Future disasters to cost Vietnam $6.7b

November 18 2016 by InsuranceAsia News Staff

Natural disasters like typhoons, floods and earthquakes are expected to cause more than VND141.2 trillion (US$6.7 billion) in economic losses in Vietnam in the next 50 years, according to the World Bank.

About 60% of Vietnam’s total land area and 71% of the population are at risk of typhoons, tornadoes and floods, the World Bank said at a conference on Vietnam’s disaster risk finance.

The average economic loss from floods and typhoons was estimated at about 0.8% of the country’s gross domestic product (GDP).

Sebastian Eckardt, lead economist for the World Bank in Vietnam, said that the World Bank, together with the government of Switzerland, supported the country in boosting disaster risk finance and insurance solutions through the building of its catastrophe risk model.

With the model in place, the government and other organisations would be able to evaluate potential losses and prepare a better financial response to the impact of disasters before they occurred, Eckardt said.

It’s important, he added, that measures are introduced to protect the state budget from natural disasters and develop insurance markets over domestic catastrophe risk.

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