Topic-Disaster and disaster management.
7) There is a need to move from reactive stance to proactively prepare for natural disasters. Comment in the light of the need for insurance against natural disasters.(250 words)
Why this question
Natural disasters have become more intense and more frequent and growth of population has led to increase in the potential damage caused by any natural disaster. Rebuilding and reconstruction after a natural disaster can be very expensive and thus there is a need to insure against them.
Comment- here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Key demand of the question.
The question wants us to express our opinion as to why there is a need to proactively prepare against natural disasters in terms of the need for insurance to rebuild the society which has suffered any natural disaster.
Structure of the answer
Introduction- write a few introductory lines about the Increased intensity and frequency of natural disasters.e.g In 2017, Swiss Re counted 183 natural catastrophes and 118 man-made disasters across the globe etc.
- Discuss the need for huge amounts of money that is needed to rebuild the society after a natural disaster. E.g We react every time there is a disaster. We band together and raise funds, help victims and volunteer time to clean up and rebuild; The cost of recovery and reconstruction in India mainly comes from disaster relief fund and allocation from state and the central govt. but there is a huge PROTECTION GAP; similarly a state levy will not sufficiently incentivize states to improve their disaster risk management etc.
- Discuss the need for insurance in this regard. E.g One solution is to transfer disaster risks over to the insurers or reinsurers. Immediate payouts are made through parametric solutions based on the amount of rainfall or the intensity of a drought, for example; The benefit to governments would be transparency over funding; the benefit to citizens is almost immediate payouts; the benefit to everyone affected would be food, clothes, medicines and temporary shelter without having to appeal for funds; Ratings agencies are increasingly looking at the impact of natural disasters on the financial health of a government. Both S&P and Moody’s said that mitigating the financial impact of natural disasters will improve the credit rating of a government etc.
Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.