legislative package to promote the use of hazard information for development and investment decisions. Hazard information not easily accessible. Vulnerability and Risk Assessment Eastern Caribbean * Highly vulnerable populations groups, * Information on vulnerable population groups and facilities available, but facilities and locations identified. Risk use of this information to prioritize risk management interventions is reduction actions prioritized based social, limited. economic and environmental impacts. * Mechanisms for hazard self-assessment and environmental monitoring * Hazard vulnerability self-assessment not widely available and environmental systems are generally not well techniques and environmental indicators protected. St. Kitts/Nevis has conducted community level training on land made available for use by local groups. degradation. Local findings based on these incorporated * Hazard awareness and risk management not well integrated into into government programs. government programs outside of disaster management. * Government programs across all sectors * In the BVI, vulnerability assessments conducted under the Hazard and incorporate hazard awareness and risk Risk Assessment Study. management. Jamaica * Government maintains and uses a aica current inventory of critical facilities, * Environmental indicators developed and tracked at the national level. which includes assessments of * Government lacks a comprehensive inventory of critical facilities. vulnerability. Dominican Republic * Disaster office has identified vulnerable settlements and infrastructure components and is seeking government resources to implement vulnerability reduction measures. * Inventories of critical facilities not comprehensively compiled or available. The disaster office has solicited funds to inventory facilities and conduct vulnerability audits. Page 24 National level Good Practice Actual Practices and Gaps BUSINESS AND INDUSTRY Hazard Mapping Eastern Caribbean, Jamaica Business/industry and government * Hazard map information generally not widely shared between cooperate on a formal process to identify government and business/industry. hazardous areas and critical facilities. * Expertise to conduct vulnerability assessment generally available in * Business/industry share hazard maps and each country. critical facility information with Dominican Republic government and uses such information in o mcnR ubc investment decisions. * Private sector enterprises with international bases generally reference * Business/industry provide expertise to hazard maps in accordance with ISO standards. undertake vulnerability assessments. * Selected enterprises, such as the oil refinery, develop and share hazard information. * Selected private firms and organizations provide technical assistance ___ __ __ _with vulnerability assessments. Vulnerability and Risk Assessment Eastern Caribbean, Jamaica * Primary hazard impacts and remedies * With few exceptions (tourism, electrical generation), comprehensive compiled for each sector, including public hazard impact studies have not been undertaken for most sectors. and private assets. * Safer building certification programs do not currently exist. * Safer building "seal of approval" * Local insurance companies do not typically have sufficient hazard and program developed and implemented. risk information available for comprehensive risk assessments of * Environmental impact assessments portfolios. conducted, including hazard Dominican Republic considerations.DmncnRpbi * Insurance companies conduct and use * Environmental standards established for development, but these are risk assessments for their portfolios, rarely enforced. * Strategic plans, which include hazard considerations, developed in selected communities, under time-limited projects. Sub-r egional, Regional,and International Good Practice Actual Practices and Gaps OECS SUB-REGION Hazard Mapping * A central clearinghouse of information * No such clearinghouse currently exists established for hazard mapping, assessment best practices and available expertise. Vulnerability and Risk Assessment * Link between development decisions, * Hazard considerations prominently included in St George's Declaration environmental degradation and hazard of Principles for Environmental Sustainability in the OECS. impacts given full consideration in sub- a Model physical planning legislation and building code and guidelines regional charters, model documents and address hazard concerns. policies. REGIONAL INSTITUTIONS Hazard Mapping CARICOM * Regional technical institutions provide * Significant hazard mapping and assessment expertise exists within the mapping and assessment assistance to University of the West Indies, but this role is not adequately funded. national governments and are provided funding for this role. Page 25 Sub-regional, Regional and International Good Practice Actual Practices and Gaps Vulnerability and Risk Assessment CARICOM * Central banks provide modeling services m Modeling services for alternative disaster scenarios not currently for alternative disaster scenarios. provided by central banks. * Standard vulnerability assessment * CDB to host vulnerability assessment techniques workshop in late 2002. approaches documented and distributed. The CDB Disaster Mitigation Facility for the Caribbean to direct development of standard methodologies. MuLT- AND Bl- LATERAL LENDING INSTITUTIONS AND DONORS Hazard Mapping * Hazard maps and information regularly * Hazard assessment and mapping programs regularly supported by used in project development and decision organizations such as the World Bank, USAID and CIDA. making. * Hazard assessment and mapping supported in development programs. Vulnerability and Risk Assessment * Hazard considerations incorporated into * Hazard considerations often not fully incorporated into project design. environmental assessments for other projects, particularly for critical facility development. S. RLrk RedwclzŽrn Local level Good Practice Actual Practices and Gaps COMMUNITIES/CIVIL SOCIETY Physical Measures Eastern Caribbean * Information on and displays of * Information on appropriate building techniques have been developed appropriate and inappropriate building and distributed in most countries, although some materials are out of print. techniques widely available. * Communities are often not given the opportunity to comment on new * Communities review and question the construction or refurbishments. standards of all new construction and Jamaica major refurbishments. * CRDC, a Jamaican housing NGO, developed significant safer housing materials, but it is currently not active due to financial constraints. Dominican Republic * "Self-built construction guides" widely distributed. * Communities regularly question the standard of new construction and rehabilitation, typically with little effect. Page 26 -Local level Good Practice Actual Practices and Gaps Socio-economic, Environmental Measures Eastern Caribbean * Hazard and vulnerability reduction * Hazard information generally not incorporated into school curricula. information incorporated into school * Local disaster committees established in most countries, with varying curricula. levels of activity. * Poverty-related vulnerability identified and addressed. Jamaica * Mechanisms and knowledge required to * National environmental education curriculum established. identify environmental degradation * Indicators of environmental degradation developed and available. developed and implemented. * Local disaster committees established and active in most communities. * Local disaster committees established, Dominican Republic with adequate emergency contingency * Ministry of Education has developed texts for various subjects to plans, training and technical skills. include hazard and vulnerability reduction information in the school curricula. * Selected NGOs address the relationship between poverty and vulnerability in development projects. * Significant strides have been taken towards the development and implementation of environmental indicators. * Local disaster committees have been established in many communities, but are non-existent in the majority of high-risk communities. Post-disaster Measures Eastern Caribbean * Appropriate building materials available, * Appropriate building materials are easily available in most countries, with proper installation instructions. with the exception of Grenada. In Dominica, some building materials are * Communities review the standards of all expensive. Proper installation instructions not always available. repairs. Jamaica * Appropriate building materials available at a reasonable cost. Dominican Republic * Appropriate building materials are generally available, but often lack proper installation instructions. LOCAL GOVERNMENT Physical Measures Eastern Caribbean * Local public infrastructure constructed * Some housing and public infrastructure exists in hazardous locations in outside of hazardous areas or made most countries. Hazard-resistant construction and retrofit work often resilient to hazard effects. lacking. Relocation policies not generally adopted. * No housing in hazard-prone areas or * Updated building codes have been developed in Antigua/Barbuda, housing resilient to prevalent hazards. Dominica, St. Kitts/Nevis and St. Lucia. Building regulations have been Relocation policies and procedures adopted and are available in the BVI. A draft building code is in progress standardized, documented and in St. Vincent. Enabling legislation must be passed to adopt most of these disseminated. codes. Significant training and awareness building efforts required. * Building code is published and training Jamaica courses are held regularly. * Significant housing exists in hazard prone areas. Relocation policies under development for specific areas. * Building code adopted in 1983, but is currently being revised. Dominican Republic * Much of the public infrastructure is currently located within hazardous areas. * Vulnerable housing exists in many hazardous areas throughout the country. * The building code is available, but the code does not reference important auxiliary documents, such as the wind and seismic codes. Page 27 Us Local level Good Practice Actual Practices and Gaps Socio-economic, Environmental Measures Eastern Caribbean m Local environmental regulations in place * Enforcement of development and environmental controls often weak. and enforced. - ~~~Jamaica * The majority of buildings are not reviewed via the formal planning system. Dominican Republic * Environmental management / protection policies and programs are in place, but most are unenforced. Post-disaster Measures Eastern Caribbean * Recovery plans, including budget * Few recovery plans have been developed. estimates, have been developed and approved by political leaders. JamalLca * Over half of government agencies have disaster plans. Dominican Republic * Few recovery plans have been developed. National Level Good Practice Actual Practices and Gaps GOVERNMENT Physical Measures Eastern Caribbean * Building code, tailored to local hazards, * Building codes have been developed in all countries, except for St. is the basis for development approval. Vincent. Code enforcement and inspection is generally weak, even where Adherence to the code is enforced. A appropriate enforcement powers exist. Training courses for building trained building inspectorate is in place, inspectors have been held recently for Antigua/Barbuda and St. with appropriate powers to review and Kitts/Nevis. control building standards. * Most new public buildings conform to codes and standards. * All new public buildings conform to Government buildings in Grenada not held to code. appropriate building codes and standards. * Land use plans and controls are often weak. Appropriate technical staff in all agencies * Standards for building materials lacking in most countries. familiar with and use the building code. Jamaica * Location of housing and infrastructure is .Builco guided by land use plans that incorporate * Building code is in force, but inspection capacity is limited. multi-hazard vulnerability reduction New public buildings conform to building code. measures. * The majority of housing is built outside of formal land use and building * Quality standards for building materials control. developed and enforced. * The Bureau of Standards has developed standards for building materials. Dominican Republic * The building code is the basis for development approval, but there is little enforcement of the code. Currently both the wind and seismic codes are being upgraded. A trained building inspectorate has been proposed. * Designs of important facilities are reviewed, but there is typically little control over the building process. * The majority of development is not subject to development controls. * Quality standards have been developed for about half of the standard building materials, but there is little control of the quality of these materials. Page 28 Natifonai Level Good Practice Actual Practices and Gaps Socio-economic and Environmental Eastern Caribbean Measures * Environmental management policies and measures generally weak. * Deficiencies in infrastructure that * Agriculture and forestry practices often contribute to environmental increase vulnerability identified and degradation. enforced. Jamaica * Environmental management / protection mEnvironmental protections developed. policies include protection for natural systiems that stabiz zrd area * Impact of forestry practices on flooding and landslides under systems that stabilize hazardous areas or ivsiain mitigate hazard effects. investigation. mitAgaculture hazand forestr practicsdonot * Environmental degradation results from agricultural, coal- and wood- * Agriculture and forestry practices do not fire buring and settlements. degrade protective natural systems. Dominican Republic * Many deficiencies in public infrastructure exist, but limited resources and political commitment constrain improvements. * Environmental management / protection policies and programs are in place, but most are unenforced. * Agriculture and forestry practices often degrade natural systems due to obsolete technology and limited enforcement of controls. Post-disaster Measures Eastern Caribbean * Recovery plans and actions incorporate * Few recovery plans have been developed. risk reduction actions. Janaica * Standards for rehabilitation and new haica construction of post-disaster assets * Over half of government agencies have disaster plans. reviewed for adequacy. Dominican Republic * Few recovery plans have been developed. * Standards for post-disaster rehabilitation and new construction reviewed, at times, for adequacy. BUSINESS AND INDUSTRY Physical Measures Eastern Caribbean, Jamaica * Business and industry coordinate with * Business and industry represented on disaster coordination mechanisms government on common risk management in a number of countries. concerns. m Private sector facilities typically conform to building codes, particularly * Construction of private sector facilities when built with mortgage funds. conforms to building code and standards. * Appropriate building materials generally available (except Grenada) * Appropriate building materials available * Some insurance agencies and building materials suppliers promote safer for sale. building activities. * Technical organizations test, make * In Jamaica, some private firms, such as the Grace Kennedy group, available and promote methods for regularly assess the vulnerability of their buildings and structures. structural strengthening. * Hazard information used for Dominican Republic development decisions. * Construction by private sector enterprises with international bases * Public materials and advertising support conforms to building code and standards. and demonstrate vulnerability reduction * Appropriate building materials available for sale, but often without measures. Incentives provided for safer installation instructions. construction. * Selected large corporations and enterprises regularly use hazard information for development decisions. * Selected corporations and insurance companies develop materials for and promote vulnerability reduction measures. Page 29 Nationa Level ;, - Good Practice Actual Practices and Gaps Socio-economic and Environmental Eastern Caribbean, Jamaica Measures * Seal of approval programs not currently instituted. a International standards that reduce the Dominican Republic impact of disasters and accidents on the DmncnRpbl environment o sadted andaccidents promothed * Most private sector enterprises with international bases follow en"Sealnofeapprovaltfor environmentall international guidelines (such as ISO) which incorporate environmental * Seal of approval" for environmentally poeto esrs sound business practices developed and protection measures. implemented. * Business and industry public communicate environmental awareness and practices, including risk reduction measures. Post-disaster Measures Eastern Caribbean * Companies review and adjust inventory * Only building materials suppliers and hotels typically adjust inventory levels, appropriate to seasonal disaster levels according to seasonal disaster threats. threats. * Companies have disaster recovery plans Dominican Republic thComa niesrhfor did r engfvery * Just-in-time setup and the availability of shipping containers has more and include both on-site, off-site and impact on inventory levels than do seasonal disaster threats. employee considerations. * Most larger private sector enterprises with international bases have designed and implemented some contingency planning. Sub-regional, Regional and International Good Practice Actual Practices and Gaps OECS SUB-REGION Physical Measures * Model planning legislation contains * Technical training institutions construction programs include safer provisions for avoidance of hazardous building techniques. areas and promotion of environmental * National and regional planning, environmental legislation and building management. standards need further harmonization. * Vulnerability assessment and reduction techniques included in curricula of technical training institutions. * Planning legislation, environmental management legislation and building standards harmonized. Socio-economic and Environmental Measures * Mutual assistance protocols in place between neighbors. * Sound environmental policies and practices standardized. Page 30 Sub-regonal, Regional and, Inernationa, . . . Good Practice Actual Practices and Gaps REGIONAL INSTITUTloNS Physical, Socio-economic and CARICOM Environmental Measures * Disaster management legislation under development in most countries, * All countries have disaster management with assistance from CDERA. legislation, incorporating environmental * Standard mechanisms for post-event diagnostic surveys not currently in elements. place. CDERA documented best practices in recovery efforts after * Mechanisms for ongoing hazard hurricane Lenny. ECLAC has developed useful surveys for post-event research and for maintenance of regional economic impact assessment. building standards developed. * Vulnerability assessment and reduction techniques included in curricula of universities and technical training institutions. * Mechanisms for post-event diagnostic surveys to determine causes of failures and reasons for successes developed and implemented. Post-disaster Measures CARICOM * Post-event diagnostic surveys conducted to determine causes of failures and reasons for success. Results disseminated broadly. MULTI- AND BI-LATERAL LENDING INSTITUTIONS AND DONORS Physical, Socio-economic and Environmental Measures * Disbursement of funds often not contingent on compliance with * Disbursement of funds for all capital building standards. works conditional on certified compliance with agreed regional standards. Post-disaster Measures * Lending agencies apply explicit risk * Post-disaster recovery lending often focused on rapid recovery, rather reduction conditions in post-disaster than risk reduction. recovery lending. Page 31 C Rir-k T7 ransfer ..Loclevel Good Practice Actual Practices and Gaps COMMUNITIES/CIVIL SOCIETY Self- and Market Insurance Eastern Caribbean and Jamaica All residential and commercial * Commercial properties with remaining mortgage balances typically properties insured to actual value. insured. Many middle and upper income properties insured. The majority * Housing-related NGOs offer hurricane- of lower income properties are not insured and many are uninsurable. resistant home improvement programs. There is no compulsory insurance coverage. Group insurance programs available to * Hurricane-resistant home improvement programs exist in selected participants. countries. Group insurance programs generally not available for lower income groups, St. Lucia excepted. Dominican Republic * Few residential and commercial properties are insured or only insured to the remaining balance of the loan. * Hurricane-resistant home improvement programs offered in selected communities through limited-term projects. National Level Good Practice Actual Practices and Gaps GOVERNMENT Self- and Market Insurance Eastern Caribbean and Jamaica * Government allocates contingent * Governments do not typically allocate contingent funds, although some disaster funding in annual budget, based on countries have funds available at the Central Bank for contingencies. actuarial probabilities. * Insurance regulatory function exists and is staffed, but typically staff * Insurance regulatory function is lacks appropriate training. adequately empowered and funded, with * Insurance regulators do not have available hazard maps for reviewing trained staff. catastrophe peril liabilities. * Insurance regulator oversees * Insurer classification system not implemented or consistent. implementation of hazard maps governing * Disaster offices promote risk reduction, but not typically for insurability insurers' level of catastrophe peril purposes. liabilities. * Simplified insurer classification system, Dominican Republic based on international best practices, * Government does not currently allocate contingent disaster funds. devised and implemented. Legislation proposing this is pending. * National disaster office promotes risk * The insurance regulatory function is adequately empowered, with reduction for insurability purposes. trained staff. * The insurance regulator does not oversee implementation of hazard maps used for assessing catastrophe liabilities. * Work is currently underway with international rating company to develop a new insurance classification system. Page 32 National Level Good Practice Actual Practices and Gaps Public Asset Coverage and Pooling Eastern Caribbean and Jamaica * Government makes policy decision to a Typically only selected government facilities insured. St. Kitts/Nevis insure critical public properties to reduce has made policy decision to cover all assets. Risk pooling not typically financial risk. Risk pooling used to lower used. insurance price contracts. * No public fund/mechanism exists to indemnify poor. * Public fund or mechanism established to * Properties owned by statutory bodies often insured. indemnify poor, with preference for individuals who have undertaken risk Dominican Republic reduction measures. * Government does not insure all critical public properties. Proposed legislation would require budget reserves to insure public facilities. * No public fund/mechanism exists to indemnify poor. Risk Financing Eastern Caribbean and Jamaica * Government has taken on some external * Most governments do source external credit for reconstruction and credits to support reconstruction and mitigation efforts, typically from commercial lenders. mitigation for disaster events. BUSINESS AND INDUSTRY Self- and Market Insurance Eastern Caribbean and Jamaica * Insurers, lenders, and community leaders * Insurance advisory councils do not currently exist. form advisory council to the insurance * Self-insurance is often limited due to fiscal constraints. regulator. * An increasing number of insurance companies have developed and * Enterprises maintain a high savings rate, promote schemes that provide risk reduction incentives. for general self-insurance purposes. * Private commercial properties covered by commercial mortgages * Insurance companies develop and typically insured. A limited number of companies purchase business promote schemes that provide risk interruption insurance and employees are not typically covered in these reduction incentives. policies. * Private commercial properties insured to Dominican Republic actual value and companies purchase * Representative of private insurance companies participate on an business interruption insurance, asinuacadsoybr. appropriate, to include coverage for insurance advisory board. employees. * Generally, companies do not maintain savings for self-insurance purposes. * Insurance companies often provide technical assistance to clients for risk reduction. * Private sector enterprises with international bases typically have insurance coverage. Public Asset Coverage and Pooling Eastern Caribbean and Jamaica * Public autonomous enterprises are * Public autonomous enterprises are generally insured. generally insured with private insurers, * Risk pooling rarely used. with risk pooling used where available. * Industry-specific mechanisms for risk Dominican Republic pooling and financing established. * Public autonomous enterprises do not generally insure their assets. * Private sector enterprises with international bases typically participate in worldwide policies that cover assets and activities in the Dominican Republic. Risk Financing Eastern Caribbean and Jamaica * Alternative risk financing mechanisms, * Alternative risk financing mechanisms rarely used. such as loan financing and finite insurance, Dominican Republic available to assist companies recover from Alternative risk financing mechanisms rarely used. hazard events. Page 33 Sub-regional, Regional a'nd Internalional Good Practice Actual Practices and Gaps OECS SUB-REGION Self- and Market Insurance OECS * Common insurance legislation * Common insurance legislation is under development. implemented across the region. Public Asset Coverage and Pooling OECS * Mechanism established at OECS level for risk * World Bank has developed a proposal for such a mechanism. pooling to allow efficient coverage of public, and potentially private, assets. Risk Financing * The use of contingent credit as a supplementary instrument to market insurance considered. REGIONAL INSTITUTIONS Self- and Market Insurance CARICOM * Regional body of insurance regulators established * No common insurance legislation in effect in the region. and empowered to developed harmonized risk Caribbean Association of Insurance Regulators (CAIR) classification criteria. established, but its activities are severely limited by financial * Insurance Association of the Caribbean (IAC) difficulties. promotes harmonized legislation and * IAC promotes harmonization, but with limited success documentation. (exceptions: Jamaica, Barbados, Trinidad/Tobago) * Market-based insurance rating agency established to evaluate fiscal health of primary insurance companies and common reinsurers. Public Asset Coverage and Pooling CARICOM * Risk pooling and diversification promoted at the * A proposal for a regional risk pool mechanism has been regional level by CARICOM and within individual developed by the World Bank. sectors by regional trade associations. * Regional bodies have promoted risk pooling, but with limited effect. Risk Financing * Tax deductability of risk reserve funds harmonized regionally. MULTI- AND BI-LATERAL LENDING INSTITUTLONS AND DONORS Self- and Market Insurance * Multi-lateral agencies support harmonization and strengthening of insurance supervision across the region. Public Asset Coverage and Pooling * Multi-lateral institutions support regional risk pooling efforts. Page 34 Natural Hazard Risk Management in the Caribbean ANNEX 3: ASSESSMENTS OF RISK MANAGEMENT ACTUAL PRACTICES Page 35 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps ANTIGUA AND BARBUDA Page 36 Antigua and Barbuda Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. * **~~~~~ ~~~ ~ ~ ~~~ *VuI~~' nerWblft~~YAssessnient j;g. - S&gii-ecd n ic X1- Environmental 1 . Risk Assessment - L_. 1 - - -: - :I . ic. -: E-t-a- Loca I... Hazard maps prepared for drought, Caribbean Conference of Churches Inventory of critical facilities un- Individuals in communities have hurricanes, wind, flood, and earth- working with NODS to advance dertaken and most important as- valuable knowledge of protective quake hazards. mitigation in a pilot project in sessed in detail. value of environmental systems Persons in community with histori- Crabb Hill NODS working with Public Works and historical information of how cal knowledge used to supplement Discussions with Antigua & Bar- to assess remaining critical facilities they function during actual hazard scientific studies to identify hazards buda Hotel Association to help and identify remedial work needed. events. and vulnerable areas. disseminate hazard information. Damage history compiled for criti- Local knowledge communicated Crabb Hill, Grays Green and Lib- Vulnerable groups identified in cal facilities under PGDM. to national institutions via the Civil Society erta communities trained to identify Antigua and Barbuda. District Disaster Cokmittees and Civil ~~~~~~~~hazard risks and how to deal with Much existing housing and devel- departmentshike Fishwreris andke (Communities and their them at local level. Some commu- opment, including criticalfaciliies deanvronment. organizations) ~~~nity training also completed in and infrastructure, already exists in Barbuda vulnerable areas. Community groups trained to Training in identification of haz- Inappropriate use of some emer- recognize legal extent of Envli- ards and dealing with them not yet gency shelters due more to cultural ties conducted in all comtnunities. traditions rather than lack of public Lock offonmal trainingfor corn- information. munity groups to identify and protect critical environmental systems. Policy Hazard maps completed in 2001, Inventories of critical facilities also available to Barbuda Council. completed in 2001 as part of com- prehensive hazard vulnerability Local Govemnment assessment done under the PGDM Technical and available to Barbuda Council. Structural Vulnerability assess- ments done for selected government facilities in Antigua and Barbuda under the PGDM. District Disaster Committees in Disaster committees in Antigua and Antigua and Barbuda all provided Barbuda identified vulnerable Local Disaster Committees with hazard maps for their areas. groups. Some training done in use of the maps. Page 37 Antigua and Barbuda Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. za' Ass sme n d and 'p inerability Assessment ' ____________________ ___________Iocconomic ^slical Environmental] National National Mitigation Council estab- Government agencies not yet Hazard maps used in conducting Inadequate nonitoring of envi- Barbuda Council provided with lished and chaired by Minister of prioritizing mitigation measures. Development Potential and Site ronimental quality. hazard maps for Barbuda. Planning and Implementation. NODS to meet with agencies to Suitability analyses and to identify Development standards applica- achieve this and get them to budget areas suitable for built develop- ble to Barbuda. for these measures and submit to ment. Ministry of Finance and Natio,nal National Physical Development location of development in Bar- Policy Mitigation Council. Plan and St. John's Local Plan buda. provide policy guidance for steering development away from hazard prone areas. Hazard vulnerability assessnients not incorporated into project ap- praisal process. National Mitigation Technical Agricultural Extension Officers Repairs carried out on majority of Government agencies do not Committee established. assist farmers to identify practices critical facilities (CF). maintain current inventories if Hazard maps prepared by local and that degrade the environment and Some CFs abandoned because of physical assets besides buildings. foreign consultants. appropriate mitigation measures, severity of damage. Central Planning and Development Control Authority Development standards prepared Sectoral Agencies (DCA) incorporated maps into GIS for hazard resistant construction. database. Standards widely disseminated via Hazard mapping done largely by 'Build Strong' pamphlet. foreign consultants with limited Major sectoral agencies provided opportunityfor transfer of technical with hazard maps (Environment, skills. Fisheries, Agriculture, DCA). Pub- Technical Technical officers wit/a some hazard lic works will get when their com- mapping skills in DCA but profes- puters upgraded and Finance re- sional staff not adequately trained quested only database. to initiate and guide their work. Structural vulnerability assessments done for selected govemment facili- ties in Antigua and Barbuda under PGDM. Support for appropriate develop- mnent standards not widespread. Many development projects bypass the regulatory agencies and are not subject to required scrutiny. Page 38 Antigua and Barbuda Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are-described in plain type and gaps or limitations are listed in italics. r 4^ .Hb 9tHzard Assessment7and '__ | _______ _sessn_en| RiskAssessment | : ap Pi 4 4. 1 Q7~T Ph~,sic Environmental NODS prepared Build Sirong NODS identified %ulnerable eoin- NODS mainiain. dJ.basoe oi cnli pamphlet and conducted workshops munities and priorities areas for cal facilities and vulnerability as- on Building Code for Inspectors, training. sessments. Further analysis of other contractors and builders. Vulnerability reduction strategies important buildings and structures NODS made hazard maps available implemented in some vulnerable continuing with assistance from to major sectors of govemment, communities. P"VD National Disaster Office according to their needs. NODS is in discussions with Hotel Association for their assistance in disseminating hazard infomnation to their members. NODS using media and calypson- ians to help promote public aware- ness. NODS attempting to establish Hazard implications and remedies Some attempt to protect environ- working relationship with new not compiledfor sectors. mental systems by some develop- leadership of Chamber of Com- Less than 10 percent of commriercial ers. mere. businesses carry business interrup- ElAs carried out by some devel- Hotel Association assists in identi- tion insurance. opers (often reluctantly) when Leaders fying facilities critical to economy. requested by the DCA or Envi- Inportant commercial sector in St. ronment Division. John's as yet has nofomal process for identifying facilities and ser- Business and Industry vices critical to economic develop- ment and interventions to be taken during and after a hazard event. Insurance companies request access Many businesses less concemned to hazard maps, but for use in set- with enviroz,nmental issues than ting premiums according to area's withfinanicial bottom line. Members vulnerability. NODS resists. EMAs often viewed as an addi- Hazard maps not regularly used in tional development cost that decision making. developers should not have to inicuPr. Page 39 Antigua and Barbuda Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. @. d J| -Physical Measures I T Socio-econonmic Environmental Post-disaster Measures Local j- :: :. :: - :-: : - : -:: -. :. ::Non-Structural 1 Mesures:easures Loca Examples of hazard resistant con- Appropriate hazard resistant con- Hazard and vulnerability Appropriate building materials struction by private sector and indi- struction techniques available to reduction infornation incor- available commercially. vidual developers. builders and are widely used. porated into programmes at Habitat for Humanity housing pro- NODS plans to train members of the State College, Technical Civil Society grammes incorporate building tech- District Disaster Commnittees as and Vocational Training Cen- niques. monitoring officers. tre and the Youth Skills pro- (Commtunities and their gramme. organizations) Individual builders sufficiently Pattenis of land ownership nmay be a sensitized now to request confirma- factor in causing people to build in Hazard and vulnerability tion from NODS that structural vulnerable areas despite knowledge reductioni infonuation not yet details proposed by their engineers of vulnerability. infused into curriculum of meet Code requirements. prinmary and secondary schools. Policy Local Government Technical Local disaster committees in Antigua and Barbuda have general disaster plans that emphasize preparedness and response. NODS now focus- ing on helping them to de- Local Disaster Committees velop a mitigation component, especially mitigation measures that can be taken on by the communities. Community disaster plans lack mitigation component. PaRe 40 Antigua and Barbuda Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. *~~4r~~ - ~ ~ ~ NIF~~~ ~ ~ 1Socio-econonme Envirommental Potds te Neau s W.g;-4 I>3w1> ^ | 1L1} "1 Post-disaster Nleasuaes National New public buildings constructed in Conformity with Building Code and Infrastructure deficiencies Policies developed for protection Post disaster actions incorporate accordance with Building Code. location criteria increasingly impor- identified in National Physical of environmental systems like reduction measures. Insufficient attention to location and tant in granting development approv- Development Plan and St. reefs, mangrove, sand dunes and Sources of finance available for vulnerability criteria in sitrig infra- als. John's Plan. beaches. post disaster recovery from re- structure. Building inspectors from DCA and Attempts to use EtAs as tool for gional institutions at lower inter- PWD trained in use and importance decision making in projects with est rates and local sources such as of Building Code and Standards and potential environmental impacts Insurance Companies. location criteria. becoming more widespread. Housing improvement loans Increased monitoring of development ElAs are not a legal requirement available from some local finan- in vulnerable areas by DCA inspec- for developers until draft new cial companies and credit unions tors. planining legislation is approved. provided there is a mitigation Rudimentary attempts made to in- Lack of proper environnuental component e.g. use of hurricane corporate hazard maps and vulner- monitoring system in Barbuda. straps. ability assessments into site suitabil- ity analyses during preparation of the National Physical Development Plan to identify areas (un)suitable for built development. Central Planning and Antigua and Barbuda Draft Natural Sectoral Agencies Policy Hazard Mitigation Policy and Plan prepared under PGDM in 2001. Lack of approved National and Local Physical Developnent Plans to pro- vide legal backingfor locational policies. Inadequate legislative frameworkfor physical planning. Need to approve and adopt Draft Physical Planning Bill and EIA regulations. The planning systent does not now cover Barbuda which as no devel- opment control process. The council wants to implement buildintg stan- dards but lacks the institutional capacity to do so. Thte Builditg Inspector on the Bar- buda Council deals only with inspec- tion of public-not private- buildings. Page 41 Antigua and Barbuda Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ;It. . .>i-..Physical Measures Environmenlal .*.s . ,* ,,Structu ral _ . . ' . Non:Struclural - _ 1v1easu res l leasures Post-disaster Nleasures ~~~~ -. _ - M~~~~~~~~~~~~~~~~~Neasures Nleasures Technical staff in major agencies Some training conducted under Lack of dialogue between key Study of the effects of Huricane trained in use of Building Code and PGDM to provide staff with skills for technical agencies in Antigua Luis on the Antigua Public Utili- have ready access to Code. proper enforcement of development and personnel on the ground ties Authority conducted under Tecinical Inadequate monitoring and interven- standards. in Barbuda. the CDMP. tions by DCA. Insufficient training and budgetfor enforcement of development and environmental standards in Antigua anid in Barbuda. Some technical expertise NODS reviews standards for National Disaster Office available. post-disaster rehabilitation and new construction. Construction industry working with Many businiesses do not de- NODS to ensure quality control of posit copies of their disaster imported building materials and to plans withi NODS and ques- adopt better practices for storing tion the authority of NODS to materials. request them. Leadership Disaster plans prepared by hotels are at best hurricane plans and not considered to be adequate by NODS. Businesses do not have recov- ery plans. Appropriate building materials avail- Some businesses have disaster able for sale nationally. plans. NODS has copies of Some construction related companies approximately 9 plans from Business and conduct public workshops to demon- private sector companies. Industry strate appropriate techniques. Hotels that are members of the Individual insurance companies Antigua Hotel and Tourism employ officers to inspect buildings Association have basic disas- to ensure conformity with ter plans based on the CTO Code/Standards before insuring Hurricane Plan Members them. Some insurance companies use checklist to encourage potential clients to implement risk reduction measures. Conformity to Code can result in premium reductions of up to 40 percent. Commercial businesses put aside funds to finance recovery efforts and repair damage. Antigua and Barbuda Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ..F u Se n 'Piiliuic Asset I Ri Pooling and Di | Risk Financing L _ . - _ _I_ -, A - :- lic A::et C'''r:'; L ocal,, . *_ _ _ __ _ _ _ _ _ There is nofornal altemative There is no group insurancefor Tlhere is no riskfinancing merica- mechanisms to insurance be it horneowners. Homeowners and nisin that allows losses to be paid contingency credit or contingency investors depend entirely on the off in theffuture thirough credit equity. property insurance nmarket, al- facility. A few churches and non-formal though some carriers cannot buy Commercial properties, particu- organizations ("hand") operate a adequate reinsurance. larly hotels that are part of inter- "loose" form of self- Most properties in the middle and national chains, may be using risk insurance/welfare for their parish- upper income groups are compre- financing options that allow ioners and partners through sys- hensively insured to actual value multi-year coverage that would tematic savings.' as this forms part of the mortgage result in stabilizing premiums. Some other sectarian groups build agreement. up contingency funds for provi- Income loss by owners has re- dential purposes. sulted in about 50% under- Civil Society NGOs are not involved in housing insurance of non-encumbered (Communities and their organizations) or property developmuent property. 2 About 50% of properties in the lower income group are insured. 3 Moreover, apart from vulnerabil- ity to hurricanes (given the topog- raphy of the island), there are few hazard-prone areas. Unlike the motor insurance indus- try, there is no compulsory insur- ancefor private properties. Given the islands' vulnerability to hurricanes and volcanic actions, there is need for comnpulsory insurancefor properties. [There is no local govemment Policy body. All activities are prosecuted Local governnent by a national agency. ] Technical Local Disaster Committees 1 This non-formal traditional contingency institution still lingers in some rural communities. Many of these institutions have evolved into credit unions. 2 Estimates provided by Mr. Robert Josiah, Acting General Manager, Sate Insurance, Antigua and Barbuda. There is no evidence of provisions for alternatives to insurance. Households are simply assuming the liabilities. 3Ibid. State Insurance - the major carnier - provides accessible premium rates. Page 43 Antigua and Barbuda Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. l i E; K N;;: ' ; -1 BuAgetarket Insurance and 1sPublic Asset Coverage Risk Pooling and Di- 1 Risk Financing Budget Self Insuanc ;, - 1.'Reinsurance versirication National .. ..:-- :...., -- -.... ... ..... Govemment does not allocate The insurance regulatoryfmsnction Government has no policyfor The public assets which are in- Govemment sources extemal contingencyfunds in its annual is very inadequiate. The office is insuring public assets. sured include: credit for reconstruction and budget based on actuarial prob- very poorly staffed, poorly The public properties, which are * VC Bird International Air- mitigation efforts. Most debt abilities equipped and poorly staffed. Staff insured, are covered under the port capital is sourced from commer- Fiscal difficulties do not allowfor lacks expertise in risk manage- specific loan conditions and lease * Holberton Hospital cial lenders. such budgetary allocations. NB: nuent. arrangements. * The Antigua Recreation Additional continigent credit This remains a serious causefor Some aspects of planning, zoning There is no publicfuind or Grounds (ARG) facilities could incilude: concern given the vulnerability of and hazard mapping (hazard mechanismi established to i,idem- * The Free Zone (i) World Bank Ecottomnic Recov- the islands to natural disasters. mapping for flooding and land- nify the poor or to provide incen- Premiums are paid annually. ery Facility Governmrent will be expected to slides) are being done by the tive for undertaking mitigation NB: All other public assets are (ii) CDB Disaster Mitigation encourage tax inceiztives whten Physical Planning Department. measures. N:Alohrpbi sesae (i D iatrMtgto the Catastrophe Pool is estab- However there are no hazard not insuired. Facility Central Planning and Policy lished under The World m-aps governing insurer's levels Govemment needs to explore the Sectoral Agencies BankWCDB OECS and Barbados of catastrophe peril liabilities, no feasblt f Catastophe Rsk Mangement functional linkage between the (i) Investing in continzgency credit CatastpSicaleplanningaandheicoritingency equity to in- and Insurance Reform Project. pyia lnigai leisr n ance regulation. crease liquidity for rehiabilitating damaged buildings, schools, The insurance regulator needs to: hospitals, waterfacilities, ports, (i) have the capacity to do catas- roads bridges using credit and trophe premium pricing. capital market instrnwents. (ii) educate with respect to reduc- (ii) Providing incentivesfor ca- ing thefinancial impact of events tastrophe risk coveragefor low- and minimizinig the probability of income groups particularly those avoidable losses. occupying areas prone to land- slide such as squatters. Technical Budgetary allocations are made NODS promotes risk reduction towards the National Office of through the national committees, Disaster Services (NODS) only public education and awareness for operations. No entergency programs mainly duning the hur- funds are deployed for contingen- ricane season. cies. NODS needs to: National Disaster Office NODS depends largely opt inflows (i) embark on a broad based front regional and international insurance, risk management and donors in the afterntath of a dis- disaster preparedness education aster. programme (ii) enmphasize retrofitting, nain- tenance and building standards and insurance coverage. PO'- 44 Antigua and Barbuda Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Budget Sel Insurance Niarket Insurance and Risk Pooling and Di- Rs iacn f B udget , Reinsurance Public Asset Coverage ersiicaonRisk Financing The National Development Foun- Some insurance companies, in- Public autononous enterprises Tourism: Thiere is no risk trans- dation is involved in safer hous- cluding State Insurance Company under the management of the fer mnechanism or self- insurance ing training and a revolving loan (the major property insurance central government such as Water for locally owned properties. fund for home retrofit. carrier) and ANJO (United) pro- and Electricity are not adequately Joint purchase of irisurance cov- vide incentives to homeowners, insured because offinancial erage is an imperative (given the such as lower premium rates for difficulties. si,nilar exposure) to lower cost risk reduction, and does some risk Statutory bodies such as the Port through increased portfolio. assessment and management Authority building, Antigua Pub- Business annchecks. lic Utilities Authority (APUA) Business and Industry, Leaders and the Social Security Building Financial are insured by State Insurance to their actual value. Pooling ,nethod would most be appropriatefor these enterprises. These are to be covered under The World Banzk/CDB OECS and Barbados Catastrophe Risk Man- agement and Insurance Refonn Project. Page 45 Antigua and Barbuda Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. - Ni~~~~~~~~~~arket Insurance and Rs oln n i :i4<~ . - . . Budget Self Insurance R.. Public Asset Coverage Rsing an i- Risk Financing Reinsurance v'ersification Leadersihip should be provided by About 100% of company build- private enterprises that are lead- ings are insured to actual value ers infinancial ,nanagenzent because the terms and conditions particularly the insurance comi- of the debt capital require build- panies - in tihis case, State Insur- ing standards are strictly adhered ance Company. to at all stages of the construction. About 100% of company build- ings are insured against all perils and are built in accordance with building standards. 4 In most cases, commercial prop- erties are insured to their actual value to meet the conditionalities Members of the overdraft facilities. Some coverage is taken for busi- ness interruption, as the business sector has depended very heavily upon inflows of insurance claim payments for rehabilitation. Privatefinns do not cover com- pensation for employees. There is need for legislation to enforce the insurance of private property. There is need for more forward planning by the private sector. References The information on risk transfer practices is the product of: (I) The consultant's first hand knowledge of the OECS insurance market, having being involved in market development since 1991. (2) Research on the insurance market, govemment planning and macro-economic policies, sub-regional disaster agencies, the private sector and NGOs in mitigation efforts. (3) Discussions with market players in insurance, regulation, planning, and disaster mitigation including: * Mr. Robert Josiah, Acting General Manager, Sate Insurance, Antigua and Barbuda. 4Estimates provided by Mr. Robert Josiah, Managing Director, Sate Insurance, Antigua and Barbuda. P-,.., /A Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps BRITISH VIRGIN ISLANDS Pave 47 British Virgin Islands Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. :q,41 O"HazirdlAssesg'fit-ni -an.l Vil&rW abilitv.Assessrnent z3ig a '@ r4 %liX >S tSrdtj,'i v,,r,,s;i' @uneablivAssessimebtnfrd' ,A,__, ' Risk Assessmen^. e I Am#z|j;isR|5a P |ciSocownonornucl;rghysicl * Env.ironnmental __ c I Enio''a Local Population groups are aware of Communities are aware of their Public awareness of vulnerability. Communities aware of vulnerable local hazards. vulnerabilities. Uncontrolled grazing by styray groups and facilities. Community groups have access to Built development exists in vulner- animals causes some environi- hazard maps at the office of the able coastal and hillside locations. omental degradation. Civil Society Department of Disaster Manage- (Communities and their ment (DDM). organizations) Hard copies of hazard maps not yet made available to the public. Hazard risk assessment not done at community level. Local Government 10 Zonal Conimittees throughout Committees assist DDM to dis- Committees assist in evaluating Zonal Committees can access the BVI. Had formal training in seminate information to communi- adequacy of shelters and ensuring digital copies of hazard maps at hazard awareness and findings of ties. they are well maintained. office of DDM. Local Disaster Co,nnittees 1997 Hazard and Risk Assessment Study. Hard copies of hazard maps not yet made available. Pave 48 British Virgin Islands Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. SLPT;sF r- '_@jm,T ;.,",,z'i:' H-,zard;Assessment and Vulnerability Assessment V,:,:~ ~ ~~SxPnom,=|s4l , 1Zhsc! . Ewomna Risk Assessment ** ,~~~~N1a~~ing ~~ .. l~WwA icei Environmental [ National National Emergency Advisory Govemment agencies have identi- Some policies exist to protect Risk maps available for prevalent Council set up in 1980s, chaired by fied vulnerable groups. environment. hazards including storm surge, the Director of Public Works. In- Human Vulnerability Assessment Private sector marinas assist in floods, liquefaction, landslides cludes a Mitigation and Damage on-going in collaboration with protecting mangrove. and high velocity winds. Assessment Sub-Committee. social sector agencies. School projects assist in replant- Comprehensive Mitigation Plan- ing mangrove. ning Framework prepared and submitted to Executive Council for Damage to coral reefs and man- approval in March 2002 after re- grove caused by coastal develop- ceiving comments from technical ,ne,it and co,isrtruction kniowni to Policy aencis. increase vulnerability of coastal areas to stornt suirge. Land reclamation along the coast also cauises damage and in- Central Planninig and cr-eases vuilneerability. Sectoral Agencies. Erosion caused by hillside devel- opment that re,noves vegetation and inicreases water rnipoff Also lack of drainage infrastructure along hillside roads. Hazard mapping carried out by Development standards revised to Increased awareness after Hugo Govermnent agencies maintain foreign consultants but local capac- reflect impacts observed after Hur- of the impact of environmental inventories of their physical as- ity now exists in BVI to up- ricane Hugo. degradation on vulnerability, sets. date/review maps. especially due to development Health Departments maps loca- Hazard maps available in digital and construction and reclamation tion of clinics and medical stock- Technical format and included in GIS data- in coastal areas. piles using GIS. base. National GIS network shares hazard mapping information with all gov- ernment departments. British Virgin Islands Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or linmitations are listed in italics. 4iazard .ssessme't jid'3 c:~ - -1V u ll6>,Kllly 8 menl . EnzironmenStlRsk Assessment. ______________________ ~ ~ A% appliag En%iro'ifiite'htal DDNI ad%ernied a%ailabjln) of 1994 Sheller Sur%ee condjicied lo DNI recognize' and aggre. Hazard and Risk Assessment Study assess location, capacity, age and sively promotes awareness of and availability of maps so inter- structural condition of emergency impact of environmental degrada- ested persons/groups can access it shelters. Study now being reviewed tion in coastal areas on vulner- at their office. and unsuitable buildings removed ability. as shelters or relocated if too close to flood prone areas and repaired if necessary. National Disaster Office DDM maintains inventory of criti- cal facilities that was recently put on GIS. Location of shelters and telecom- munication structures mapped on GIS. Hurricane guides produced with location of shelters and information on hurricane preparedness. Members of business community Business leaders involved in Zonal Mangrove systems protected by included on disaster related com- Disaster Committees though not private sector marinas and boat- minees. specifically targeted. ing community. Business sector not making use of Hotel and Tourism Association EIAs used indecision making, Leaders available hazard infonnation. represented on Mitigation and other usually when requested by public Business and Industry Copies of hazard .aps not distrib- comnittees. agency. uted but available in digitalformat from DDM. Businesses adopt safer building Members techniques. Page 50 British Virgin Islands Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. \p] U 4- +54 -:"'' ;';2 F< i Physical leasures . [ Socio-economic Envirommental I ~~~'-* ~~~~~~~~~~ I I ~~~~~~~~Post-disaster Measures Ln~~ ~ Nle [ ~ asures j Maue ;|!rura!S-s*-lNon-1Satrijtur! ruc on-Sructurl XN 1aurs 1 lleasures- x, Local High level of convciousne, amiong Avarcne' Nelons c.onducted to BVI Community College Appropriate building materials residents of the importance of safe sensitize public to preparation of recently offering Associate easily available. Shutters and building practices and appropriate Building regulations. Degree in Disaster Manage- hurricane straps are exempt from techniques. Course run at Community College ment. Now in second semes- govemment taxes. New buildings built with hurricane familiarizes engineering technicians ter. Community College has shutters and straps. with provisions in Building Regula- link with Arkansas Technical tions. University programme in Emergency Admiinistration Traditional developrnent patterns and Management. BVI signed resulted in location of development articulation agreement that in vulnerable coastal and hillside allows students to transfer to Civil Society areas. Arkansas after completing the (Commununities and thleir Associate degree at the Comn- organizations) munity College. Hazard and vulnerability information incorporated into curriculum of primary and secondary schools. Poverty related vulnerability to be assessed during the on- going Human Vulnerability Study. Low level of poverty in BVI so this is not seen as a major issue. [Policy Local Government Teclnical Contingency sub-plans for Local Disaster Committees Zonal Committees included in National Contingency Plan. National .; : :-:-::------.------ New public buildings conform to Building Regulations approved in There is a National Disaster Private marinas assist in protect- Post-disaster assessments (e.g. Building Regulations since they 1999. Developed under 1995 Build- Plan that addresses all major ing mangroves. post-Hugo Assessment) include were adopted. Regulations bind the ing Ordinance. Regulations available hazards and includes recovery School projects assist in replant- mitigation measures. Crown. for sale at cost of US $12. Based on measures. Plan now being ing mangroves. Government funds made avail- Government encourages use of OECS Model Building Code and revised. Matine shelters established and able for recovery and mitigation Central Planning and Poli hurricane shutters and straps. . All key sectors required to managed by boating community. measures. Sectoral Agencies Regulations are used as basis for have contingency plans. These They provide protected shelters in approvals by the Building Authority. are prepared with help from mangrove where boats can be Trained building inspectorate at DDM and are regularly up- moored during hurricanes. Larg- Building Authority to evaluate struc- dated. Copies are lodged with est shelter can accommodate 5- tural elements of development appli- DDM. 600 yachts. cations. Tourist Board now preparing a Conservation and Fisheries De- British Virgin Islands Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. g . ;* .f-l?.ir- j -'} icai N ies ::. . *-;Socio-economic Environmental Post-disaster Nleasures ~~~~ 41 L6 ~~~~~~~~~~~ie ,mlsu~ -k - .,_ oi-cn ~~~~ - Nleasures~~~~~~~~~~~~~~~os-isse 1-eaue < ' R46 ^h-^ -, ;'E,0 SAIffl;r u r <-tfutuN ra i,t.ieau r7 asuSres_ ' Land-Use Plans prepared and ap- Tourism Sector Plan involving partment help keep mangrove proved for Road Town and East End. all major tourism properties. areas clean and clear. Hazard information incorporated into Water and Sewerage Author- US Coast Guards assisted with Plans which are used as the basis for ity conducting study of water Environmental Sensitivity Map- making land-use decisions. and sewerage systems to iden- ping between 1998-2000. Maps Hazard information not well inte- tify and address deficiencies. produced in digital format and grated into land-use planning proc- Comprehensive Disaster Man- Atlas also produced. ess. Much hazard information not agement Strategy being pre- EL4A requested for major pro- used in making land-use decisions. pared to coordinate activities jects. National Physical Development Plan of all agencies. Oil spill Contingency Plan pre- prepared but never approved by National Integrated Develop- pared and response team in place. Executive CounciL ment Plan prepared in 1998. PWD has regular maintenance One of its main goals was to programme for water courses and reduce the country's vulner- ghauts. Includes erection of re- ability to hazards. Formed taining walls to reducing flooding basis for BVI's Comprehen- and removal of debris and gar- sive Disaster Management bage. Strategy and Mitigation Plan. No physical Planning or En vi- Solid Waste Department emp- ronniental legislation maidates ties garbage and secures re- use of EMAs. ceptacles when hurricane warnings issued. EMAs do not include specific haz- Needfor more training to make agencies aware of how Environmental legislation to tihey can cotntribute to mitiga- protect natu ral systems is rela- tion mneasures. tively weak. Need to provide agencies with Needfor legislation to allow for adequate resources to carry imposition offinesfor oilspills. out mitigation activities. Need to get key agencies to work together in a mnore coor- dinated manner. Page 52 British Virgin Islands Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ~~~~ ~~~~~~~ ~~Physical Measures -Socio-econoFmc Envi'ronimental ~~~~~~~- ~~~~~~~~~~~~~~~~N a-rsPost-disaster NMeasures z3~ ~ .. j ~ Measures .rral Nleasures Technical st3ff in reie'anm agencie Some Iraining camed out for g'% Nlifigalion Planning FFamle. SoIIC enmuoninenial pircecllon Post Hum;cane Hugo dainage are familiar with and use Building emment departments to promote work addresses a mitigation legislation exists. assessment was conducted in Regulations. awareness of Building Regulations. strategy and administration of 1993. Recommendations helped Construction of sea defense struc- Physical Platning Department coor- the strategy for the public and infonn 1997 Hazard Risk As- tures to protect coastline and coastal dinates a quarterly Planning Forum private sectors. sessnient and current Mitigation infrastructure from damage during for senior govemment officials and Mitigation Action Plan in- Strategy. storm surge. Department Heads to discuss plan- cluded use of GIS for hazard Post-disaster Damage Assess- Retrofitting of emergency shelters ning issues. These include risk information management. ments coordinated by DDM. carried out. evaluations for development applica- Seismic monitoring stations Physical assessments canied out tions and land-use plans and identify established by Seismic Unit of by Public Works and Physical necessary planning controls. UWI Trinidad in Tortola and Planning. Rapid assessments Early Waming Systems imple- Virgin Gorda following spate carried out by sectoral agencies. mented. Monitoring systems in place of earthquakes in October BVI has low level of structural Technical to track weather before and duning 2001. Fully operation al moni- damage to buildings during hum- hurricanes. toring system established in canes. National Emergency Broadcast Sys- Anegada by University of Govemment-in-Council estab- tem established to wam public of Puerto Rico. lished a Disaster Fund with an- impending hazard events. System nual allocations of approximately regularly tested. US $1 m to use in the event of a Inadequate staff in Development disaster. Control Authority and Building Authority to effectively nonitor de- velopnent and enforce Builditig regulations. Need for additional trainingfor staff to increase effectiveness of monitor- ing and enforcement activities. DDM promotes risk reduction strate- Core technical expertise avail- DDM coordinates post-disaster gies through their Public Information able to execute functions. damage assessments. and Education and training and Re- DDM now finalizing Bio- search Officers. Hazard Plan. DDM also promotes use of appropri- DDM has budget head to National Disaster Office ate building materials and identifies provide assistance to sectors where they are available locally. to prepare and update contin- gency plans. DDM mandated to conduct annual full-scale national disaster simulation exercise. British Virgin Islands Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ,~ K'.; ~ q K1e 5t Sty r hi > !'8 z = lj i lb-- .............................o....................................... EnPiron ental -- Post-disaster Nleasures - ~ ~ ~ ~ ~ ~~~~~~~~~trl,f -' MeAsutes' A leasures ~ ___________ Some Insurance Companies assist in Tropical Shipping Company promoting hazard awareness cam- sponsored recovery planning paigns and vulnerability reduction workshops organized by DDM Leadership ~~~~~~measures. for resorts. Leadership . Need to have private sector recognize their role and be- comne more involved in initiga- Business and tion. Industry Local businesses manufacture hurri- Appropriate building materials easily Large hotels have disaster Boating community assists in Appropriate building materials cane shutters for use locally and for available for sale locally. plans, including recovery protecting mangrove. easily available. export to other Caribbean islands. Govemment offers tax exemptions measures, prepared with sup- Members on hurricane shutters and straps to port from the DDM and Car- encourage their widespread use. ibbean Tourism Office. Cable and Wireless now run all telephone lines under- ground throughout the BVI. Page 54 British Virgin Islands Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. BUDGET SELF INSURANCE * Government has a disaster contingency fund into which l/2% to 1% of revenue is deposited annually for use in the event of a disaster. The fund has been in ex- istence for the past 3-4 years and currently stands at around US $600-700,000. The absence of major hazard events during the life of the fund has enabled it to accumulate a significant sum. * Private sector businesses are not required by law to set aside contingency disaster funding. Some major companies do operate a form of self insurance (captive Insurance), which consists of a non-taxable fund into which money that would otherwise have been used to pay insurance premiums is deposited. The fund can only be used for disaster related expenses. MARKET INSURANCE AND REINSURANCE * Government's Insurance Officer estimates that 75-80% of residential and commercial properties are insured and most likely to actual rather than replacement value. * NAGICO representative notes there are no statistics available, not even from the Supervisor of Insurance, to confirm the percentage of properties that are in- sured. * Most people are very conscious of safe building techniques and buildings are strong. Most insure their buildings only if they have a mortgage and insurance coverage is required by the lending institution. Very often, once the mortgage is liquidated, property owners stop insuring the buildings. * Due to the low incidence of hazard events affecting the BVI people are complacent and are willing to take the risk of not insuring their property * Most commercial properties are insured since they rely on commercial bank funding and this is a requirement. * Large number of high value assets owned by BVI residents, eg. yachts. High degree of insurance coverage for high value assts. Government an insurance companies encourage owners to insure. * There are no programmes offering premium reductions for use of safe building techniques. NAGICO suggests this is because insurance premiums in the BVI-which has been affected by fewer hazard events-are already as much as 50% lower than those in the rest of the north-east Caribbean where the rates are high because of frequent hurricane exposure. Nevertheless, Insurance companies still encourage property owners to reduce their exposure to hazard events by using safe building techniques. * The Insurance Regulatory office feels they have very little influence over the policies and programmes of Insurance Companies since most are branches with the head offices and parent companies registered outside the BVI PUBLIC ASSET COVERAGE * Government buildings (including schools) and vehicles are not usually insured. Some public infrastructure is insured (eg the air and sea ports). Reluctance to insure public buildings and infrastructure is due to the high cost of premiums. Governments estimates it saves money by just meeting its liabilities as they arise. * There are no known programmes targeting lower income households as the per capita income in the BVI is relatively high and there are few 'low income' households. RISK POOLING * 'here are no known examples of risk pooling Page 55 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps DOMINICA Page 56 Dominica Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. rMiapopig C -iNtuIlierahiN:'Ii -Asses,mn| Environmental Risk Assessnient Local Office of Disaster Management Some vulnerability assessments (ODM) organizes community meet- carried out for hurricanes, espe- ings during times of volcanic activ- cially to assess road network. Civil Society ity. Need to comprehensive identifica- (Conumunities and their Relatively little housing and devel- tion of criticalfacilities in vulner- organizations) opment in hazard prone areas. able areas. Some development located in vul- nerable areas. Policy Local Government Technical ODM and Ministry of Local Gov- In 1998, with threat of volcanic emnment providing training in risk activity in south of island, meetings Local Disaster Conunittees identification. were held with 12 communities and special training sessions in 4 of these. N atio n a ,; -. .-: I_ _ _ _ _ _ _ _ _ ::_ _ _ __ _ _ -_-_-__:_-_--_-:_---_. Disaster Mitigation Committee set Policy up under World Bank Project. Policy Chaired by PS Ministry of Com- munication and Works. Landslide hazard map prepared in Ministry of Communication & early 1980s. Trying to sourcefunds Works identifies structures and to update. facilities vulnerable to hazards. Central Planning and Seismic Research Unit in Trinidad Sectoral Agencies did volcanic hazard map in Technical 1999/2000. Report to be put on Tcncl website. Physical Planning Division has well developed GIS system which is used to identify areas prone to slippage and other hazards even without detailed hazard maps. ODM planned workshops for busi- ODM ensures persons in shelters ness sector in May 2002 on Role of well cared for during hazard events. Private Sector in Emergency Man- National Disaster Office agement. Also scheduled workshop for May 2002 with Dominica Hotel and Tourism Association on Hurricane Preparedness in Tourism Sector. Page 57 Dominica Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. l (| HazardW ssH aenA and -s m `Vulnerability Assessment - A ,r Mapping Socio-economie Physical Environimental Business sector represented on National Emergency Planning Organization. They have the oppor- Business and Industry Leaders tunity to express their concems. Business sector not very active in identifying hazard and risk issues. Members Page 58 Dominica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. -S ~ -" ; .P7 ;7l;^.Psi t]EaSure ' 1 l .ocio-economic [ Environmenlal I po t disaster Nmeasures ~~~~jF*frffc.j . wU~~~~~~~~~tU~~~'v~~ Pos-diastr Ncasre t.a - . > o pjlS sujcetural|>4N;,jructural ;^,>7<., D | psures | leasures Local _-. -_.- .___::: : ::- - : Civil Society ODM providing training for rural Hazard information not incor- Lack of awareness of environ- Building materials available but a home owners who mostly build porated into school curricula. mental issues at the community little expensive. Some companies (Communities and their wooden buildings. level. may reduce prices after a hazard organizations) event. Policy Local Govemrnent Councils build some storm drains Technical and roads. Central govemment funds some maintenance activities. Local Disaster Committees are GTZ project prepared model related to Local Govemment Struc- disaster plan. District Disaster ture. Committees to develop Plans based on the model. Pilot Local Disaster Committees project for 2 communities - Bellevue Chopin and Soufri- ere /Scottshead /Gallion. There are no district disaster plans. National Most public buildings conform to OECS Building Code customized for Improper disposal of solid Environmental protection policies After Hurricane David most building code. Dominica. In use, but not yet adopted waste increase vulnerability developed by Fisheries Division public buildings were built using Shelters undergoing retrofitting by government. during hazard events. and Environmental Coordinating hurricane resistant techniques. under World Bank project. Revised Physical Planning legisla- Inadequate sanitation facili- Unit. Some private buildings mnay deviate tion before Parliament. Will provide ties in shelters. No purpose ElAs requested for major projects from approved plans. for adoption of Code under new Act. built shelters. Therefore do or those in vulnerable areas. Code and in-house guidelines used to 'lot have the capacity to deal EIAs include hazard information. evaluate applications. Land use plan- with waste. Physical Planning Division brings Central Plan,iing Policy ners, with assistance from Environ- together relevant agencies to and Sectoral ment Division provide technical increase awareness of technical Agencies inputs to evaluate suitability of loca- staff about environmental issues tions, given knowledge of hazard and to evaluate applications, to vulnerability. help identify mitigation measures No hazard-specific standards exist. to include in development ap- No clear policy guidelines to guide provals. development in south of island, Environmental systemis not well which is vulnerable to earth tremors. protected. Environmental degradatios due to agricultural praictices. Page 59 Dominica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Ph'sical N1eaisuries' Socio-econonmic Environmental * ' ., , * . . ural.Phsical. '- Non-Structural -;: Soc o-eaonomes NIeasures Post-disaster Measures Ministry of Communications and Agencies adhere strictly to Code. Works built sea walls (eg between Physical Planning Division organizes Rouseau and Canefield and in workshops for staff with input from Portsmouth.) relevant agencies to sensitize them to Technical staff in relevant agencies environmental and hazard issues. have copies of building code. Physical Planning organizes training Technical staff need to be more for their staff and staff of other rele- familiar with Code. vant agencies to familiarize them with technical and legal aspects of building code. Workshops held with builders years ago to increase awareness of safe techniques and mitigation measures. Additional training will be conducted once the code is approved. Private firms, with National Devel- opment Foundation, hold workshops for all stakeholders in safe building Technical practices. Annual workshops held by Credit Unions for prospective home owners. National building code notformally adopted by Government. Physical Planning staff not well trained in hazard issues. Also inade- quate numbers of staff to do inspec- tions. Post of Chief Building Inspector at Physical Planning has been vacant for past 5 years. Physical Planning staff notfanmiliar with legal aspects of Code. Standards not consistent between agencies-Plhysical Planning and Environmental Healthfor instance. Need to improve consisteticy and standardize developnent standards. Page 60 Dominica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. * ' s#;* S-'3' s.Sv-'$P;hevsical l - 3- Socio-econonic Environmental Post-disaster Nleasures i- - ! -I& dsstrNe ue uhilt M aseasuresu uLnder World Rank ProJeCi. OffiTie Naiional Emergencr Nlanagenien E%acuaion plan in place lor Comrrniunl) %uirrerabilii% ahess* of Disaster Management building 21 Act is before Parliament. National volcanic eruption. ment and evacuation plan pre- storm drains in 21 communities and Consultation scheduled in March ODM not well staffed. pared in response to landslide and targeting another 21 with local help. before 20d reading. landslide dam in Layou River. USAID and OAS funded preparation National Disaster Office of information leaflet to guide retro- fitting of small buildings. Also used in community training with rural home owners. ODM uses media campaigns to pro- mote use of mitigation measures. Banks impose loan ceiling for lend- ODM targets Hotel and Tour- ing in south of island, which is ism Association to cover all known to be vulnerable to earth members. tremors. Insurance companies also Leadership reluctant to insure properties in these areas. These policies/practices serve Industry as a disincentive to people from building in this vulnerable area. Some hotels have prepared Businesses have no recovery Members simple Disaster Plans. ODM plans. helping then to improve plans. Page 61 Dominica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ,'<., ;;.|!,- ,ofr - >' =M^jor , _ , , Budget Self; Niarket Insurance and Risk Pooling and _ 3 j | g R r : ~~~~~~~~~~~~~~~~~~~~~~~Public Asset Coverage DivriiainRisk Financing ~~~ a~~~~~u ~~~~~~ R~ieinsu r'ance Diversificatio Local There is noformal alternative There is no group insurancefor There is no riskfinancing mecha- mechanisms to insurance be it hlomeowners. Homeowners and nism that allows losses to be paid contingency credit or contin- investors depend entirely on the off in thefiuture thirough credit gency equity. property insurance market, al- facility. Some churches and non-formal though some carriers cannot buy Comninercial properties do not use organizations ("Sou Sou") adequate reinsurance. risk-financing options that allow operate a "loose" form of self- Most properties in the middle and multi-year coverage that would insurance/welfare for their upper income groups are compre- resuilt in stabilizing premiurns. parishioners and partners hensively property insurance to NB: Most hotels are locally through systematic savings.5 actual value as this forms part of the owned and operated. Some other sectarian groups mortgage agreement. and credit unions build up Income loss due to the persistent contingency funds for provi- decline in the banana industry (the dential purposes. major employer in the economy) NGOs are not involved in hous- since 1995 has resulted in a signifi- Civil Society ing or property development. cant level of under-insurance of Clvil Socety ~~~~~~~~non-encumbered property. (Communities and their organizations) Aoarenperen ofete u A large percentage of thte housing stock in the lower income group is not insured And there is no self- insurance even if nany house/tolds assume the liabilities. Moreover, in addition to the vulner- ability to hurricanes, there are many hazard-prone areas. Unlike the motor insurance industry, there is no compulsory insurance for private properties. Given the island's vulnerability to volcanic actions, and itsfrequent devastation by hurricanes, there is dire needfor affordable compulsory insurancefor properties. There are Local government bodies in all villages, towns Policy and the City but all activities Local government are co-ordinated by a national agency. Teconical 5This non-formnal traditional contingency institution still lingers in some rural communities. Many of these institutions have evolved into credit unions, Dominica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. a. ~~ ~ ~ ,~i BuidgeIS~~~~ll'q1 ~~ liaket Iis'uran'ce' and ~,Risk Pooling andRikFn cng - ^<; ,and~~~~~~-,|se org .iig Risk Financing IfigUa!!,q ji% *~ennac .Diversirication Local Disaster Committees Naiona. Government does not allocate The insurance regulatoryfiunction is Government has no policyfor The public assets which are in- Govemment sources extemal contingencyfunds in its annual inadequate. The office is poorly insuring public assets. sured include: credit for reconstruction and budget based on actuarial staffed and poorly equipped. Staff The public properties, which are * Govemment headquarters mitigation efforts. Most debt probabilities. lacks expertise in risk management. insured, are covered under the * Treasury Building capital is sourced from commer- Seriousfiscal difficulties do not Some aspects of planning, zoning specific loan conditions and lease * Post Office cial lenders. allowfor such budgetary allo- and hazard mapping (hazard map- arrangement. ANwB:Alrotherpublic assets are Additional contingent credit cations. NB: This remains a ping for flooding and landslides) are There is no publicfund or n t pl a r faciliies could include: serious causefor concern given being done by the Physical Planning mechanism established to indemn- o su . (i) World Bank Economic Recov- the vulnerability of the islands Department. However there are no nify the poor or to provide incen- ery Facility to natural disasters particularly hazard nmaps governing insurer 's tives for undertaking mitigation (ii) CDB Disaster Mitigation windstorms and volcanic ac- levels of catastrophe peril liabilities measures. Facility tions. and no functional linkage between thephyica plnnng nd lteinsr-Governmnent needs to explore the Central Planning and Policy Government will be expected to thephysicaltlaniong and tee nnsur- Sectoral Agencies encourage tax incenitives when ance regulation. (i) Investing in contingenicy credit the Catastrophe Pool is estab- The insurance regulator needs to: and contingency equity to in- lished under The World (i) Have the capacity to do catas- crease liquidityfor rehabilitating Bank/CDB OECS and Barba- trophe premium pricing. danwged buildings, schools, dos Catastrophe Risk Manage- (ii) Educate with respect to reducing hospitals, waterfacilities, ports, mnent and Insurance Reforn thefinancial impact of events and roads bridges using credit and Project. minimizing the probability of avoid- capital market instumments. able losses. (ii) Providing incentivesfor ca- tastrophe risk coverage for low- income groups particuilarly those occupying areas prone to land- slide such as squatters. Technical Page 63 Dominica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. e*p ;'-~~rw- .: 2' ABudget Self Market Insurance and P i Asse C sk Pooling and Risk Financing -*t* < I .-;~~, n xluru nce > Re-insurance . . Di v ersification Buidgeliar alhocano nc arc | iJi DPO promoie4 ns reducuon nwde towards the Disaster through the national committees, Preparedness Office (DPO) public education and awareness onlyfor operations. No enuer- programs mainly all year round but gencyfunds are deployedfor is particularly active during the contingencies because offiscal hurricane season. difficulties. (ii) Although its Focal Points are National Disaster Office However govemment has very active, its activity is restricted National Disaster Office EC$853,000 in a Fiscal because of limitedfunds. Tranche at the Central Bank DPO needs to: which is a contingency fund.6 (i) embark on a broad based insur- DPO depends largely on in- ance, risk management and disaster flowsfrom regional and inter- preparedness education programmne national donors in the after- (fi) emphasize retrofitting, mainte- math of a disaster. nance and building standards and insurance coverage There is no society-wide Advi- Some insurance companies provide Public autonomous enterprises Banana Industry: The Wind- Altemative riskfinancingfor the sory Council, but the focal incentives to homeowners such as under the matnagetnent of the ward Island Crop Insurance busitness and industry would points in the village, towns and lower premium rates for risk reduc- central goveniment such as Water (WINCROP) provides a measure involve: city councils are very active in tion and undertake some risk as- and Electricity are not adequately of protection for wind storm (i) Allocation of capital reserve the awareness and education sessment and management checks. insured because offinancial damage, but there is no risk during the profitable years to be programmes with respect to However, the high deductiblefor constraints. transfer mechanism or self- in- used as collateralfor debtfinanc- disaster preparedness, disaster catastrophe coverage makes the Statutory bodies such as the So- surance. There is very little re- ingfor reconstniction effort. mitigation and risk transfer, premiium prohibitive for sonwe ca euiyBidn r nue servi ng because the industry is The National Development households, to theiruactual valu e experiencingfinancial difficulties. (ii) Use of capital market instun- to their actual value. in~~~~~~ents to genierate raise equiity Foundation has organized safer Pooling method would most be Tourism: There is no risk trans- capitalfor the recovery effort Business and Industry, Leaders housing promotions and loan appropriatefor these enterprises. fer moechaoisne or se rl- insurance Finaticial funding for retrofit. Teeaetbecvrduer for locally owned properliesv. (iii) Creation of a ventutre capital These are to be covered under ~~~fund to supplement recoveries for The work of DPO must be The World Bank/CDB OECS and Joint purchase of insurance cov- businzess interruption iisuirance. further broadened to include a Barbados Catastrophe Risk Man,- erage is an timperative (given the Technical Advisory Team to agement and Insurance Refonr similar exposure) to lower costs influence policy at the Cabinet Project. through increasedportfolio. Sub-Committee level. The memnbers should be drawn fromn NGOs, banking, insurance, industry and engineering to advise the Insurance Regulator and to pronmote best practices. 6 ECCB Credit Market Report, Feb 15, 2002 Dominica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ~~~ '~~~~~ ~NWkikt risudrance and ~ Risk Pooling and i t-' Public Asset Coverage DiersifaioRisk Financing Given the snall size of the Almost all company buildings are insurance sector, influential insured to actual value because the private sectorfirms will have to terms and conditions of the debt provide leadership. The larger capital require building standards players in the economy such as are strictly adhered to at all stages of Roseau Credit Union would the construction. have to assume an active role. Almost all company buildings are insured against all perils and are built in accordance with building standards. In most cases, commercial proper- ties are insured to their actual value to meet the conditionalities of the Members overdraft facilities. Some companies purchase coverage for business interruption, but the business sector has depended very heavily upon inflows on insurance claims payments for rehabilitation. Privatefirms do not cover compen- sation for emnployees. There is need for legislation to enforce the insurance of private property. There is need for moreforward planning by the private sector. References The information on risk transfer practices is the product of: (1) The consultant's first hand knowledge of the OECS insurance market, having being involved in market development since 1991. (2) Research on the insurance market, govemment planning and macro-economic policies, sub-regional disaster agencies, the private sector and NGOs in mitigation efforts. (3) Discussions with market players in insurance, regulation, planning, and disaster mitigation including: Mr. Nicholas Bruno, Acting Budget Director, Ministry of Finance, Roseau. Page 65 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps DOMINICAN REPUBLIC Page 66 Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. F .7 'k> .. -. r t ~- t~|sHa War8A= s men;d,|dE- o ; ~,H.j4Iulnerabiliitv Assessment [ Risk Assessment ~~ ~~ :~PK4P.hvsical I Enwironmental Local:- - The Dominican Disaster Mitigation Most population groups are aware No comprehensive inventory of The training of local groups to In general, the government, pri- Association (ADMD), has worked of at least part of their vulnerabili- important structures exists. identify and protect environ- vale and voluntary organizations since 1995 with over 50 NGOs and ties and consider that poverty and At the local level, vulnerability mental systems that stabilize understand that settlements and community groups in over 700 other socio-economic problems are assessments have been conducted in potential hazards or buffer hazard facilities in flood prone areas and communities to assist them in iden- more important than flooding, selected communities. In Santiago, effects is included in the proposed industrial areas are highly vulner- tifying and mapping vulnerabilities contamination and other hazards. for instance, a number of critical Natural Resources and Environ- able, however lack of resources and local hazards. During Hurricane season it is com- facilities in Santiago have been mental legislation to be submitted and/or political comnzitment The Peace Corps and NGOs7 have mon for supermarkets, the tele- identified as hazardous structures to Congress in early 2002. impedes the development and sponsored community disaster phone company, CODE- requiring a inspection and correc- implementation of an action plan. preparedness training in at least 200 TEL/VERIZON, and the newspa- tive/ mitigative measures to assure Subsequent to hurricane Georges, Civil Society high-risk communities, mostly in pers to distribute orientation infor- their future functional capacity.9 comprehensive vulnerability (Commnunities and their collaboration with the AD14D. mation. The press only runs seismic Given that an estimated 80% of reduction initiatives were under- organizations) After Hurricane Georges, the Civil hazard information when a major construction is informal, a signifi- taken in Haina, the countty's Defense and Red Cross imple- earthquake happens abroad or if a cant percentage of this takes place most important port and industrial mented awareness campaigns, tremor is felt in the country. How- in high-risk areas without interfer- area, and in Tamayo, Vicente giving over 2,000 presentations to ever, the ADMD and Sociedad ence on behalf of the authorities Noble and Jaquimeyes, an area more than 50,000 Dominicans Dominicana de Sismologla e due to lack of political conunitment. devastated by flooding;'° and nationwide.8 Igenierfa Sismica (SODOSIS- Nor are the commlunities well- assistance was provided to 81 MICA) regularly circulate informa- oraie nuht rvnfrhrcomnmunities in the development Many of the community-based tion to hundreds of international settlednent o hazard-prote areas. of community emergency plans efforts are short-term pilot projects, and national organizations. and committees. which do not provide long term follow-up necessaryfor lasting impact on vulnerability reduction. 7Including World Vision, Food for the Hungry, Mujeres en Desarrollo (MUDE), Centro de Educaci6n de la Mujer (CE-MUJER). Centro de Apoyo a la Micro, Pequefia y Mediana Empresa (CAMPE-[NTEC), Esperanza International, Asociaci6n Dominicana de Ayuda Social, Ecol6gica y Cultural, Inc. (ADESAEC), and Plan Intemational. s With financial assistance from the European Community Humanitarian Office (ECHO), ETRENA/ABT/Technical Secretariat to the Presidency (STP)/lnter-Amcrican Development Bank (IADB) and other sources. 9 Including the Cabral & Baez University Hospital; the Santiago Fire Station: and the Taveras/Bao Dam system. '° Implemented by ADMD, with funding from the USAID reconstruction program after Hurricane Georges. Based on the US Federal Emergency Management Agency (FEMA) Project Impact model. " Communities in the southern portion of the country. Assistance from the International Resource Group (IRG). Page 67 Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Hazard Assessment and Vulnerability Assessment Risk Assessment . . S 4*NiaMappingi v w .a-Sodo-economic a rb It e 9Physical ;` Environmental The Civil Defense has identified, Formal physical development Risk maps are not available at a evaluated and marked a small num- (approx 20%) requires a construc- scale usefuilfor local govemnment. ber of buildings as shelters in the tion permit from Public Works, a event of a hurricane or earthquake, land use permit from the Municipal and during hurricane season pub- authorities and completion of sev- lished information in the press eral related processes, including about the location of the shelters. increasing environmental controls, Policy which often do not reflect aware- ness of natural or other hazards. Most development (estimated at 80%o) not subject tofonnal devel- opmnent controls. Environmental controls often do not reflect awareness of natural or other hazards. Flood levels, soil conditions, ero- International development agencies Selected NGOs and community Both risk and hazard maps were sion and slope failure, and struc- and organizations have compiled groups include mitigation measures developed for La Zurza, El Capo- Local Government tural weaknesses in housing de- damage-related information and are in repaired and newly built homes.'4 tillo and Sim6n Bolivar in Santo tailed in three high-risk communi- active promoters of safer construe- Physical vulnerability infornnation Domingo. ties in Santo Domingo: La Zurza, tion techniques in the Dominican not availablefor the great nmajority El Capotillo and Sim6n Bolfvar.'2 Republic.'3 of structures. To the extent that the community Vulnerability inifornation not Studies of hazard-related damages can see and/or is aware of the pres- availablefor most of the cowitry. are not typically conducted. A ence of a specific structure (lifeline Where available, it has typically system should be put in placefor Technical or otherwise) communities can been collected as part of an exter- diagnostic studies of damage from locate and identify the local hazard. nallyfunded project. natural hazards Information on problems with A system should be put in placefor critical facilities not readily avail- diagnostic studies of damagefrom able from the responsible authori- natural hazards. ties. Hazard maps not availablefor nost comtmunities. Criticalfacility in- formation is not available in anay fornal or comprehensive fonnat. 12 Funded by USAID and implemented by the International Resources Group (IRG) and Instituto Dominicano de Desarrollo Integral (IDDI). 13 Including the Federal Emergency Management Agency (FEMA), the Housing and Urban Development Department (HUD), the National Institute of Standards and Technology (NIST), the United States Agency for Interna- tional Development (USAID) and the Cooperative Housing Foundation (CHF). '4 Communities participating in the USAID sponsored Post-Hurricane Georges reconstruction project guided by CHF. Page 68 Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. .H .z'drjAs's=hent tand s hment Risk Assessmren ~~fj~~ ~~ ng~~~~~f~~ ~~~io-econon~q iuc ~ ysiical ;. Environmental _________ Existing and active local disaster Organized and active local disaster Development projects often not committees have only the hazard committees have identified the designed to accommodate extra, maps they prepared for use and highest risk areas, which have been hazard-relatedforces.'5 reference. Generally the digital included in their evacuation plans. maps remain in offices such as the Special attention is paid in these Military Cartographic Institute and plans to children, the elderly and Local Disaster Committees the Ministry of Mines and are not in disabled. a scale as to be useful to specific communities. Maps of storm-related hazards'5 made available to hotel, free zone and other industrial and private organizations. 15 Developed under the USAID/OAS Caribbean Disaster Mitigation Project (CDMP). 16 Example: Flood containment wall in Tamayo, which was designed to control normal water levels, not hurricane-related levels. Pege 69 Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. - MArjdHsessm entand | Vulnerability Assessment Risk Assessmenl National The Civil Defense has a proposed In general, the govemment, private Assessments for project appraisals Natural Resources and the Envi- legislative package in Congress on and voluntary organizations under- focus on industrial, environmental, ronment Legislation currently in Disaster Prevention and Mitigation, stand that settlements and facilities economic and political concems. process. Under this legislation, which establishes and structures a in flood prone areas and industrial Natural hazards are generally not national development policies and National Disaster Mitigation pro- areas are highly vulnerable, how- considered, plans will be established to pro- Policy gram. ever lack of resources and/or po- tect natural systems that contrib- Significant new private and public litical commitment impedes the ute to hazard stabilization or sector buildings should be required development and implementation of mitigation. to install meteorological and seis- an action plan. mic instruments, to be maintained by educational institutions. Digital orthophotography integrated The Civil Defense has a proposed The existing official wind and seis- The Ministry of the Environment Criticalfacility informiation is not into the National Planning Office, legislative package in Congress on mic codesfor construction provide and the National Institute of Hy- available in anyfonnal or com- the Mining Ministry and other Disaster Prevention and Mitigation, inadequate standardsfor strnctures drological Resources monitor prehensiveformat. related govemment dependencies which establishes and promotes to withstand prevalent natural environmental degradation. As-buiilt draings and speci with resulting information available hazard vulnerability self-assessment hazards and are currently beitng tions sould be placed in public Central Planning and at scales of 1: 250,000; 1:50,000, techniques and prioritizes vulner- upgraded to improve performance. archives. This should be a re- Sectoral Agencies and 1:5,000. 17 ability reduction measures, based Mechanismsfor regular update and quirementtfor the issuing of occu- Adequate maps of rain hazards on socio-economic impact and maintenance of the building sta,n- pancy certificates, includirigfor exist. Maps of wind hazards avail- environmental priorities. dards and codes needs to be devel- Govenmmentfacilities. able but requiresfurther attention oped. and available seismic hazard maps Enforced compliance with the Technical are inadequate. The integration of building standards has been pro- hazard infornation into a national posed and approvedl but has yet to GIS database has barely begun. be assigned an operating budget by National hazard maps, showing the President. criticalfacilities, should be pub- Most govemment agencies main- lished in national newspapers at tain some type of documentation regular intervals. regarding the physical assets in Networks of measuring stationsfor inventory. rainfall, winud speed, barometric Standards currently exist for build- pressure and seismic strong mo- ing materials, but they require tions should be established and updating and better enforcement. maintained. " Developed under the LADB funded Post-Hurricane Georges program. 18 National Office for the Seismic Evaluation of Buildings and Infrastructure (ONESVIE). Page 70 Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. w- F ;- a- *, i nr'aZiliardAisessment _-_sesmer_an :_ Risk Assessment g §,r i t. : sk, 41vt'Ns'-g f- tu Aoci&& o-,icv. W +,-PlWSicaeil ' ' Environmental The Naiional Disasicr Olfice h:i The Ci%lu Delenwe has ideniified The Cil il Delene has moilhied The Nlini,ir) of Educ;aon and proposed a legislative package to highly vulnerable population resources to inventory and conduct the National Institute of Hydro- National Disaster Office promote the use of hazard informa- groups and is seeking govemment a vulnerability audit of all critical logical Resources conduct National Disaster Office tion for development and invest- resources to implement plans to facilities. courses for primary school stu- ment decisions across all sectors of reduce vulnerability in these dents regarding the importance of govemment and the economy. groups. safe water. Since 1998/99 leaders of each sec- Leaders such as CODETEL and the Generally corporations, franchises, Under Law 6400, the Ministry of tor in Santiago have developed National Insurance Company sup- chains and companies with intema- the Environment requires projects jointly a Strategic Development port national activities, including tional contracts are required to to comply with specific standards Plan for the City of Santiago de los provision of support to the Civil comply with intemational design to obtain a building permit and an Caballeros to identify and prioritize Defense. and building as well as safety and operating license. However, there strategic growth, service and other environmental standards in keeping is little enforce,inent and generally measures, taking into consideration with programs such as IS09000 this is not done. active traces of the Septentrional and ISO14000. All hotels and industries are re- Fault, areas prone to landslides, and CODETEL19 assesses suitability of quired to monitor environmental flooding. new project sites, considering soil degradation. The businesses, industries and local conditions and other risk factors. Business and Industry Leaders govemment in Haina agreed upon, The oil refinery, REFIDOMSA, is a authorized and marked a hazardous leader in industrial safety and ad- materials safety route. vised the Dominican Authorities Many large companies, corpora- (Marines) in development of Con- tions, franchises and chains use tingency Plans. hazard maps in compliance with Due to lack of awareness of the intemational safety guidelines such local seismic code, some engineers as IS09000 and ISO 14000. and companies modify and apply The Oil Refinery, REFIDOMSA, Amnerican, Japanese, and other has supported the development, seismic resistant building codes. distribution and use of hazard maps. 19 GTE/Verizon affiliate in the Dominican Republic. Page 7] Dominican Republic Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limritations are listed in italics. Haiard Assessment and . Vulnerability Assessment Risk Assessment -I Mapp g, ^ f '^So i C hysic a ¶Ph4oie a En.irotmnental Large emplo)er, are usu:ll) re- Both REFIDONISA :nd CO)DETEL quired by their headquarters to conduct regular vulnerability audits conduct regular structural assess- of their facilities and support net- ments of facilities and implement works, the former as a requirement suggested corrective and/or preven- by SHELL, the latter as a require- tive measures. ment for the insurance policy. The oil refinery, REFIDOMSA, Memlbers regularly uses hazard maps in deci- sion making to prevent oil spills and other incidents. Technical groups such as SODO- SISMICA, GE2 and others provide structural assessments of facilities. References The information generated is the product of: I The consultant's (Christine M. Herridge) first hand knowledge of the NGOs, Civil Defense and Private Sector vulnerability identification and reduction activities as Coordinator of the Asociaci6n Dominicana de Mitigaci6n de Desastres (ADMD) in the Dominican Republic. 2 Discussions with key sources of information regarding insurance, the environment, the building code, Public Works, the National Planning Office, hotels, free zones, and the LDB programming including: Ing. Sim6n Mahfoud, Technical Vice President, Compafia Nacional de Seguros Ing. Evelio Martinez, 2nd Vice-President of Engineering, Compafifa Nacional de Seguros (SEGNA) Ing. Maximo Vifnas, General Advisor in Health, Industrial Safety and the Environment, REFIDOMSA (the Dominican Oil Refinery, affiliate of SHELL) Ing. Americo Julio Pefia, Environmental Advisor to the Senate of the Dominican Republic Ing. Hector O'Reilly, President of SODOSISMtCA, Technical Advisor to Public Works Mr. Ivan Reynoso, Executive Director of the Santiago Chamber of Commerce and Production Mr. Jose Almonte, Director of Industrial Safety and Quality, CODETELfVERIZON Mrs. Paula Dimitri, Executive Director of the Santo Domingo Hotel Association Ing. Josd Alarc6n, Coordinator of the Risk Management and Zoning Component of the Technical Secretariat to the Presidency's Disaster Prevention Sub-Program Mrs. Maria Rodriguez, Head of the Environmental Planning Department of the National Planning Office Page 72 Dominican Republic Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Local . .... . ... .. . ~Consejo Inter-lnstitucional para la There is no control over informal The Ministry of Education has Significant strides have been Appropriate building materials Coordinaci6n de Programas de housing in hazard prone areas, developed texts for various taken towards the development are generally available, but often Viviendas (CII-VIVIENDAS) has which is often quite dense, subjects to include hacard and and implementation of mecha- without proper installation in- developed and distributes a series of Communities often question the vulnerability reduction infor- nisms and knowledge to identify strrctions. "Self-built construction guides." standards of new construction and manion in the school curricula. environmental degradation. Recent post-disaster reconstruc- Mitigation measures designed to refurbishment projects, but often with NGOs20 address the relation- tion projects have required im- address one hazard (e.g. flooding) little effect. ship between poverty and plementation of mitigation incas- rarely address the full range of vulnerability in development ures with appropriate methods Civil Society ~hazards (e.g. flooding and hurricane projects. and materials.2' (Communities and their Community residents that have are in place for post-disaster organizations) participated in the Cooperative geall ae o Housing Foundation's (CHF) super- vised housing repair and construc- tion programs are able to share safer techniques with neighbors. Demonstration homes should be constructed in communities illust rat- ing good practices for small dones- tic houses (appr 70 mit2) Much of the public infrastnucture is A building code exists, however it is Ther ae no local recovery plans currently located within hazardous only available as a series of separate in place. areas, provisions, lacks references to cru- All building ap d facilitrpo ailures cial auxiliary documents (such as the s utould be studiedfor causes. winzd and seismic codes) and remains Failure reports should me a man- Local Government Policy largely unenforced. Few training datory pa rt of the approvals courses exist andHpublic inforaation proce.vs where recupstrrctiot or is deficient. major repairs are planned A system of effective enforcement of standards needs to be designed and enforced. Flood level markers were recently installed along the Yaque del Sur technkal ~~~~~~~~~River as part of an early warning inghntcal system for the communities of Ta- mayo, Vicente Noble and Jaquim- eyes. 20 For example, World Vision, Food for the Hungry, Plan International and the Instituto Dominicano de Desanrollo Integral (loDDI). 21 For example, post-hurricane Georges housing reconstruction and rehabilitation implemented by the Cooperative Housing Foundation, with funding from USAID. Page 73 Dominican Republic Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are-described in plain type and gaps or limitations are listed in italics. b3!S aL Mevasurs.,|, W: ; Socio,->economic Environmnental Post-disaster Nleasures _ . . .. ~ Siictutral iNoni-Struclural eaIeasuires N'leasures Over 700 communities (a Many local committees include minority nationwide) have representatives of environmental received assistance with the groups. establishment of community Through their members, the emergency committees; re- ADMD-sponsored disaster com- ceived training in community mittees have formed links with disaster preparedness, first aid, local authorities, reported key Local Disaster Committees evacuation routes and security statistical community-based in- brigades; and received a dona- formation and have met with tion of tools and emergency Civil Defense, Red Cross and equipment. other Provincial authorities. The majority of high-risk commnunities still have not received orientation, assis- tance or equipment. Page 74 Dominican Republic Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. t.g: --+ 1 R a M w q-~M5}strgt =i-ufse| t,,t,,: - r-2 ' ' lWleasues N lVleasures Post-disasler Mleasures Technical siaff in rno'i agencies is P blic Itork.i do-si noi haln' aJe- generally familiar with and use the quate huawn, financial or naterial existing building code. resources to develop or enforce development standards. The Ministry of the Environment does have the resources but is recently established Technical and not yet able tofulfill its charter due to lack of political commitment. Technical staff should be emnployed on the basis (in part) on successful completion offonnal exams related to their specificfunctions. Regular re-certification should be required. The Civil Defense proposes to play a The political leaders have not Standards for post-disaster reha- key role in the authorization of all been integrated into the sys- bilitation and new construction construction but does not have the tem and the public believes reviewed, at times, for adequacy. resources or authority to do so. that little has been done. Rehabilitation efforts are donor The Civil Defense does not driven accorditg to imposed National Disaster Office have resources to hire tecini- criterion often ignoring comnmuni- cal experts and nuist rely on ties' development priorities. donations of technical assis- Comm,nunities and organizations tance. should receive guidance in strnc- tuitring externzal assistanice to include mitigation. Page 76 Dominican Republic Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. rJ w"t< .- .; i.K>. '-Ph>};sic j1, \1ea ures¶;.;.es. z _ (Soio economic Environimental ~~::. - ~ ~ ~ *~ $No'ri-Sti~~uduraI-~'.y 'M~~asures Measures Post-disaster Nleasures r *; e^ 8-Wt > *,l;,9${Srue'turl g* ...................... ,`~Noii-Stiu tural~~ ........ rUt tleasures llaue Businesses conduct Iraining in sfel) Generally corporalnons, chains and Generall) corporaIon,. chamin The pr(posed legislanion on Naiu. and other topics with the franchises implement intemational and franchises have a contin- ral Resources and the Environ- understanding that the employees safety and other standards to reduce gency plan and brigades made ment will require leaders and will practice safety techniques at the vulnerability of non-structural up of employees representing organizations to adopt and pro- home and in the community. elements. the various shifts and depart- mote the use of intemational Businesses such as the Reserve The ADMD continues to emphasize ments, however this is done standards that reduce the potential Leadership Bank, CODETEL, and others have the importance of a fire prevention, intemally, not in collaboration impact of disasters and accidents sponsored presentations on the DR's detection and control capacity along with national or local plans. on the environment. Many corpo- natural hazards and disaster mitiga- with other preventative measures. CODETEL and REFIDOMSA rations, chains and franchises tion nationwide for their employees, collaborate with the Civil already comply with intemational in addition to distributing printed Defense and related authori- guidelines such as IS09000 and materials and providing training in ties due to the importance of ISO 14000. fire prevention and control. their services to the country. Technical organizations such as Appropriate building materials are Business and Industry Asso- The Ministry of the Environment Just-in-time setup and availability SODOSISMICA, GE2 and Domini- available for sale. ciation and its members de- provides limited training regard- of shipping containers has more can Union for Engineers and Archi- Information on non-structural mitiga- veloped an Emergency Plan ing reduction of environmental impact on inventory levels than tects (CODIA) can be consulted for tion measures is available, for the Haina area, in coordi- impacts. In addition, universities considerations related to huri- structural retrofit and other services, nation with local authorities offer Environment masters pro- cane season. REFIDOMSA, Business and technical assistance. Approximately 50% of companies and includes the Emergency grams. 5 CODETEL, and Hotels, however Industry Geeal oprtos hisad will consult their insurer regarding Plan prepared by the local INTEC has a linfited programi to do adjust inventory in preparation Genesfrallync orposrations chains an specif design specifications to include fire community emergency com- promote training and research to for hurricane season. franchises require the use of specific prevention measures and other ele- mittees. rdc niomna mat otcroain,can n standards by designers and contrac- ments before construction to reduce reduce environmental impact. Most corporations, chains and tors, and conduct regular inspections insurance premiums for fire cover- Both REFIDOMSA and CO- franchises strive to reduce down- and require retrofitting and modifi- age. DETEL report having tested time to a minimum through the Members cations to comply with company- disaster plans developed based design and implementation of wide standards. on local hazard information, contingency plans. Appropriate building materials are which include preparation Often, corporations, chains and available. recommendations for employ- franchises will import appropriate ees' homes and families. building materials and technicians REFIDOMSA is assisting the from headquarters, if not avail- Dominican Marine Corps with able locally. the development of its disaster plan and assisted with dis- semination of informiation on controls for toxic and hazard- ous material spills and con- tamination. 25 Including the Universidad Nacional Pedro Henrfquez Urena (UNPHU), Universidad Aut6noma de Santo Domingo (UASD) and Instituto Nacional de Tecnologia (INTEC). I'age 77 Dominican Republic Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. References The information generated is the product of: 3 The consultant's (Christine M. Herridge) first hand knowledge of the NGOs, Civil Defense and Private Sector vulnerability identification and reduction activities as Coordinator of the Asociaci6n Dominicana de Mitigaci6n de Desastres (ADMD) in the Dominican Republic. 4 Discussions with key sources of information regarding insurance, the environment, the building code, Public Works, the National Planning Office, hotels, free zones, and the IADB programming including: Ing. Sim6n Mahfoud, Technical Vice President, Compafifa Nacional de Seguros tng. Evelio Martifnez, 2nd Vice-President of Engineering, Companifa Nacional de Seguros (SEGNA) Ing. Maximo Vifnas, General Advisor in Health, Industrial Safety and the Environment, REFlDOMSA (the Dominican Oil Refinery, affiliate of SHELL) Ing. Americo Julio Pefia, Environmental Advisor to the Senate of the Dominican Republic Ing. Hector O'Reilly, President of SODOSISMICA, Technical Advisor to Public Works Mr. Ivan Reynoso, Executive Director of the Santiago Chamber of Commerce and Production Mr. Jose Almonte, Director of Industrial Safety and Quality, CODETEL/VERIZON Mrs. Paula Dimitri, Executive Director of the Santo Domingo Hotel Association Ing. Jose Alarc6n, Coordinator of the Risk Management and Zoning Component of the Technical Secretariat to the Presidency's Disaster Prevention Sub-Program Mrs. Maria Rodriguez, Head of the Environmental Planning Department of the National Planning Office Page 78 Dominican Republic Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ... .. ..... . ~~Many church and community Few residential and comnunercial organizations with international properties are insured, and those headquarters channel resources to that are insured arefrequently local chapters in response to not insured to actual values to damage reports and requests save on premiums. Often thle level made by local of fices of insurance is related to the outstanding loan principal. CvLSociet (Cinilunitietyand their organizations) Generally loan recipients are organizations with their organizationrequired to pay an additional fee to cover life insurance, however a policy to cover danage from hurricanes or earhquakes is not required or promoted. There should be public education programs about insurance. It Polic T Local goverm enw t Technical I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Local Disaster Conunitteese______ Page 79 Dominican Republic Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limnitations are listed in italics. Qudgt~,Seir1NMarket nuac and 11 Risk Pooling and Rs iacn _______________________.[ +t get Seir Insurance | .$- p Public Asset Coverage DiersicaionRisk Financing National .. -. The Government does not allo- The insurance regulatory function The insurers and the IADB are Public assets are generally not cate contingent disasterfunding is adequately empowered and promoting insurance for public insured, however there are in- in its annual budget, but there is a funded, with trained staff for properties, which is still not re- stances of 5 to 6 private insurers bill before Congress that would controlling insurers' fiscal health quired. There is a legislative pooling together to cover a large enable this practice. and catastrophe peril liabilities. proposal in the House of Repre- public entities assets, such as in The Government does not offer The insuranzce regulator does not sentatives which would require the case of the Central Bank. The tax incentives tofinance the crea- oversee the implementation of that 0.5% of the National Budget assets that are insured are gener- tion of private catastrophe re- hazard Inaps govenling insurers' be reserved to insure public ally insured separately. serves. Govemment should ex- levels of catastrophe peril liabili- works. Policy emptfrom taxable income such ties, but reinsurers do use hazard Govemment dependency certifiable reservesforfuture maps in this way. administrators are free to decide Central Planning and damaging events. 5% of after-tax eamings is con- from whom to obtain insurance Sectoral Agencies The Government often has diffi- tributed to a Catastrophe Loss for property and do not pool culty complying with the counter- Trust Fund. together to obtain better rates nor part requirements to gain access The ~are they required to insure via the part requirernents to gain access The insurers are currently classi- govemment-held insurance com- to loans offered by the IADB and fied by size and premiums col- World Bank. lected/sates volume. Work un- MeYe is no publicfunding derway with M Best Co to pre- mechanism to inudenutify the poor. pare new rating system. Govemment projects should be independently reviewed at the Technical design stage, with the aim of eliminating need for hurricane insurance. The Civil Defense has submitted The Civil Defense does not pro- National Disaster Office a legislative package that would mote risk reduction for insurabil- assure a budget for emergency ity purposes. response. Representatives of private insur- Through their Risk Inspection Public autonomous enterprises do Many corporations, chains and Other than financing the amount ance companies participate on an Departments, insurance compa- not generally insure their assets, franchises have a worldwide of the premium due, no other Advisory Board to the Insurance nies provide technical assistance policy that covers assets and mechanisms exist. Superintendent, which meets to clients, mnaking recommenda- activities in the country. regularly and works on topics tion and evaluating their compli- Individual hotel chains will often Business and Industry Leaders such as policies, coverage, cover- ance. If the client does not com- pool coverage. age modifications, and insurance ply the company will cancel the legislation. policy. Corporations, chains and fran- chises generally are required to have up-to-date coverage. Page 80 Dominican Republic Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. :'.ti <'-tj>-~s' g B urSl ranct' rh t' .P b -R . isk Pooling and. iskFinancing ',~!-. .. , -t P A eteCosuraef DiverS'ifcation Generally, conmpanies do not Often private commercial proper- maintain savingsfor self- ties are not insured to actual insurance purposes. However, value, but to the amtount remain- both REFIDOMSA and CODE- ing on the loan principaL TEL reported that special contin- An estimated 20% of private gency funds are part of an avail- companies, which are generally, Members able emergency budget. corporations, chains and fran- Companies using cutting edge chises, have business interruption technology are concemed about insurance. the tum around timue on insurance policy claims and how this can affect recovery plans and losses in market share to better pre- pared competitors. References The information generated is the product of: 5 The consultant's (Christine M. Herridge) first hand knowledge of the NGOs, Civil Defense and Private Sector vulnerability identification and reduction activities as Coordinator of the Asociaci6n Dominicana de Mitigaci6n de Desastres (ADMD) in the Dominican Republic. 6 Discussions with key sources of information regarding insurance, the environment, the building code, Public Works, the National Planning Office, hotels, free zones, and the IADB programming including: Ing. Sim6n Mahfoud, Technical Vice President, Compafifa Nacional de Seguros Ing. Evelio Martinez, 2nd Vice-President of Engineering, Compaiifa Nacional de Seguros (SEGNA) Ing. Maximo Vifias, General Advisor in Health, Industrial Safety and the Environment, REFIDOMSA (the Dominican Oil Refinery, affiliate of SHELL) Ing. Amdrico Julio Pefia, Environmental Advisor to the Senate of the Dominican Republic Ing. Hdctor O'Reilly, President of SODOSISMICA, Technical Advisor to Public Works Mr. Ivan Reynoso, Executive Director of the Santiago Chamber of Commerce and Production Mr. Josd Almonte, Director of Industrial Safety and Quality, CODETEL/VERIZON Mrs. Paula Dimitri, Executive Director of the Santo Domingo Hotel Association Ing. Jose Alarc6n, Coordinator of the Risk Management and Zoning Component of the Technical Secretariat to the Presidency's Disaster Prevention Sub-Program Mrs. Maria Rodriguez, Head of the Environmental Planning Department of the National Planning Office Page 81 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps GRENADA Pamie 82 Grenada Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. 1, : l a A WW-Assss smeiii and I>-, :.;'.eJ'.s'^' ;'. ' I'.o .,erability Assessment - Risk Assessment p41 . , 4 'Q t"I'Q1ARikTAsessmen ndent-neail *A$v^-.'; ^ , - ', ^e|.^ aP= In gj z,.};s ;^l s -^,s,, P J$,_ ,s;ica^l1 &asuresf; t;.:" {:1) ' .So6io-economic En%iromnental I Ilsu t-4. trfl cib 1 _____;___________ea ures,1easures, - Local: Civil Society People not sufficiently aware of safe National Development Foundation Appropriate buildinig materials building techniques and there are organizing training for builders in not easily available; eg hurricane (Conmnunities and their veryfew skilled builders. use of building code. straps not sold locally even organizations) though retrofittiig encouraged. Policy Local Govemment Technical No hazard naps available. Need for people with appropriate Local Disaster Comm?littees skills and training to understand initigation issues. Page 85 Grenada Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. v"' as~cii i~i ~ ' ' .Socio-economic I nironmenital StCiuNl se l l N_ton Sl-uc-l i ' r lv . J Neiesleasures- Post-disaster Neasures National Existing platning legislation does Prior to preparation of Building ElAs requested although planning not bind the Crown and some public Code, Physical Planning Unit used legislation doesn't specifically buildings do not pass through plan- Regulations under existing legisla- mandate it. ning system to ensure conformity tion and Development Standards Revised planning legislation with Code/standards/guidelines. prepared in-house to guide develop- includes provision for EIA and ment and construction. Historical will go before Parliament in early information also used to assess ap- 2002. plications. Some protection for environ- OAS/CDMP provided support to mental systems eg via National develop Building Code in 2000. Forestry Policy (1999) and Ma- Implemented for one year on a trial rine Parks Unit of Fisheries Divi- basis. Building Review Committee sion. collating comments to amend Code. Central and Revised planning legislation going alised at this time. SectoraPlanning Policy before Parliament in early 2002, Sectoral Agencies which provides for Building Code Shortage of resource persons in and National Physical Development Physical Platining Unit to evalim- Plan to be adopted under the Act. ate EMAs. 1999 Physical Environmental Man- agement Plan for Carriacou and Petit Martinique include some hazard information using historical data and local knowledge of hazard events. National Physical Development Plan prepared and recently accepted by Cabinet. Building Code does not deal with locational issues or how to identify and avoid vulnerable locations. No local capacity to develop hazard Some trained building inspectors to maps. enforce and monitor implementation of building code. Insufficient staff at Plhysical Plan- ning for nonitoring and enforce- Technical mnent. National Disaster Coordinatorfeels there is insu,fficient capacity to evaluate development locations, particularly the soil conditions. Leads to houses built in clay soils and crackinig. PaiPe 86 Grenada Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. '. ';., ~~~~~~~ ':-P iialMea~p~su s -,* Socio-eco'nonic Environmental t-;-inuct [,t t' ¶N2SllMeas,u,estcA . , o ec c5 E ensuronnest I Post-disaster Neasures NERO working with business com- Some sensitivity at the national munity to increase their awareness. level to the relationship between environmental issues and natural hazards. NERO represented on National Disaster Office most environmental initiatives. NERO working on draft envi- ronmental legislation based on CDERA model. In 2001 NERO initiated Pri- vate Sector Disaster Manage- ment Committee. Now being structured. Large companies like Cable and Wireless have disaster Leadership management plans. Smaller companies asking NERO for assistance to pre- pare Plans after NERO Business and worked to increase their Industry awareness. Insurance industry not very respon- NERO is working with hotel and sive since Grenada has notfaced a tourism industry to understand major hazard in decades. environmental issues and their No premium reductions offeredfor relationship to natural hazards. Membhers development including mitigation Mneasures or retrofitting. Grenada Development Bank started project with CDB assistance in 1998/9 to offer loansfor retrofitting homes. P'aRe 87 Grenada Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. _____________ .~ ~ ~ R Insurance IRisk Pooling n -.~ ~~~u'djet seir Ifsu e asurance urance and Public Asset CoVerage r * Risk Financing i+iiE~~~~~~~o :tN m W* ' lCr- a Reinsurance f,rp . ,.Versirication Local: -_______ _ :_--._:-:- -:---_:__:_--: :--- -_-:--_--__- NGOs are not involved in risk There is no group insurance for There is no riskfinancinig ,iiechla- transfer. homeowners. Homeowners and nism thiat allows losses to be paid There are no altematives to in- investors depend entirely on the off in theffuture throuigh credit surance be it contingency credit property insurance market, al- facility. or contingency equity. The clien- though some carriers cannot buy Commercial properties, particu- tele is not that sophisticated or adequate reinsurance. 8 larly, hotels that are part of inter- knowledgeable. Most properties in the middle and national chains, may be using risk A few churches operate a "loose" upper income groups are compre- financing options that allow form of self-insurance for their hensively property insurance to multi-year coverage that would parishioners through informal actual value as this forms part of result in stabilizing premiums. welfare schemes the mortgage agreement. Some churches build up contin- About 75% of properties in the Civil Society gency funds for providential lower income group are insured Civil Society g~~~prpoeny because premiium rates are rela- (Communities and their organizations) purposes. tively low in the market. NGOs are not involved in housing or property development. Some properties are uninsurable due to building standards, type of material used and vulnerability - low-lying areas, on precipitous areas. Unlike the motor insurance indus- try, there is no compulsory insur- ancefor private properties. Given Grenada's vulnerability to volcanic actions, there is need for compulsory insurancefor proper- ties. [There is no local govemment Policy body. All activities are prosecuted Local government by a national agency.] Techniical_ Local Disaster Cormnmittees 28 Estimates were provided by David Phillip, managing Director, NALGICO, one, of the leading property underwriter in the market. P-,~ RR Grenada Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. tS4t¶Y~ * l te 1,INrt-nsurane'anid; Risk Pooling aid Di. Risl Financing Budgetia S 4I InsuFn&,6~ici`Sset o%erage esfc io National- -::: -:-- > . :. --i: - -- ' Government does not allocate The insurance regulatoryfunction Government has no policyfor The public assets which are in- Govemment sources external contingencyfunds in its annual is inadequate. The office is poorly insuring public assets. Only vehi- sured include: credit for reconstruction and budget based on actuarial prob- staffed but is equipped with a fair cles are insured. * Government Headquarters mitigation efforts. abilities. amount of technical skill. Skills in The public properties, which are * The Financial Complex Additional contingent credit A contingencyfund was set up in risk management however are insured, are covered under the * The ministerial Complex facilities could include: 1999 but no transfer is being limited, specific loan conditions and lease * The National Stadium (i) World Bank Econo,nic Recov- made. Some aspects of planning, zoning arrangement. ery Facility NB: The absence of deliberate and hazard mapping (hazard There is no publicfund or nBot insred (ii) CDB Disaster Mitigation risk transfer policy may be due to mapping for flooding and land- mechanism established to indem- Facility the fact that the country has not slides) are being done by the nify the poor or to provide incen- had a major disaster (fire, vol- Physical Planning Department. tive for undertaking mitigation canic or windstorm) since the However there are no hazard measures. Centrl Plnnin and Policy passage of Hurricane Janet in maps governing insurer's levels Central Planning and Policy passageofHurricaneof catastrophe peril liabilities, no Government needs to explore the Sectoral Agencies 15.functional linkage between the feasibility of Government will be expected to physical planniing and the insur- (i) Investing in contingency credit encourage tax incentives when ance regulation, and very little and contingency equity to in- the Catastrophe Pool is estab- enforcement. crease liquidityfor rehabilitating lished under The World damaged buildings, schools, Bank/CDB OECS and Barbados The insurance regulator needs to: hospitals, waterfacilities, os, Catastrophe Risk Managenent (i) have the capacity to do catas- roads bridges using credit and and Insurance Reforn Project. trophe premium pricing. capital market instruments. (ii) educate with respect to reduc- (ii) Providing incentivesfor ca- ing thefinancial impact of events tastrophe risk coveragefor low- and minimizing the probability of income groups particularly those avoidable losses. occupying areas prone to land- slide such as squatters. Technical Pave 89 Grenada Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Nilarket [nsurance and Risk PooigadD :. , ..; Budget Self Insurance Insurance a Public Asset Coverage oling and Di- Risk Financing * '' tt APe. $9 ,iii:b,,.,j,>.irrv S 8t~~~:,--iReinsurancel t. ;* * ersil-ato ''M'JW4* _Vversiication Budgetary allocations are made NERO promotes risk reduction towards the National Emergency through the national committees, Relief Organization (NERO) only public education and awareness for operations. No emergency programs mainly during the hur- funds are deployed for contingen- ricane season. cies. NERO needs to: National Disaster Office Government has EC$ 1.9 millions (i) To embark on a broad based National Disaster Of fice in a Fiscal Tranche at the Central insurance, risk management and Bank, which is a contingency disaster preparedness education fund.29 programme NERO depends largely on inflows (ii) To emplhasize retrofitting, from regional and international nuainitenance and building stan- donors in the aftennath of a dis- dards and insurance coverage aster. There is no society-wide Advisory Insurance companies do not Public autono,nous enterprises Nutmeg: There is a certain meas- AlItenative riskfmaticingfor the Council. provide incentives to homeowners under the management of the ure of risk transfer mechanism or business and industry would such as lower premium ratesfor central government such as Water self- insurance. This is associated involve: risk reduction notfor risk as- and Electricity are not adequately with the capitalization of the (i) Allocation of capital reserve sessment and rnanagement insured because of expectations Cooperative, which manages the during the profitable years to be checks. in the insurance narket, production, and marketing of the used as collateralfor debtfinanc- Statutory bodies such as the port export crop. ingfor reconstruction effort. are insured to actual value. Reserving is however never sufqi- (ii) Use of capital inarket instnr- Business and Industry, Leaders Pooling inethod would mpost be ci ent to bail out the industry in uteruts to genierate raise equiity Financial appropn'atefor these enterprises. difficult periods. capitalfor the recovery efjort appropriate for these enterprises. ~~(iii) Creation of a venture capital These are to be covered untder Tourism: There is no risk trans- fund to suppleneit recoveries The World Bank/CDB OECS and fer mechaniism or self- insurance fromi businiess interruption insur- Barbados Catastrophe Risk Man- for locally owned properties. amice. agement and Insurance Reform Joint purchase of insurance cov- Project. erage is an imperative (given the similar exposure) to lower cost through increased portfolio. 29 ECCB Credit Market Report, Feb 15, 2002 Grenada Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. t7 K-ew'tl-h% u- r'a-n c'e h ainid~ ' ~ Risk Pooling and Di- p'IJ idg e, If4Is'uran . Pubic ,Asset Coverage Risk Financing einsurance 7Cvrg ersirlctio Lcade rshir.ph'ield bt prouid, d by Aboul 10t0`1 oolinpan) build the private enterprises that are ings are insured to actual value leaders infinancial mnanagement because the terms and conditions particularly the insurance sector. of the debt capital require build- ing standards are strictly adhered to at all stages of the construc- tion. 7 About 100% of company build- ings are insured against all perils and are built in accordance with building standards In most cases, commercial prop- Mernbers erties are insured to their actual value to meet the conditionalities of the overdraft facilities. No coverage is taken for busi,tess interruption, given the low inci- dence of disaster since 195S. Private firns do not cover comn- pensation for employees. There is needfor legislation to enforce the insurance of private property. There is need for moreforward planning by the private sector. References The information on risk transfer practices is the product of: (I) The consultant's first hand knowledge of the OECS insurance market, having being involved in market development since 1991. (2) Research on the insurance market, govemment planning and macro-economic policies, sub-regional disaster agencies, the private sector and NGOs in mitigation efforts. (3) Discussions with market players in insurance, regulation, planning, and disaster mitigation including: * Mr. Dennis Clarke, Director of Economic Affairs, Ministry of Finance and Planning, St George's, Grenada. * David Phillip. Managing Director, NALGICO, St George's, Grenada. 30 Estimates were provided by David Phillip, Managing Director, NALGICO, one, of the leading property underwriter in the market. Pave 91 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps JAMAICA Pave 92 Jamaica Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. p3w1a4^;t%>,.4[ a1Ai11( -'& a'> e ssessment-and' ,.- .f. <1s; .Vulfbrtability Assessment ~~ ~ ~ ,~~: ..4~,. j~~; - ~~ VuI~rabiIiti' Assessment I ~~~ Risk Asse'ssment ______________________ .r.,*Soc '- ononuc I --'Phvsical | En%ironmental Local Communities have basic informa- Communities aware of vulnerabil- Vulnerability assessments based on tion about hazard vulnerability and ity. first hand knowledge of community considerable historical information Informal identification of vulner- members. about hazard prone areas. able sub-groups (eg via churches Rio Minho landslide map includes Some commnunity groups trained in knowledge of elderly and disabled.) location of critical facilities. use of hazard maps (eg Portland.) Noformal identification of vulner- Maps have guidelines for able sub-groups. interpretation and use. Population groups aware of haz- ards. UWI working on atlas of small Civil Society communities, starting with King- (Communities and their ston and St. Andrew. Community organizations) groups to provide them with infor- mation useful for when building or buying homes. Generally, there is poor distribu- tion of hazard maps and a need to translate technical information on maps into nore usefulformatfor use by community groups. Community training only done as part of individual projects and is not sustained or sufficiently wide- spread. Disaster Coordinator maintains Policy database of shelters and remedial action needed. Need hazard maps to cover all of Local Government Portland and other parts of coun- try. Technical Maps need to be made mare user friendly by inserting missing de- scriptions, altering level of detail to reflect user groups. Few comntittees have copies of Committees identify vulnerable Assist ODPEM to maintain data- hazard maps. groups. base of shelters. Local Disaster Committees (exist in Some training in use of maps most but not all communities) started in Portland. Poor distribution of naps to com- munities. Pave 93 Jamaica Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ~~~ V ~~~~~"~~~~i U4: s2ewws -VuWinrabiliti'y A's"essnient [ ____________=______ |Sodo-eiomict~ . ~ En'-ironmental Risk Assessment Na tioal .. - : . National Mitigation Programme Cnitical facilities reviewed by Pub- headed by ODPEM. National Miti- lic Works. If located in vulnerable gation Policy to be completed by areas, PWD uses structural meas- end 2002 with assistance from ures and regular maintenance to Central Planning and CDB.3' mitigate potential impacts. Sectoral Agencies cy National Disaster Committee Location of criticalfacilities in chaired by Prime Minister, includes hazard prone areas need to be all government ministries and reviewed. Many older buildings NGOs with ODPEM serving as were never subject to vulnerability secretariat. assessments. Available hazard mapping includes Ministry of Health has list of criti- NEPA has atlas identifying all Landslides for sections of Portland, cal health facilities and Ministry of ecosystems in the country. Rio Grande, Kingston metropolitan Works has list of roads and bridges. Indicators of environmental deg- area, St. Mary and Clarendon and Any vulnerability assessments only radation developed. Some based Rio Minho (more detailed maps rudimentary. on UN trends and indicators. exist for heavily populated areas); Water Resources Authority main- rudimentary earthquake; river tains functional database of sewage flooding for areas historically prone plants which is geo-referenced and to hazard (eg Rio Cobre); wind includes photos. damage for Kingston; storm surge for Kingston, parts of St. Catherine Need to develop comprehensive and Montego Bay. vulnerability assessments of all and Montego Bay. ~~~~~~~~~~criticalfacilities. Maps generated by many agencies, including UWI Department of Geology and Geography. Technical UWI produced Jamaica South Coast Sustainable Development Strategy as part of the Halcrow Geology and Natural Hazard Report (1998). This also covered earth- quake, flood and hurricane hazards in the area. Major agencies such as Depart- ments of Mines and Geology, Wa- ter Resources Authority, NEPA and ODPEM have most of the hazard maps. Water Resources Authority produce flood plain maps and use to inform their comments on development applications. NEPA and Forestry Divisions have 31 Caribbean Development Bank. Jamaica Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. . ' . rm VuIn'abij Assessment -. Risk Assessment ________ ____________________ ~ ..S -6.n W Z'j:'IPhvsical. Environmental %er) goLd GIS capacii5 and e,pen_. enced staff. UWI has prepared guidelines for use of Kingston Landslide maps. Available on UWI website to in- crease accessibility. Need for more hazard maps at appropriate scales to support deci- sion making and evaluation of development proposals. More technical data needed to support the vulnerability assess- ment process. Need to use hazard maps. Hazard mapping started in early ODPEM doing vulnerability as- No comprehensive list of critical 1990s. Previously used rudimentary sessments for areas in Portland facilities in one database. multi hazard maps based on histori- impacted by flooding and landslides cal data. in December 2001. Recommended National Disaster Office Hazard maps available for flooding. rehabilitation strategies and some relocation. ODPEM trying to develop GIS capability in-house. Acquired Arc Info and ArcView and some hard- ware. Insurance Company of the West Local bauxite companies get in- Indies has disaster wardens and volved in local disaster initiatives. provides training for them. UWI Not formal members of local disas- Department of Geology and Geog- ter committees. raphy conducted workshop for them Leaders on Understanding Natural Hazards and Disasters in early 2002. Business and Industry Institute of Engineers conducts workshops to sensitize insurance industry to risks. Jamaica Light and Power Company maintains GIS database of facilities, Members including infornation about each pole and has capacity to relate this to location of hazard prone areas. Pave 95 Jamaica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. _____________________________________ t-r-Socitt . '{.; J z%Fe-E}9,htsil \e s. s .A ,!S Cl- COijo0 c Env*ronmental Post-disaster Nleasures **i iv t >'8'^!¢ tts't42$ jte az.>:< . . Physical Meas'ures Socio-economic Environmental 'K Structural . Non-Structural Ar easures [ i Nleasures National: New public buildings conform to 1983 Jamaica National Building ELAs required for projects and Over 50 percent of government Jamaica National Building Code, Code (based on CUBIC) published include request for hazard infor- agencies have disaster plans. since they are designed by profes- as a Green Paper (ie endorsed by mation. sional engineers who adhere to Code govemment but not made law.) Code Jamaica's Environment 2001 - now being revised. Also use CUBIC Environmental Status and State of and California Codes. the Environment Report prepared Committee set up to review 1983 in 2001. Building Code has stalled due to National Environment anid Plan- confusion over which agency should ning Strategy to be prepared. Will be responsible. outline ani approach to mnitiga- Bureau of Standards developed stan- tion. Central Planning and Polic dards for building materials. Need tofiirther exploreforest Sectoral Agencies Y 70 percent of buildings not approved degradation and impact onflood- via formal planning system and most ing and la,tdslides. not built by trained contractors. Degradationt of erivironment due Development standards adequate to to agricultural practices, coal guide development in vulnerable anid wood-fire buninig and hu- areas. rnan settlemnents. Hazard maps very generalized and cannot be used for many site specific development applications. Hazard information needs to befully integrated into land use planning and development process. P,,or Inn Jamaica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. > - L W ,;Physlir e:, si" n Sl'Socio-ecooic Enviroental ~ Post-disaster Measures W Ide pread use of gablon baslkei' to NlonihI) roundiable dch.u won' held On.gong LI* I pr.jJei i o NEPA r.e~ Su.jinjhhl V er Humrnr Hr u Houg *\i enipo%'ers strengthen river banks. to evaluate development applications build awareness of landslides, shed Management as a mitigation Ministry of Housing to develop River training done in Portland to informally including various agen- empower people and develop tool. their own designs and housing contain river in its natural course. cies and ODPEM. a computer-based expert Environmental policies developed projects after a hurricane. More widespread than building sea Slope stabilization with plants to knowledge system. to protect some ecosystems eg defenses. reduce soil erosion used to reduce Flood Water Control Master Ridge to Reef Project, Watershed Regular drain maintenance by gov- impact of landslides. Plan being prepared in consul- Management Project in Rio emment. Other appropriate mitigation meas- tation with stakeholders. Grande and Great River water- Retaining walls (not widespread) ures suggested by ODPEM after site sheds and Trees for Tomorrow used to reduce impact of landslides. visits. More worklned torins t Use of hurricane straps and appro- NEPA uses hazard maps to impose More work needed to institetion- priat desgn t redce ipactfrom conditions in planning approvals. alize environmnental protection priate design to reduc-e impact from cniosinpaigaprvl,policies for ecosystemts and to wind damage. Some areas for which hazard maps polce ec s exist are not a priority for preparation value xlem. Bureau of Standards has building of development plans. Jamaica's coral reefs very de- materials committee, which pub- graded and need protection. lishes standards for building materi- Some guidelines prepared by NEPA als. to guide development in vulnerable Technical Qualified staff graduates from UWI areas, such as St. Ann's. and/or UTECH. Staff at many govemment agencies such as ODPEM and NEPA trained Certain housing agencies design and in natural hazard issues as graduates build housing without always pass- of UWI. ing through local authority approval systenm Need to develop building and devel- opment standards based on hazard and vulnerability information. National Building Code only ad- dresses structures without enphasis on other issues likeflooding, vulner- able locations or seismic hazards. Efforts to produce a volume of the building code dealing with small buildings were not successful. Need for guidelinesfor snmall buildings. Code not very well publicized and not all professionals have copy or use it. Page 101 Jamaica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. | ^ tt 6 1*- -, Physical MeAsures`:&j. E, Socio-econonic Environmental >.¢.- , ^. | ter Coor Tounhm Protlct De'elo _ )J.iJ. t lmsI dsisttlwn dinators attached to ODPEM. ment Committee requires submitted to or approved by Insurance industry has used informa- hotels to develop disaster ODPEM. tion about risks and vulnerable areas plans to be certified for hotel to increase premiums. operation. Plans must be sent to ODPEM for approval. Companies not offering premium reductions for use of risk reduction Red Cross initiated a project nmeasures or retrofitting techniques. to encourage hotels to write plans. Not very successful. Sandals hotel has a hurricane plan (not done on group/chain basis). Petroleum industry required to Business and have disaster plans. Also Industry Leadership prepare guidelines for haulers and contractors as required by their parent companies. Minis- try of Mines requires compa- nies to lodge a copy of their plans with ODPEM. Awareness and Preparedness for Emergency at Local Level: Programme provides for evacuation of nearby commu- nities in event of disaster. Developed following incident in Bhopal. No incentives offered by in- surance sector. Page 103 Jamaica Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ,,<.44. >.- 7+-,s 'Physical Neasures . Socio-economic Environnienal Post-disaster leasures 'Z Structural Non-Structural Nleasures Mleasures Grace Kennedy group assesses Grace Kennedy Group has Group Businesses participate in Grace Kennedy group has Con- vulnerability of buildings and struc- Disaster Preparedness Committee training programmes. tingency/Business Continuity tures. Contract safety engineers to comprising representatives from Communications media offer Plan. Companies can get workers conduct regular audits of buildings many group companies and divi- concessionary rates for public and their families home safely or and report to the company and the sions. Conduct annual Group Disas- information, awareness days to a safe place. Supplies available Safety Council. Reports included as ter Preparedness Seminar. and other projects. for key personnel who man sta- agenda item of main GK Board tions. meetings. Remedial measure quickly Cable and Wireless and Tex- implemented. aco sponsored simulation Individual hotels have nofonwlw exercise for Portland Evacua- hlurricane plans. tion Plan. Grace Kennedy has Disaster Manual, prepared with assis- Mem1bers tance from ODPEM in 1990/1. Updated regularly as a living document. Plan identifies company resources and infor- mation on families of key staff. Frequently test for state of readiness for each com- pany. Grace Kennedy Group partici- pates in public education programmes to increase awareness of disaster issues and retrofitting techniques. Page 104 Jamaica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or linmitations are listed in italics. nsuran tI S N " e e^t ,| uraecs and [ R Polig a Risk Financing ____________________________ ~._; v -4-Pubic:'ssetCoverage ~Biidget~SeIf1nsuraRci's'6rAnce -; PuIic,sse Diversirication Local . - One housing-related NGO offers About 30-50% of houses in the Traditional methods tofinance some information about hurricane fornal sector are insured. Most risks are under-utilized for a resistant improvements. houses in the informal sector are variety of reasons. Tlte demand Due tofinancial and other con- uninsured. Some commercial for alternative methods is there- straints, one housing-related properties are insured. Many fore likely to be non-existent due NGO, CR&DC, has virtually small business enterprises do not to knowledge gaps and the cur- abandoned mission to provide carry insurance against natural rent stage of development of the hurricane- resistant home im- disasters. Per capita spending on ,narket. provement programmes to reduce non-life insurance in 1997 was Civil Society vulnerability reduction and atten- estimated at US$76.32 (Communities and their organizations) tion to building standards. Re- Long-term savings to meet educa- volving loan financing was not tional goals more widespread available. than is planningfor natural Churches and other community disasters on a sustained basis.33 organizations do not appear to Compulsory insurance against have vulnerability reduction as natural disastersfor properties is part of their on-going pro- not mandated by law. grammnes. Catastrophe insurance penetra- tion across all sectors estimated at below 50 percent. Risk nanagentent perceived to fall exclusively within the ambit Policy of National Disaster Office [OD- Local government PEM] and not at the institutional level. Technical Local Disaster Committees 32 Stephens, Cedric E., Catastrophe Insurance in Jamaica: A Review of the Period 1989-1998 and Non-Life Insurers: are they playing an effective *ole ... ? 33 Ignorance about the nature of the risks and expectations of donor support could be contributors to the low rate of insurance penetration. Paee 105 Jamaica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. -~~~ M~Narket Insurance and 11 Rs oln n ; /' 4 - t-; - Bud|get Self Insurance j Reinsurance a Public Asset Coverage j Risk Financing National -. - - - Funds allocated in annual budget New insurance regulatory author- Policy ont public asset coverage Public insurable assets are cov- External financing sought ex-post for environmenlal planning and ity, Financial Services Commis- appears to be concerned largely ered on an instituttioni-by- event to address reconstruction disaster management based on sion, is in early stage of organiza- with procurement procedure institu(tion basis with no attempt and restoration. disaster plans. Budgetary con- tion after 30-year old Act re- compliance rather than withi at pooling. Finanicinig mechantisms restricted straints preclude complete provi- pealed and replaced by Insurance management of catastrophe risks. Policy in relation to public asset exclusively to ex-post disaster sion. Act 200 1. Staff and other re- Central goverment assets self- coverage seems to be concemed financing - no emphasis on pre- Actuarial assumnptions do not sources are being upgraded. New insured, exclussively wits i cotnpliacnce witi eventfilnancing. apparently underlayfunding funding arrangement in place. Assets of public corporations procurement guidelines than with provisions. The mainfocus of the insurance covered by private market. mititigating risks. Funding provisions are limited regutlatory authority has tended to Central Planning and Policy due to budgetary constraints. be in relation to the solvency of Poll o public asset players in the market place. The coverage seems to be concerned Sectoral Agencies Risk management perceived to agency has developed no explicit exclusively with compliance with fall exclusively within the ambit policies to manage systemic risks procurement guidelines than withi of National Disaster Office [OD- posed by natural disasters, catas- mitigating risks. PEMI and not at the institutional trophe-pricing policies or to level, ensurefair access to coverage. The creation of private catastro- phe reserves by way of tax incen- tives are not encouraged either to insurer s or other enterprises. Technical Persons occupying marginal lands should be relocated. Disaster office promotes the use Promotes risk reduction, with the National Disaster Office of hazard information develop- emphasis on saving lives. ment and investment decisions. Insurers, lenders, Chamber of Insurers do not promote schemes Most autonomous enterprises Commerce and community lead- that provide incentivesfor risk insured with private insurers. ers, most of whom belong to reduction or impletnent creative umbrella organization, PSOJ, plans to educate consumers about Business atid Industry, have notformed advisory council risks of natural disasters and Business and Industry, Leaders to Financial Services Commis- stimulate demand. Marketfor Financial sion, to promote best practicesfor insurance against natural disas- catastrophe perils and vulnerabil- ters very volatile. ity reduction methods. FSC board comprises ex-govemment sector officials almost exclusively. PaRe 106 Jamaica Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Nilarket Insurance and Risk Pooling and Budget Self Insurance sua e Public Asset Coverage Risk Financing . .. , - . , ~~~~Reinsurance Diversification Enterprises very dependent on Some commercial properties are loanfinancing. insured. Few business internrp- Lion insuranices are sold. Private comnmercial properties that are not subject to lending agreements may not be insured Members or, are only partially insured. There is no legislation nandating compulsory insurance except in the case of motor vehicles. Busi- ness interruption insurance is not sold to private enterprises as much as it should due in part to ignorance about the subject. Paope I07 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps-St. Kitts and Nevis ST. KITTS AND NEVIS P1ave 108 St. Kitts and Nevis Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. F|r. gi. . L -7 az d-;zar 4 ssessm n _Pltl_4 N6,. .~"V Inerability,Assessment Wif~.','d A nen Risk Assessment ____________________ c~~~ ~ .-J3li3' icI. Eniironnient.al Local - A suite of hazard maps prepared in Community groups in St. Kitts and Vulnerability studies done in 2001. High levels of awareness of envi- Noformal risk assessment carried 2001 for St. Kitts and Nevis under Nevis aware of some vulnerable Intemational Labour Organization ronmental systems and their out to identify vulnerable groups PGDM.34 Planning Department areas. Communities on volcanic (ILO) consultant working on train- importance but still not taken and settle,ne,its. considering fee structure to charge slopes less aware of potential dan- ing programmes for vulnerability seriously. for access to maps. ger than those in coastal areas. assessments. General public Imay ntot be aware NEMA's public relations officer Religious and service groups in St. Informationfrom vulnerability of extent of damnage to some sys- developing a public awareness Kitts and in Nevis support NEMA assessments not being used much tems like coral reefs. Civil Society campaign, which will publicize in disseminating information and by NEMA. maps. promoting public awareness via (Communities and their Local groups in St. Kitts and Nevis street banners and hurricane prepar- organizations) have basic training to identify haz- edness messages. ards and vulnerable areas. Red Cross discussing with NEMA Co.nmunity groups not widely the possibility of establishing Nevis aware of hazard mapping. as a focal point for distributing relief supplies for the region. Hazard maps not yet provided to communities Significant amount of housing in vulnerable coastal areas and on lower slopes of hills. Local Governmenit Policy n.a. Technical n.a. 8 disaster districts in St. Kits and 5 No formal risk assessment con- in Nevis. ducted but Committee members and Committees host public workshops communities have much local and on topics including purpose of historical knowledge. hazard mapping. Noformal risk assessments con- Promoting preparation of conmnu- ducted Local Disaster Comnaittees nity disaster plans. Committees in Nevis have no direct interaction with the Disaster Coor- dinator at NEMA in St. Kitts. Hazard maps not yet distributed to disaster committees in St. Kitts or Nevis. 34 USAtD/OAS Post-Georges Disaster Mitigation in Antigua/Barbuda and St. Kitts/Nevis, www.oas,org/ppdin Page 109 St. Kitts and Nevis Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. I >i-4. 'H aza rd iAssessmenltand -Vulnerability Assessment | Risk Assessment 'jM^> i .- Sapping | Socio-economic- Physical [Enironmental R National'.' National Disaster Mitigation Coun- Vulnerability assessment carried Good environmental legislation to NEMA encouraging govemment cil established. Chaired by Deputy out for new projects under 2000 protect environmental systems. agencies to inventory physical Prime Minister. Planning Act. Country Environmental Profile assets, especially as part of post Hazard maps not distributed to done in 1998. Identifies environ- disaster assessment. government agencies. mental systems, assesses them Inventories of physical assets not and deals with incidence of deg- widely done. radation and causes. Policy Department of Environment did recent workshops with wide cross section of stakeholders on land degradation. Environmnenztal legislation not adequately enforced due to lack of political will and humnan re- Central Planning and sources. Sectoral Agencies Consultant engaged at Physical Preliminary assessment of housing Planning Department under PGDM seclor done in 1999/2000 by to prepare hazard maps. NEMA on advice of National Miti- Physical Planning Department gation Council. preparing National Land Policy and Most assessments done in relation intend to incorporate hazard maps. to coastal areas and rivers. Technical Physical Planning Department produced maps for Agriculture Department to show areas of soil infertility and susceptibility to erosion. Hazard mapping not institutional- ized as maps prepared by consult- ants. Employs District Coordinator to National Disaster Office coordinate community pre- and post-disaster activities. Page 110 St. Kitts and Nevis Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or linmitations are listed in italics. 'HazardiAssessm.ntXand ..t>.- 4 - @ Physical Measures Socio-economic Environmental Post-disaster Nleasures -9 Ms 5,u£5-ural i. *,,,lion-Structurai .;v* M^. b leasures Nleasures In 20.101) public av3arenesi pro- SYorrage (J bullitipi I,'l p}cc'rs m gramme carried out with Chamber enforce code. of Commerce and community groups and other stakeholders to Technical sensitize them to Code. Used print media and leaflets/flyers. Many persons notfamiliar with Code. Further public awareness needed NEMA promoting use of hurricane National Disaster Mitigation Plan St. Kitts and Nevis Disaster shutters. developed under PGDM. Now before Plan exists. Company disaster Cabinet. and recovery plans are coordi- NEMA developed video for hurri- nated with it. cane proofing homes and showing Many technical staff have no where and how to build. Video aired formal training in disaster on TV. management but attended National Disaster Office NEMA preparing to host a train the many short courses and ac- trainers workshop with disaster quired considerable practical committees. knowledge and experience. NEMA not adequately staffed with technical expertise. Technical staff notformally trained in disaster nanage- mnent. Insufficient awareness and involve- Business community developed Some businesses have emer- ment of business community in haz- strong links with Ministry of Trade gency contingency plans and ard issues. and Commerce to cooperate in disas- hotels have disaster recovery ter preparedness. plans. Four Seasons hotel in No premium reductions offered by Nevis has a contingency plan. Insurance companiesfor use of miti- All hotels in Nevis asked to do gation measures. emergency plans by NEMA. Business and Leadership When hurricanes approach, most hotels evacuate guests Industry and close. Hotel and Tourism Associa- tion hold workshops to pro- mote development of hurri- cane contingency plans in hotel industry. Memtbers Appropriate building materials avail- able for sale. St. Kitts and Nevis Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. < . 2 V ; BF~'.' .dN-Iarket Insurance, . Public Asset Risk Pooling and J r 0 a nd*Reinsuirance,t' '.-' Coverage, Diversirication Local NGOs and otherforms of social There is no group insurancefor There is no riskfiiancinig ,necha- capital (cluf rches and community homeowners. Homeowners and nism that allows losses to be paid groups) are not involved in risk investors depend entirely on the off in thefuture through credit transfer. Their capital base do not small and sometimes under- facility. allowfor alternatives to insur- capitalized property insurance Commercial properties, particu- ance be it contingency credit or market, which, in some cases, larly, hotels that are part of inter- contingency equity. Moreover, the cannot bury adequate reinsurance, national chains, may be using risk clientele is not that sophisticated to provide insurance coverage. financing options that allow or knowledgeable. About 100% of properties in the multi-year coverage that would Some NGOs, particularly middle and upper income groups result in stabilizing premiums. churches, build up contingency are comprehensively insured to funds for providential purposes. actual value. NGOs are not involved in housing About 90% of properties in the Civil Society orproperty development. lower income group are not in- sured or are under-insured. (Communities and their organizations) Most properties are uninsurable due to building standards, type of material used and vulnerability - low-lying areas, on precipitous areas. Unlike the motor insurance indus- try, there is no cornpulsory insur- ancefor private properties. Given the vulnerability of the OECS sub-region to hurricane and volcanic actions, there is needfor compulsory insurance and sub-regional catastrophe poolfor private properties. [There is no local government Policy body. All activities are prosecuted Local government by national agencies.] Technical Local Disaster Conunittees 35 Estimates provided by the insurance regulator and based on my knowledge of the market. Page 115 St. Kitts and Nevis Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. - , * . - , , . Budget | arket Insurance 1 Publie Asset 1 Risk Pooling and n -i3> , k, -- j ;1t.,| , ,Self Insurance - and Reinsurance Coverage | Diversification National, ... Govemnment does not allocate The insurance regulatoryfimnc- Govenmment has taken policy The public assets which are in- Government sources external contingencyfunds in its arnual lion is inadequate. The office is decision for insuring critical sured include: credit for reconstruction and budget based on actuarial prob- poorly staffed, poorly equipped; public properties to reduce fiscal * Govemment Headquarters mitigation efforts. abilities but maintains a contin- has no staff memnber trained in risk. Annual premiums are esti- Electricity Department Additional contingent credit gency reserve, which is used for insurance and risk management. mated at EC$2 million.36 ThisDerari t acititial could credit emergency purposes. Some aspects of planning, zoning covers pubc buildings, schools, * NF France Hospital (i) World Bank Ecorionic Recov- Government would be expected to and hazard mapping (hazard hospitals, police stations, fire * Commrnc Hospital W ery Facility encourage tax incentives when the mapping for flooding and land- departments, defence force build- * ommuty ospita s erC F ity Catastrophe Pool is established slides) are being done by the ings, sporting complex etc. All Health Centres FiiC under The World Bank/CDB Physical Planning Department There is no publicfund or * CFB Community College Facility OECS and Barbados Catastrophe but there are no hazard maps mechanism established to indem- chools Risk Management and Insurance goveming insurer's levels of nify the poor or to provide incen- * Treasury Building Reform Project. catastrophe peril liabilities. tivefor undertaking mitigation * The Public Library Furthermore there is no current measures. However govemment * Coast Guard Building linkage between the Physical provides incentives for first * Drug Squad Building Planning Department and the homeowners in form of tax . Police Training Complex Insurance Regulator. breaks, and this has served as * Basseterre Police Station The insurance regulator needs incentives for building in accor- . Football Complex to: dance to building standards. * Net ball Complex (i) Have the capacity to do catas- Properties owned by the statutory Central Planning and trophe premium pricing. bodies are insured to actual val- Sectoral Agencies Policy (ii) Educate with respect to re- ues. ducing thefinancial impact of Government middle and low- events and minimizing the prob- income homes (part of the 1000 ability of avoidable losses. project) are insured with local insurance companies. Govemment needs to explore the feasibility of (i) Establishing investing in con- tingency credit and contingency equity to increase liquidityfor rehabilitating damiaged buildings, schools, hospitals, waterfacili- ties, ports, roads bridges using credit and capital market instru- mzents. (ii) Establishing an insurance schemze for catastrophe risk cov- eragefor low-income groups pariticlarly those in vulnerable areas - squatters and illegal occupiers. (iii) Upgrading sluon projects withl_ 36 List of Government Properties for Insurance, Ministry of Finance, Development and Planning, 2001 St. Kitts and Nevis Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. "..udget -Mlarket Insurance Public Asset Risk Pooling and Rs iacn .F ei-insurance and Reinisurance Coverage Diversirication the appropriate infrastructure improvement, retrofitting and, in some cases, relocation. Technical Budgetary allocations are made (i) NEMA promotes risk reduc- towards the National Emergency tion through the national commit- management Agency (NEMA) tees, public education and aware- only for operations. No emergency ness programs, national training funds are deployed for contingen- programs, literature distribution cies. and media programs. Government has EC$2.9 millions NEMA needs to: National Disaster Office in a Fiscal Tranche at the Central (i) embark on a broad based Bank, which is a contingency insurance, risk management and fund.17 disaster preparedness education NEMA depends largely on inflows programme fromn regional and international (ii) emphasize retrofitting, wain- donors in the afternwth of a disas- tenance and building standards ter. and insurance coverage There is no Advisory Council Some Insurance companies pro- Public auto,nonwus enterprises Sugar: There is no risk transfer Alternative riskfinancingfor thle drawn from the wider society or vide incentives to homeowners under the management of the mechanism or self- insurance. business and industry would the productive sector. such as lower premium rates for central govenmment sUclI as Water The industry is a financial burden involve: The work of NEMA should be risk reduction not for risk as- and Electricity are not adequately and is in transition. (i) Allocation of capital re.sene broaden to include a Technical sessment and management insured because of small profit during the profitable years to be Advisory Team drawnform checks. nwrgins and govemment'sfiscal Tourism: There is no risk trans- used as collateral for debtfinanc- NGOs, banking, insurance, indus- constraints but the government fer mechanism or self- Insurance ingfor reconstruction effort. Business and Industry, Leaders try and engineering to advise the statutory bodies are insur ed to for locally owned properties. (ii) Use of capital mnarket instru- Financial Insurance Regulator and to pro- actual value. Joinit purchase of insurance cov- nuents to generate raise equity mote best practices. Pooling nmethod would most ap- erage is an imperative (given the capitalfor the recovery effort propriatefor these enterprises. simnilar exposure) to lower cost (iii) Creatiotn of a venture capital These are to be covered under throuigh increased portfolio. fund to suipplement recoveries The World Bank/CDB OECS and front business internrption insur- Barbados Catastrophe Risk Mani- amice. agemnent atnd Insurance Reforni Project. 37 ECCB Credit Market Report, Feb 15, 2002 Paee 117 St. Kitts and Nevis Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. - p Y 1 f>w+4 ^ - ;-t- - - t Budget - NlMarket Insurance Public Asset Risk Pooling and 4. t -' :? -^Self Insurance and Reinsurance Coverage Diversification LeadersIiip shmild be pro. idvJ Jb) About l00Yr' of nompan) build the private enterprises that are ings are insured to actual value leaders in financial management; because the terms and conditions have a history of adequate insur- of the debt capital require build- ance coverage; adlhere to building ing standards are strictly adhered standards; and enjoy a strong to at all stages of the construc- institutional advocacy and good- tion.38 will. About 100% of company build- ings are insured against all perils and are built in accordance with building standards Members About 50% of private firms buy business interruption insurance but these do not cover compensa- tionfor employees. Insurance companies offer lower rates where prescribed building standards are applied in the con- struction phase and for retrofit investment. 77Tere is needfor legislation to enforce the insurance ofprivate property. References The infornation on risk transfer practices is the product of: (1) The consultant's first hand knowledge of the OECS insurance market, having being involved in market development since 1991. (2) Research on the insurance market, govemment planning and macro-economic policies, sub-regional disaster agencies, the private sector and NGOs in mitigation efforts. (3) Discussions with market players in insurance, regulation, planning, and disaster mitigation including: * Mrs. Ruth Joseph, Insurance Regulator, Ministry of Finance, Basseterre, St Kitts * Mr. Oliver Knight, Director of Planning, Ministry of Finance, Development and Planning, Basseterre, St Kitts * Mr. Patrick Williams, Senior Physical Planning Officer, Ministry of Finance, Development and Planning, Basseterre, St Kitts 38 Estimates are based on discussions with the insurance regulator and based on my knowledge of the market. Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps ST. LUCIA PaNee 119 St. Lucia Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. . ,. , , ,f, * i H~azandgMs;e;ssmnZn .ffie a u'd^ { ,V)>ulnerability,vAssessment - r - , c oo j 1.- 'ePh Assc smen Environmental Risk Assessment. Local- :- .. . .. : .:': .: . , .: , :. ', .: .: .. ;, : , ,,. . .' Physical Lo'Cal Under World Bank Project, Red National consultations held with Ministry of Works assists some Need for local groups to receive Vulnerable groups and facilities Cross works with local disaster service and religious groups. conununity groups to conduct as- environmental training. identified. committees to train communities to Low level of participation in train- sessments of physical structures. identify hazards. Completed in 7 ing to identify vulnerability. conununities with 6 remaining. Civil Society comuitaes wit acnng Due to topography of island, there Lack of importance attached to is niuch housing in hazard prone (Communities and their earthquakes. areas like hillsides, coastal areas organizations) and riverbanks. Much development located in haz- ard prone areas due to unplanned development and squatting which is still occurring. Castries City Council took on some disaster management functions for Castries. Functions as a local disas- ter committee for food distribution. Policy City Council conducts annual shel- Local Govemnment ter assessments. Invite public to nominate structures to be used as shelters and these are inspected by Ministry of Works to determine suitability. Technical Hazard maps used to identify flood Committees assist in identifying Disaster conmittees not provided prone areas and inform committees. vulnerable structures. with copies of hazard maps. Commrittees also pass on local and historical information to NEMA. Local Disaster Committees Committees do not have copies of hazard maps. Must access them at Physical Planning Department. Committee members not trainzed to interpret maps. Paee 120 St. Lucia Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. d:Haza=rd4Assessmefit mid ..unerblt IraY^i! tHAsesmnt ansd ^,.Pt--, . Z 'erabilinyAsemn Risk Assessment 5=), , -~~1~iin.t .................... >'Soio-econiomic '|P>.......... Ph'sical Environmentatl RsAssmn National .. ... Draft Mitigation Plan prepared but Ministry of Community Develop- Environmental systems not well not yet adopted. ment cooperating with Women and protected. National Mitigation Council estab- Development Unit from UWI Bar- lished in 2001 to oversee vulner- bados on study of Women's Vul- Central Planning and Policy abitity mapping component of nerability to Social and Natural Sectoral Agenaes World Bank Project. Chaired by Disasters in 6 communities in Minister of Works. south-east. National Emergency Advisory National consultations held. Council set up. Vulnerable groups identified. Landslide (1985) and debris (1995) Ministry of Works conducted vul- hazard maps prepared. Landslide nerability exercise for government map updated 1995. Coastal Hazard buildings. map (1980) includes volcano, flooding, storm winds, landslides and earthquake prone areas in coastal zone. Japanese funding available to Min- istry of Planning for flood map World Bank Hazard Management Project includes a mapping compo- nent, which will review earlier maps. Technical Working Commit- tee will guide how maps will evolve. Technical Maps used by Physical Planning to appraise development applications and in strategic plan preparation. Used by other departments to assist in project planning and routine work. Physical Planning now trying to produce maps more applicable to local planning. Most hazard mapping done by external consultants, therefore local expertise may be limited and pro- cedures not institutionalized. Legends on nips need to be refined to be more useful and to define termis such as 'extreme, high and moderate vulnerability'. Pape 121 St. Lucia Table 1: Risk Identification - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. WA Risk Assessment g->; i- - . . 0sq . fi g-H<>sla, p igZ''.ctt cise6onomiWe. ';fil Envon Ha; accees io hazard rnapi NENIO inolohed in IdeniltIng NENIO inpecii ,onme Liell,uev .' NENIO ine, no m.,ke hnk be. NEMO promotes development and vulnerable groups. part of hurricane preparedness tween environmental degradation use of hazard information across all NEMO organizes awareness and programme. and vulnerability and increase National Disaster fice sectors. vulnerability reduction programmes Vulnerability assessments of stnrc- awareness across all sectors. for some vulnerable groups. tures conducted by Ministry of Works but notforNarded to NEMO. NEMO should have list and par- ticipate in regular updates. During the last 3 years, the Ministry of Tourism with NEMA and Fire Services held I day training ses- Leaders sions to sensitize small property Business and Industry owners to hazards. Low attendance. Businesses do not have copies of hazard naps. Members Page 122 St. Lucia Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limnitations are listed in italics. r,~~~~~~ Physical Nt1easures | oi cnmc | Environmental | Socio-econonuic 4g2#j6p,S . a .,a I Non-Structural, ,_ - MNeasures Nleasures Post-disaster Nleasures Local Ministry of Works assists some NEMO in talks with commu- Appropriate building materials community groups to carry out nity college and adult educa- available. remedial work on buildings that tion programme to introduce Corinnunities participate in some were assessed to be in need of re- hazard information. damage assessment. pair. CDERA offered modular NEMO collaborating with the Pov- community-based disaster Civil Society erty Reduction Fund (Ministry of course to community college (Communities and their Social Transformation) to carry out and adult education pro- organizations) infrastructure work on self help gramme. basis in vulnerable communities. NEMO gives talks to schools Needfor displays of appropriate when invited. building techniques. Need mnore structure approach with Ministry of Education to incorporate hazard inforna- tion into curricula. Policy Local Govemment Technical NEMO bringing together commit- Committees have a type of tees with Poverty Reduction Fund to 'Contingency Plan', which get advice on preparing project identifies community re- . . proposals for funding works. sources and their owners and Local Disaster Comnuittees vulnerable groups. Plan re- vised annually. No comrnunity mitigation plans in place. St. Lucia Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. sR., .t b :>S>;ff5eXl iPhysical Measures 1-econo c En%ironmental V(~^X^ < -N* gw,tl! =pusclfural 3; '- '; ; , -'Non Struclura! -e-ff | t Socio-ecosoresc | E Ieasurnes Post-disaster Nleasures kt~~. ~ ~ S*t~ttii~~'~~ii - ',> ~~~N o~ Strii easures- Nleasures National Public buildings conform to stan- 1988 Manual for Developers used to OECS Solid Waste project Sustainable Development Com- National response Plan previously dards. identify criteria for location of de- identified deficiencies in mittee comprises NEMA, Solid prepared and adopted. Now under Infrastnrcture and other built devel- velopment to avoid hazard-prone waste disposal that increase Waste, Agriculture Lands and review. opment located in hazard prone areas. vulnerability. Fisheries; and National Conserva- Some government incentives areas. Manual available to public and fa- tion Council. offered for post disaster recovery miliar to developers and contractors. E[As requested under previous efforts. Also use CUBIC to guide construc- planning legislation but are now a Post disaster measures tied to tion. requirement under new Act. donor agencies and usually for Training at Sir Arthur Lewis Com- High degree of compliance from capital works such as building sea munity College includes construction developers for EIA. walls, strengthening retaining management, building construction EIAs reviewed by many agencies walls and rebuilding structures. and architectural studies. who may also be involved in Meteorological Office preparing to preparing TOR for EIA. set up an Early Warning System. Agencies responsible for protect- Building Code already drafted but ing environmental systems in- not yet adopted. cluded in review of development proposals and identify potential Need workshops to sensitize govern- impacts and mitigation measures ment, public and constnrction sector needed. on requirements of code. Central Planning and on H urecne of te. ElAs circulated for comnmnenzt on Sectoral Agencies Policy Huirricane Mitigation techiniques not sectoral basis. Coniiprehensive well detailed in existing standards. EIA Pnot sent to individual agen- New building code addresses this cies/sectors. deficiency. NEMO Act #13 of 2000 and Dis- Existing Manualfor Developers aster Emergency Response Act focuses on land use criteria and require EMAs be copied to NEMO. layouts. It is not constrnction- EIAs not circulated to NEMO. oriented. No hazard assessment required as No flood markers erected. part of project appraisal. Some legislation to protect en vi- ronmnental systetns not adequately enforced due to lack of resources anid suitably qualified staff. Thlere is nio Department of the Environmenit and no umbrella enivironmtiental legislationt. Agriicultture and forestrY prac- tices, butilt development and squiattinig conitnbutte to environ- mtenital degrcadation. St. Lucia Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. - ;. . . - .; . n- . -; .; - ; -t Physical NMeasures Socio-economic En-ironmental Post-disaster lSleasures , .4 Structural Non-Structural Measures Mleasures Stifi faliuiar viih de%elopnienl World Bank Projeci includes Irjining Bunme'i Coniinuit) Plans NIiniltnte v N\oikb, Tourism Jnd standards. of shelter managers, reinforcing prepared by Prison, Port Au- Agriculture do damage assess- channel of river near Hewanorra to thority, Hospital and Ministry nients. Combined report (if indi- reduce flooding, of Works. vidual reports received within 48 Lack of inspectors and resourcesfor hours) subminted to Chairman of Technical mnonhtoring. National Damage Assessmient Committee. Cultural sector re- cently included. Need to inIclide chiurches in pre- paring assessnments for inclusion int National Danwge Assessnent Report. NEMO arranges funds for repair of NEMO produces "Be Safe" leaflets Matrix of hazard events that some private buildings used as shel- advising persons of actions to take in occurred in St. Lucia, includes ters. event of hazard. Some information event, number of people dead and also reproduced from NEMA in cost of damage. Trinidad. Post Disaster Damage Assess- National Disaster Office Funding from German government ment Team includes private sec- via OECS to produce flyers. tor engineers and quantity sur- NEMO has good working relation- veyors. ship with media and carries out much public awareness and education work. St. Lucia Table 2: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. TPhysical Measures. Socio-econontic E Posl-disasler Nleasures siA - .n'. ' @ §t te : S .,' Non-Structural - X . Measures Nleasures Cable and Wireless has Busi- ness Continuity Planner and Standard Operating Proce- dures, which are regularly updated and reviewed by NEMA. Business Continuity Plans being finalized for tourism sector with contributions from heritage tourism sub-sector and their property owners. Caribbean Tourism Organiza- Leadership tion has hurricane plan, which advises hotels of actions to take during a hazard event. LUCELEC has hurricane plan. Businesses not identifying what actions they need to take Business and to ensure their corporate sustainability in event of a Industry hazard event. Hotel and tourism sector not advised on what to do in event of hazard other than a hurri- cane. NEMWIL and British American Bank of St- Lucia has a recovery Insurance companies offer premium plan that commits them to be reductions if houses incorporate ready to conduct business within disaster reduction measures. 6 hours of an all clear signal from Insurance companies reluctant to NEMO after a hazard event. insure wooden buildings. Many businesses only doing regular building maintenance Memnbers work, sandbagging during hurri- canes. Appropriate building materials available. Buisiniesses niot coniductinig struc- turic assessrmietits of their build- inPgs. Pnve' 126 St. Lucia Table 3: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. '~~ I ~ I Nia~rket Insurance and IRs oln n w Budget Self InsuranceR acj Public Asset Coverage Dvrilain j Risk Financing NGOs are niot involved in risk Thtere is no group insurance for Ther-e is nio risk finzancinig inecha- transfer. homewowners. Homeownzers and nism that allows losses to be paid There is no alternatives to insur- investors depend entirely oni the off in the future thryough credit ance be it contingency credit or property insutrance market, faicility. contingency equtity. which, although some carriers Commnercial properties, particu- Friedly ocieies perae a cannot buy adequate reinsurance. larly, hotels that are part of inter- "loose" formn of self-insurance for Most properties in the miiddle and national chains, may be using risk their parishioners through infor- upper income groups are compre- financing options that allow mal welfare schemes. hensively insured to actual value multi-year cover-age that would as this forms part of the mortgage result in stabilizing premiums. Some churches build up contin- agreement. gency funds for providential Asinfctpeetaeopr- purposes. Asgiiatpretg frp erties in the lower incomie group NGOs are not involved in housing are under-insuired or are not or property developmnent, insured because of the high de- Civil Society duictible on catastrophe insur- (Commuinities and thieir organizations) ance, high premium rates and the relatively lontg period withtout a major catastrophe. Many of the properties in the lower incotne group are uninsur- able due to building standards, type of material used and vulner- ability - low-lying areas, on precipitous areas. Unlike the motor insurance indus- try, there is no compulsory insur- ance for private properties. Given St Lucia's vulnerability to hurricane and volcanic actions. there is a critical need for com- pulsory inisurance for properties. [There is no local govemnment Poltcy body. All activities are prosecuted Local governmient by a national agency.] Technical Local Disaster Conunittees Page 127 St. Lucia Table 3: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or lintitations are listed in italics. 7 ~ ~~~~~~~~~i nuacead - ik Pooling anid 111impebvt e P lC,Assel Coverage Risk Financing nsisrance Div ' :* inersifica ion National - . - . - ' : Government does not allocate The insurance regulatory function Government has no policyfor The public assets which are in- Government sources extemal contingencyfiunds in its arnual is relatively developed but inade- insuring public assets. Only cer- sured include: credit for reconstruction and budget based on actuarial prob- quatefor the demands of the tain assets are insured. * Government Headquarters mitigation efforts. abilities. market. The public properties, which are * The Parliament Building Additional continigenit credit However a Contingency Fund The office is fairly staffed and insured, are covered under the * The Graham Louisy Ad- facilities could include: EC$1.6 million and a Capital equipped but the staff has limited specific loan conditions and lease ministration Building (i) World Bank Economic Recov- Contingency Fund of EC$ 1.1 technical skill in risk manage- arrangement. * The National Cricket ery Facility million are available as part of the ment. EC$500,000 are allocated annu- Ground (ii) CDB Disaster Mitigation risk transfers policy.39 Some aspects of planning, zoning ally for premium payments. 40 NB: All other public assets are Facility Government will be expected to and hazard mapping (hazard There is no publicfwmd or not insured. encourage tax incentives when mapping for flooding and land- mechanism established to indem- the Catastrophe Pool is estab- slides) are being done by the nify the poor or to provide inceit- lished under The World Physical Planning Department. tivefor undertaking mitigation aPolI Bank/CDB OECS and Barbados However there are no hazard measures. Central Planning and PolIcy Catastrophe Risk Management maps goveming insurer's levels Sectoral Agencies and Insurance Reforn Project. of catastrophe peril liabilities, no Governent needs to explore the functional linkage between the feasibility of physical planning and the insur- (i) Investing in contingency credit ance regulation, and very little and contingency equity to in- enforcement. crease liquidityfor rehabilitating damaged buildings, sc/tools, The insurance reguilator needs to: hospitals, waterfacilities. ports, (i) Have the capacity to do catas- roads bridges using credit and trophe premtium pricing. capital market instnuments. (ii) Educate with respect to (ii) Providing incentivesfor ca- reducing thefinancial impact of tastrophe risk coveragefor low- events and; minimizing the prob- income groups particularly those ability of avoidable losses. occupying areas prone to land- slide such as squatters. Technical 39 Comptroller of Budget, Ministry of Finance 4 Comptroller of Budget, Ministry of Finance Paee 128 St. Lucia Table 3: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. _- ;- a 4 r, - ,,t,,,tr>, ; ~ _ _ 1 1 t - lSlarket tnsurance and Risk Pooling and 1 Budget Self Insurance - . Public Asset Coverage Risk Financing '. .R .> .einsurance Di*ersification Budgelir) alloc.auon' are made NENIO prormole. nrsk reduction towards the National Emergency through the national committees, Management Office (NEMO) public education and awareness only for operations. No emer- programs throughout the year but gencyfunds are deployedfor is more active during the huri- contingencies. cane season. National Disaster Office NEMO depends largely on in- NEMO needs to: flowsfrom regional and interna- (i) embark on a broad based tional donors in the aftermath of insurance, risk management and a disaster. disaster preparedness education programme (ii) emphasize retrofitting, main- tenance and building standards and insurance coverage There is no society-wide Advisory Some insurance companies pro- Public autonomous enterprises Banana Industry: The Wind- Alternative riskfinancingfor the Council but local Focal Points vide incentives (to homeowners) under the management of the ward Island Crop Insurance business antd industry would are very active in education and such as lower premium rates for central govemment such as Water (WINCROP) provides a measure involve: awareness programmes. risk reduction not for risk assess- and Electricity are insured to of protection for windstorm dam- (i) Allocation of capital reserve The work of NEMO must be ment and management checks. actual value. age, but there is no risk transfer durinig the profitable years to be broaden to include a Technical All statutory bodies such as the inechanism or self- insurance. used as collateralfor debtfinanc- Advisory Team drawnfonr port are insured to actual value. Reservintg is however ,tever suffi- ingfor reconstructioni effort. NGOs, banking, insurance, indus- Pooling rnethod would muost be cient to bail o.t the industry in (ii) Use of capital market instru- Business and Industry, Leaders try and engineering to advise the appropriate for these enterprises. difficul t periods.mettognreraseqiy Financial Insurance Regulator and to pro- These are to be covered under Tourism: There is no risk trans- capitalfor the recovery effort mote best practices. The World Bank/CDB OECS and fer mnechanism or self- insurance (iii) Creation of a venitiure capital The National Development Foun- Barbados Catastrophe Risk Man- for locally owned properties. fund to supplement recoveries dation has organized safer build- agetnent and Insurance Refort Joint purchase of insurance cov- fom business interruptoto insur- ing training, a home retrofit loan Project. erage is an imperative (given the program and a group insurance simnilar exposure) to lower cost program for lower income home- through increased portfolio. owners. St. Lucia Table 3: Risk Reduction - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Nlrketf,Insurance and Risk Pooling and Bu 'et'Selfi nsiiranc !a, , . e p t , _w t-t'> . S ' > Physical N\easures Socio-economic Enironmental iStrudural Non-Structural Nleasures leasures Flood Nlugaiton projec lunded b) Japanese about to be implemented in Marriaqua Valley. Will include flood maps. Mitigation measures taken by utili- ties to protect their critical facilities and take action to restore them to service if affected by hazard event. Major agencies represented on Na- Tecinical tional Advisory Council, which is the highest decision making body for disaster management in St. Vincent. Central Planning Division not ade- quately staffed with Inspectors to monitor development and enforce regulations. Also not well staffed with planners to prepare lanid use policies to guide location of devel- oprment. NEO conducts public awareness campaigns at start of hurricane sea- National Disaster Office son to disseminate information about mitigation and retrofitting tech- niques. Caribbean Tourism Associa- tion recently prepared a Huni- Leadership cane Preparedness Manual for Business and hotels. All hotels have copies Industry and are expected to use it. Memibers Carenage Bay Hotel has disas- ter plan. P-o, I VZ St. Vincent and the Grenadines Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. N*iarket Insurance and . Risk Pooling and ~~iuBud~et Sefoinsuaiei I ublic-AssetCo erg tA' ',; . j fg>nee ,.- t einsurance .; - P j Diversification Risk Financing Local ---. :: NGOs are not involved in risk Tltere is no group insurancefor There is no riskfinancing mecha- transfer. homeowners. Homeowners and nismi that allows losses to be paid There are no alternatives to in- investors depend entirely on the off in thefiuture through credit surance, either contingency credit property insurance market. facility. or contingency equity. Most properties in the middle and Commercial properties, particu- A few churches operate a "loose" upper income groups are compre- larly, hotels that are part of inter- form of self-insurance for their hensively property insurance to national chains, may be using risk parishioners through informal actual value as full insurance financing options that allow welfare schemes coverage forms part of the mort- multi-year coverage that would Some churches build up contin- gage agreement. result in stabilizing premiums. gency funds for providential A significant percentage of the purposes through the establish- housing stock in the lower inco,ne ment of "Friendly Societies." group is under-insured or has no insurance coverage as result of Civil Society NGOs are not involved in housing income loss, poor education, and (Communities and their organizations) or property development, a general disposition to make no provisionsfor insurance of prop- erty.4 Some properties are uninsurable due to building standards, type of naterial used and vulnerability - low-lying areas, on precipitous areas. Unlike the motor insurance indus- try, there is no comnpulsory insur- ancefor private properties. Given the islands' vulnerability to volcanic actions, there is need for compulsory insurance for proper- ties. [There is no local govemment Policy body. All activities are prosecuted Local government by a national agency. ] Technical Local Disaster Conmnittees 4' Like its neigbour, Grenada, the islands were last affected by a hurricane in 1955. Parte 136 St. Vincent and the Grenadines Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. Ilre nu acand Risk Poigand 1iudget Self Insurance Public Assel Coverage isk Financing -- - udgt Self nsurance .Reisesurancae Diversirication National Govemment does not allocate The insurance regulatoryfunction Govenmment has no policyfor The public assets which are in- Govemment sources extemal contingencyfunds in its annual is inadequate. The office is poorly insuring public assets. Most pub- sured include: credit for reconstruction and budget based on actuarial prob- staffed but is equipped with a fair lic assets are uninsured * Govemment Headquarters mitigation efforts. abilities amounit of technical skill. Skills in The public properties, which are * The Fisheries Complex Additional contingent credit NB: Th7e absence of deliberate risk management are li,mited. insured, are covered under the * The Amos Vale Playing facilities couild include: risk transfer policy may be partly Some aspects of planning, zoning specific loan conditions and lease Field (i) World Bank Economic Recov- due to thefact that the country and hazard mapping (hazard arrangement. 42 * The National Stadium erv Facility has not had a tajor disaster (fire, mapping for flooding and land- There is no public fund or NB: All other public assets are (ii) CDB Disaster Mitigation volcanic and hurricane) recently, slides) are being done by the mnechanism establislhed to indemn- not insured. Facility although it is often moderately Physical Planning Department. nify the poor or to provide incen- affected by windstorms during the However there are no hazard tivefor undertaking mitigation hurricane season. maps goveming insurer's levels measures. PoiyGovernment will be expected to of catastrophe peril liabilities, no Central Planning and encourage tax incentives when functional linkage between physi- Govemment needs to explore the Sectoral Agencies the Catastrophe Pool is estab- cal planning and the insurance feasibility of lished under The Worid regulation, and very little en- (i) Investing in contingency credit Ban k/CDB OECS and Barbados forcemtent. and contingency equity to in- crease liquidityfor rehabilitating Catastrophe Risk Management The insurance regulator needs to: damaged buildings, schools, and Insurance Refonn Project. (i) Have the capacity to do catas- hospitals, waterfacilities, ports, trophe premium pricing. roads bridges using credit and (ii) Educate with respect to capital market instruments. reducing the financial impact of (ii) Providing incentivesfor ca- events and minimizing the prob- tastrophe risk coveragefor low- ability of avoidable losses. income groups particularly those occupying areas prone to land- slide such as squatters. Technical 42 Annual budgetary premium for the Govemment Headquarters is about EC$200, 000 according Mr. Isaac Solomon, Budget Director, Ministry of Finance and Planning Page 137 St. Vincent and the Grenadines Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. 2 Nakei Insujrance and RisuPolngan _ insura!nsu'nce -ear nsurance e Public Asset Coverage Risk Financing e - ... Public Asset Coverage Diversirlca(ion Budgeuar) allfocaIon. .re made NDPC pwnnutcr nslk reduciion towards the National Disaster through the national commnittees, Preparedness Committee (NDPC) public education and awareness only for operations. No emer- programs mainly during the hur- gency funds are deployed for ricane season. contingencies. NDPC needs to: National Disaster Office Government has EC$3.5 millions (i) embark on a broad based National Disaster Office in a Fiscal Tranche at the Central insurance, risk management and Bank, which is a contingency disasterpreparedness education fund.43 programnime NDPC depends largely on inflows (ii) emphasize retrofitting, main- from regional and international tenance and building standards donors in the aftennath of a dis- and insurance coverage aster. There is no society-wide Advisory Insurance companies do not Public autonomous enterprises Banana Industry: The Wind- Alternative riskfinancingfor thle Council. provide incentives to homeowners under the managenent of the ward Island Crop Insurance business and industry would The work of NDOC must be such as lowerpremium ratesfor central govemnment such as Water (WINCROP) provides a measure involve: broadened to include a Technical risk reduction orfor risk assess- and Electricity are not adequately of protection for windstorm dam- (i) Allocation of capital reserve Advisory Team drawnform ment and management checks. insured because of general mood age, but there is no risk transfer during the profitable years to be NGOs. banking, insurance, indos- in the insurance nuarket. mechanis,r or self- insura,zce. used as collateralfor debtfinauic- try and engineering to advise the Statutory bodies such as the port Tourism: Thlere is nzo risk tranis- ing for reconstnrction effort. Business and Industry Leaders Insurance Regulator and to pro- are insured to actual value. fer nzecha,uisnm or self- insurance (ii) Use of capital market instnr- Financial mote best practices. Pooling method would most be for locally owned properties. mnents to genierate raise eqtity appropriatefor these enterprises. Joint purchase of insurance cov- captalfor the recovery effort These are to be covered under erage is an imperative (given the (iii) Creation of a venture capital The World Bank/CDB OECS and similar exposure) to lower cost fiund to supplement recoveries Barbados Catastrophe Risk Man- through increased portfolio. from business interruption insur- agement and Insurance Refonn ance. Project 43 ECCB Credit Market Report, Feb 15, 2002 Page 138 St. Vincent and the Grenadines Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. sir . . . .Mlarket Insurance and Risk Pooling and .,,r> ,,f, .* ' . Budget Self Insurance Reinsurance Public Asset Coverage DiversificationRisk Financing Leadership should be provided by A high percentage of company the private enterprises that are buildings are insured to actual leaders in financial management value because the terms and con- particularly the insurance sector. ditions of the debt capital require building standards are strictly adhered to at all stages of the construction. Most company buildings are not insured against all perils. Members No coverage is taken for business interruption, given the low inici- dence of major catastrophes." Privatefinns do not cover com- pensation for employees. There is need for legislation to enforce the insurance of private property. There is needformorefonvard planning by the private sector. References The information on risk transfer practices is the product of: (1) The consultant first hand knowledge of the OECS insurance market, having being involved in market development since 1991. (2) Research on the insurance market, govemment planning and macro-economic policies, sub-regional disaster agencies, the private sector and NGOs in mitigation efforts. (3) Discussions with market players in insurance, regulation, planning, and disaster mitigation including: Mr. Isaac Solomon, Budget Director, Ministry of Finance and Planning 44 Like its neigbour, Grenada, Hurricane Janet hit St Vincent and the Grenadines in 1955. Pape 139 Natural Hazard Risk Management in the Caribbean Actual Practices and Gaps OECS AND CARICOM Page 140 OECS and CARICOM Table 1: Risk Identification - Actual Practices Note: Actual practices are described in plain type and gaps or limitations are listed in italics. -, 0 / '' n'ulnerabiliti Assessment R + - Is _ Rsk As --economic Physical Environmental essmen Subregional : . . . : : - - - : _____::.::: Detailed hazard mnaps not yet pre- GTZ Decentralized Disaster Project Lack of cornprehenisive institutionial The practice of integrating disas- OECS/NRMU preparing a Man- paredfor some countries. provides for developing a series of approacih to carrying out vulnler- ter management initiatives with ual and Guidelines on Post Disas- Inadequate distribuition of hiazard communication systems for risk ability assessnwents and iniadequtate environmental priorities is stated ter Rapid Environmental Assess- mnaps at the community level forecasting in St. Kitts/Nevis, Do- of coordination and conztunication in Principle 9 of the St. Georges nent for use in OECS to identify minica and St. Lucia where they between agencies at niational level. Declaration of Principles for environmental risks following a Need to produce hazard maps that will target poorer communities Environmental Sustainability in disaster and inform response can be easily understood and inter- affected by Tropical Stonn Debby. the OECS. decisions. Will include assess- preted at he conununity level. Member of staff of NRMU train- ment of OECS-wide response to ing in Environmental Auditing. Huricane Lenny and case studies of Antigua and St. Vincent. Includes participation from OAS, OECS Framework IDB, CIDA, USAID, Trinidad and Jamaica. Technical Manual and Guidelines to be prepared by June 2002 followed by workshops and train- ing to introduce Insufficiett use of Environmental Management Systems by compa- nies in OECS to identify hazard risks and develop strategies to reduice risks outputs. Inter-Country Collaboratio,t Region :: -: CDERA collaborated with the Under DIPECHO Project commu- Vulnerability audits for critical CDMP Storm hazard modeling Japanese to assess the capacity of nities in St. Lucia, Dominica, Ba- facilities focused on schools under assesses the risk to coastal areas countries to do hazard mapping and hamas and Barbados taught skills to CDMP. from tropical stonm surge and vulnerability assessments. Cari- prepare for hazards. Methodology Sectoral vulnerability assessments associated high winds. TAOS com-Japanese Cooperative Agree- and training materials made avail- conducted under CDMP for Carib- model installed at the ClIMH and ment will strengthen these capaci- able to other countries. bean Electrical Utilities; for schools staff trained to apply model to ties, including GIS component. World Bank US $37 million pro- and shelters in the Eastemn Carib- member countries. Applied at Focus on flood hazard in 3 pilot ject: part of funds used to enhance bean; vulnerability audit for hy- Parham Harbour in Antigua Regional Institutions countries - Barbados, St. Vincent community disaster planning. droelectric power facilities in Do- (1995); west coast of Dominica; and Trinidad. USAID Disaster Management minica, electrical power facilities in Montego Bay (1997), Kingston. OAS/CDMP45 documented hazard Training Programme provided St. Lucia and transmission and Regional atlases also developed. mapping availability in the region training for Instructors in damage distribution facilities in St. Vincent. as on output of the 1999 CDMP assessment and needs analysis. Structural vulnerability assessments Hazard Mapping and Vulnerability Focus on communities at risk. carried out for selected govemment Assessment Workshop which also . aclitisi niu/abd n provided an overview of assessmnent Community level vulnerability Statiesi iulabd n technquesused in region, assessmentsdone in Dominican St. Kitts/Nevis under Post-Georges techniques P~~'r,,,hi,. ~ Hq, i - ,,d -. rUiNAD Disaster M itigation project._ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 45 Caribbean Disaster Mitigation Project, www.oas.orgjcdmp PaRe 141 OECS and CARICOM Table 1: Risk Identification - Actual Practices Note: Actual practices are described in plain type and gaps or limitations are listed in italics. '' . S Hazard Assessment and V'ulnerabiliti Assessnient ;. ;JNiap g wcio-economic . Physical. Environmental A~ pan of the CDNIP, ;ub.regional Republi and Haiii undler CDNIP Di'asier kliiigauon projei seismic hazard maps prepared for the Leeward Islands, Windward Islands and Jamaica by UWI Seis- mic Research Unit, assessments of landslide and earthquake hazards conducted in Jamaica and river flooding in Belize. Storm surge atlas prepared for the Eastem Caribbean by CIMH under the CDMP. PGDM produced hazard maps and vulnerability assessments for Anti- gua/Barbuda and St. Kitts/Nevis. Communities trained to identify hazards under USAID community preparedness programme. CDMP provided for physical plan- ners and disaster coordinators to review hazard maps and on use of maps for vulnerability assessments and incorporation into development planning and control and environ- mental management. CDB to use Disaster Mitigation Facility for the Caribbean (DMFC) Multilateral Lending Institutions, to further hazard mapping and Bilateral Donors integrate into the development planning process OECS and CARICOM Table 2: Risk Reduction - Actual Practices Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ~~~~~~~~~~h,ia N1e"sifresa~X _ial Soi2cnri Environmenlal -UWI g: !.,5 cura.yw K:.. tn-s N,tr, cturale';<; b t res ~Neasur s -Post-disaster Nleasures ~~~ ~ ~ ~ ~ ~ :-~~~~~~~~~~~*-~~~~~~S -tu- -i NIau~ Nleasures Subregional OECS Secretanat prepared model GTZ di.a;iei project include- St. Georgcs Declaratiuon kOECS building code which is being custom- development of community Environmental Charter) not bind- ized by some member countries. emergency plans in rural ing on govemments. It is pre- OECS Secretariat offers technical communities in Nevis (pilot), scriptive and is to be reviewed guidance to govemments, sources St. Kitts, St. Lucia and Do- after 3 years to detenmine if technical expertise for ELAs and acts minica. Draft Plans for St. should become a binding Treaty. as a reviewer for terms of reference Kitts, Dominica and St. Lucia OECS/NRMU prepared National for ElAs. under final review Environmental Management Need to ensure that all countries NRMU Watershed Project in Strategy for Anguilla and sched- have resources to customnize building St. Lucia, St. Vincent and St. uled to prepare for Dominica (on- codes or develop national codes. Kitts introduces community going), St. Vincent and Montser- based technologies such as rat. Legislative and Institutional Lack of technical andf nancial re- river bank stabilization and capacity reviews in St. Lucia and sourcesfor monitoring of develop- addresses erosion, environ- St. Kitts will likely result in ment and enforcement of codes mental degradation, water preparation of EMS. Needfor institutional strengthening quality and appropriate water- EMAs not well institutionalized. of physical planning departnments shed uses. Project also in- Neededfor public as well as and national disaster offices in some cludes training in application private sector projects. Need countries. of bio-engineering techniques comnitmnent at political level to Absence of a well-defined mechanism and use of indigenous food act on and iniplemnentfinidings of and procedurefor integrating exist- crops. EIA. Need for legislation to OECS Franuework ing hazard infonnation into the land- NRMU's Environmental Ca- support EIA in all countries. use planning process. pacity Development Project Lack of technlical andfinancial also includes development of resources and equipment inz agen- curriculum materials for ciesfor monitoring and enforce- teaching at community and ment of actions requested follow- vocational colleges in the ing EM. region. Post Disaster Rapid igEA Environmental Assessment Institutional and legislative project will also develop cur- franmeworksfor addressing wider riculum materials and teaching environmnental issues is inade- aids. quate. OECS Education Reform Inadequate solid waste manage- Project includes Technical and mnent andfailure to establish Vocational Education and clear link between improper Training with links to the garbage disposal andflooding or education system. damagefromn items which become missiles during hurricane winds Need to develop link between and environmnental health issues. the inisuranice industry anzd environmental hazards. Insufficient attenition in OECS to Environmental Management Systems (EMS) by companies to _ mtioniitor- rgeir environmentale4 Poige 143 OECS and CARICOM Table 2: Risk Reduction - Actual Practices Note: Actual practices are described in plain type and gaps or limitations are listed in italics. p i q , , 0 , .Physical m1easurms - . v -Socio-econon c En%ironmental Post-disaster Nleasures Structural Non-Structural Mleasures Nleasures performance. Need to review legislative and inistitutiontal capacities re Na- tional Environmental Maniage- inent Strategies. Inter-Country Collaboration Regional Hurricane Resistant Home Im- Regional Building Code to be up- DIPECHO project developed Focus of initiatives on policy and CDERA documented best prac- provement Programme: Toolkit dated in 'CUBIC 2000.' public education materials and education rather than capital tices in the recovery efforts in prepared under CDMP to address Assistance provided to Dominica, worked with schools to infuse works. Antigua and St. Kitts after Huri- the informal sector. Antigua/Barbuda, Grenada and Be- into curricula. cane Lenny. Regional initiatives focus on policy lize to develop national building Working with CXC to intro- CDERA prepared Post Impact measures rather than structurall codes under CDMP, in collaboration duce disaster management into Situation Reports for various construction initiatives. with UNCHS. syllabus. tropical storms, hurricanes, CDERA conducted series of work- Discussions with UWI in 1999 droughts and volcanic eruptions shops in Grenada and St. Lucia to to inventory training initia- affecting the region since 1997. integrate disaster management into tives at the regional level and CDMP documented case study of the planning process. Comprehen- coordinate them. the effects of Hunicane Luis on sive Disaster Management Strategy 1996 CDERA project with the Antigua Public Utility Au- also seeks to do same with focus on UWI Faculty of Law to de- thority. institutional strengthening; incorpo- velop Model Disaster Legisla- rating disaster management into tion. Sought endorsement via projects; public education and train- series of national consulta- Regional Institutions ing; contingency and hazard specific tions. Now enacted in Belize plans and operational procedures and and Montserrat and in ad- conducting research to inform public vanced stage in other coun- education. Strategy endorsed by tries. OECS and CARICOM. Planned national consultations to get member DIPECHPO Project hosted countries to adopt. regional workshop in St. Lucia coundner to adopt. in 1999 on vulnerability re- Under PGDM, status of building duction for school facilities to codes in a number of countries include issues of school documented. safety, construction and haz- Flood Alert and Warning Systems ard resistance. Developed provided in vulnerable communities mitigation policy guidelines. in Jamaica, Trinidad, Dominican DIPECHO Project producing Republic and Haiti under USAID videos on disaster prepared- community preparedness pro- ness for 7 to 11 year olds and gramme. interactive class materials for Public Facility Inspectors Workshop secondary school students to held in Trinidad in 1999 provided strengthen geography and I Page 144 OECS and CARICOM Table 2: Risk Reduction - Actual Practices Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ..~ '--S.-- ;N Ev7>Tfflhysic'a AeasuWs. X i .;,<^ Socio-economic . ......................................................... Environmental Post-disaster Nleasures ~~~~,truct ~ ~ ~ ~ ~ ~ ~ tN1easuresNisre .>,f'- .lz <-;.Eg~~~~~~~~1 btsN,ra2fl . 4 n->Sirutural"CV-1 N eeasures tiaining lo invpec public f:ilines social science s)Ilabds for compliance with safety standards. Post event diagnostic surveys Development of comprehensive of infrastructure projects hazard mitigation policies and plans resulted in preparation of underway or complete in Jamaica, St. guidelines on mitigation crite- Lucia, Barbados, BVI and USVI. ria for infrastructure design. Natural Hazard Mitigation Policy and Plan prepared for Antigua and St. Kitts (PGDM). Need to develop model mitigation policies and guidelines. Lack of enforcement mechanisms to implement building codes. Needfor on-going research to de- velop appropriate mitigation tools. Absence of a well defined mechanism and procedurefor integrating exist- ing hazard information into the land- use planning process. CDB funding rehabilitation of 9 CDB provides assistance for institu- CDB assisting countries to CDB strengthening its own ca- schools in St. Kitts and retrofitting tional strengthening of National develop Disaster Mitigation pacity for mitigation and encour- of shelters in Nevis. Disaster Offices and CDERA. Plans and policies and build- aging borrowing member coun- World Bank Eastem Caribbean CDB assists in promoting better ing awareness at the commu- tries to integrate disaster mitiga- Emergency Management Loans building practices. nity level. tion measures into all develop- funding structural works in partici- CDB will provide assistance to CDB provides assistance to ment projects. Also training the pating countries, as identified in lOan BMCs to develop country Building tetayisiuin nte Bank's staff in disaster manage- Multilateral Lending Institutions, passessments. Codes or ensure that existing ones region to facilitate integration ment and designing a strategy for Multilateral Lending Institutions, ~~are taken through the legislative of disaster management into integrating it into the project Bilateral Donors process. their curricula. cycle. World Bank Eastem Caribbean CDB including mitigation CDB developing guidelines for Emergency Management Loans criteria in infrastructure design preparing Natural Hazard Impact supporting institutional strengthening to ensure long tert viability Assessments (NHIA) which will measres n prticpatng cuntres. of lan rojets.be funded by the Bank's DMFC measures in participating countries, ofloanprojects. PJand will eventually become part of the project evaluation process. Loan requests for projects will be required to include NHIA. Page 145 OECS and CARICOM Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. *-,1,,I, * ^ A- ; ''' ; ~ ' ' |' '- ' Budget Self | M1arket Inurance Public Asset R isk Pooling and _j 43tsi;td r; K. S 4 r ^ .| § ' .' Insurance | and Reinsurance . Coverage | Diversification | Risk Financing Subregional Tllt re ii iit, commoiln nimur.ance legislation inforce in the sub- region. NB: The insurance legislations in force were enacted between 1967 and 1977. Only St Lucia and Grenada have a modified Carib- bean Law Institute (CLI) version OECS Framework and the Trinidad and Tobago version, respectively. The respective legislations do not promote risk retention and self- sufficiency to prevent over lever- aging of reinsurance and price volatility. The provisionsfor reserving are purelyfor the pur- pose of capitalization. There is no deliberate policy There is no insurance arrange- There is no insurance arrange- The practice of using contingency move to consolidate insurance mentfor public asset coverage. mnentfor public asset coverage. credit as supplementary instru- operations across countries. The World Bank/CDB OECS and The World Bank/CDB OECS and nient to niarket reinsurance to NB: Consolidation of the life Barbados Catastrophe Risk Man- Barbados Catastrophe Risk Man- reduce price volatility is not insurance industry was urely agement and Insurance Reform agemernt and Insurance Reforn established in the OECS coun- driven by acquisitions. Project will provide thatfacility. Project will provide thatfacility. tres. The property insurance industry NB: The securities market is is very inefficient. There are more embryonic andfiscal difficulties than 60 insurance entities operat- place lim,it on such initiatives. Inter-Country Collaboration ing in a market with 500,000 Governments and the private Inter-Country Collaboration persons. sector should: Minimum standards of operations (i) use capital market instruments as set out by a new OECS harno- to getierate equity capitalfor the nized insurance legislation should recovery effort anzd drive the consolidation process. (ii) establish a venture capital funtd to suipplemnent recoveries This is critical as many property from butsiness interruption insur- insurance companies are under- ance. capitalized and cannot purchase reinsurance coverage because of ponfolio size. 46 Colonial Life Insurance Company (CLICO) acquired Capital Life and British American Insurance. OECS and CARICOM Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ..; !R ''-'L- .^ i'i>.;> t'l'Bud Jet'gel"' ,.' M1arket Insurance -n1- [ . Public Asset [ Risk Pooling and 9' '; wD - < l,, m t .nSce -£; | -'and Reinsura nce[' .< Coverage [ Diversification r Risk Financing R~~~~~~~~~~~~~~~~~~~~~~~~~' ;o -ve:-:: - R'egiona'l Funding from CDB has been Caribbean Association of Insur- The recommendation to establish Govenmments would be expected utilized mainly for the financing ance Regulators (CAIR) was a regional catastrophe pool came to encourage tax incentives when of economic infrastructure such established to develop harmo- out of the Report of the CARl- the Catastrophe Pool is estab- as roads, seaports and utilities; as nized risk classification for the COM Working Party on Insur- lished under the World well as post-disaster financing. region, butfinancial difficulties ance. Bank/CDB OECS and Barbados have rendered tihe body very Regional bodies such as CHA, Catastrophe Risk Management ineffective. It pays more attention CARILEC, IAC and CDERA, and Insurance Reform Project. to regulatory issues. have promoted the idea of risk This would be expected to be the The Insurance Association of the pooling but the matter has not casefor a regional pool Caribbean (IAC) promotes har- influence public and private pol- monization of insurance legisla- icy. tion in collaboration with the CLI CARICOM's efforts in the setting and CAIR but except in some up of a regional catastrophe Pool jurisdictions (Trinidad, Barbados have been, limited through insu- and Jamaica), the impact on laritv and the absence offiriancial government and private sector resources to complete the techni- policy is limited cal work. No work had been done In some jurisdictions, rating sine 1999.47 Regional Institutions agencies evaluate thefiscal An OECS Catastrophe pool health of insurance comnpanies would hardly be sustainable. but this is not a normal practice in the OECS. Any senblance of a sustainable pool would hove to include the The regional bodyfor Insurance en,tire Caribbean region. regulators in the Spanish- speaking countries of the region is ASSAL (Associaci6n de Super- intendentes de Seguros de Amer- ica Latina.) CAIR should be capitalized to build capacity to deal with issues of risk classification IAC should be given a more prominent role in CARICOM to influence policy naking process Rating agencies to be encouraged in the insurance industry. 47 Interview with Allister Campbell, Director General, Insurance Association of the Caribbean (IAC) and Evelyn Wayne, Deputy Programme Manager, Macrocconomics and Trade Policy Coordinator. Trinidad and Tobago and Jamaica opted out of the discussions and the World Bank efforts have since been concentrated on Barbados and the OECS countries. Pav'e 147 OECS and CARICOM Table 3: Risk Transfer - Actual Practices and Gaps Note: Actual practices are described in plain type and gaps or limitations are listed in italics. ' . t 'P'. .tuF" ! ~ ,Budget Self MIarket Insurance Public Asset Risk Pooling and . ,:,, nsurance -. Reinsurance Coverage Diy:ersification Risk Financing The X orld Bank xc prouiding flit lIi.rlJ Ilvr t,Cnl)B OECS alId loan financing for insurance Barbados Catastrophe Risk Man- capacity building. CFrC has agement and Insuranice Reform provided funds for legislative Project will serve as pilot project Multilateral Lending Institutions, reform. for risk poolin7g. Bilateral Donors The IDB and World Bank are working with the Dominican Republic towards uniform princi- ples in the region. References Interviews for risk transfer practices were done with the following persons: (I) Allister Campbell, Director General, insurance Association of the Caribbean (IAC), [AC Building, Collymore Rock, St Michael, Barbados (2) Evelyn Wayne, Deputy Programme Manager, Macroeconomics and Trade Policy Coordinator, Bank of Guyana Building, Georgetown, Guyana. (3) Jeremy Collymore, Coordinator, Caribbean Disaster and Emergency Agency (CDERA), The Garrison, St Michael, Barbados