JBA Consulting
The World Bank-GFDRR Disaster Risk Financing and Insurance Program (DRFIP) - a partnership of the World
Bank's Finance & Markets Global Practice and the Global Facility for Disaster Reduction and Recovery (GFDRR) -
has supported many countries over the past decade, pioneering innovative financial tools and strategies to manage
the financial impacts of catastrophes. Example initiatives include the Pacific Catastrophe Risk Assessment and
Financing Initiative (PCRAFI) insurance program and the South East Asia Disaster Risk Insurance Facility
(SEADRIF). The primary aim of these programs is to provide a quick injection of cash to help participating
governments deliver relief efforts as quickly as possible after a disaster.
Challenge
A technical assistance research and development (R&D) project to improve the calculation methodologies used in
parametric and index-based insurance programmes.
Research on Combining Modelling and Satellite Data for Flooding for
Parametric Insurance
Location: Global, with testing applied to Southeast Asia
Client/ Partner: World Bank - Global Facility for Disaster Reduction and Recovery (GFDRR)
Satellite-derived data can
provide direct, objective
observations of where disaster
events are in progress as well as
showing post-event damage and
calculating impacts. Over the
past decade, DRFIP has
supported many developing
countries in setting up financial
tools and strategies to manage
the financial impacts of natural
disasters. The use of satellite
imagery could help DRFIP
innovate the way that insurance
products are used, particularly in
response to extreme flood
events. However, there are
limitations to the use of satellite
imagery.
This project undertook R&D to develop methodologies that complement the use of satellite imagery with data derived
from flood model simulations and ground-based measurements.