Working Paper Series: Special Edition of 2016 to 2018 Interns

iv. It is imperative that the member states of the ECCU implement a resilience fund reserve prior to the occurrence of a hazard. Member governments can adopt a regional approach to the fund by contributing an agreed proportion of GDP or current revenues to the arrangement. Such an arrangement may have to be passed in parliament and form part of the annual budgeting exercise of governments. Member governments faced with a fiscal deficit should position themselves to access investments, whether in the form of grants or loan, from the Green Climate Fund (GCF) 61 . The GCF assists Small Island Developing States (SIDS) to address climate change mitigation and adaptation needs. v. A collaboration between public entities and insurance companies is needed to engage the civil society in sensitization campaigns to better inform the uninsured and underinsured about their risk exposures. This partnership could utilize the mechanisms of the disaster management agencies to provide risk mitigation strategies and financial education to the public. Conclusion Natural disasters leave in their wake, evidence on the importance of planning, adaptation, enforcement and investment decisions to reduce a country’s vulnerability. While natural events are indiscriminate, their impact is usually more devastating for poor households because they have fewer options for coping with them. Financial losses that are attributable to disasters can be reduced through risk transfer mechanisms such as insurance which is a key player in the operations of modern society and a prerequisite for economic development. However, one of the primary deterrents to insurance is the cost. While it is expected that rates would rise after a natural disaster, due to high claim payments and reinsurance costs, a concerted effort by governments, working in tandem with financial institutions and civil society, could be instrumental in curbing rate increases and possibly reducing them altogether. Prudently employing a combination of infrastructure strengthening, land use regulations, public private partnership between governments and insurance companies, as well as disaster contingency and resilience funding, may greatly reduce the cost of

61 Currently only six ECCU member states have access to the GCF namely; Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, & Saint Vincent and the Grenadines

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