Though two decades have passed, the 2004 Indian Ocean tsunami is still fresh in my memory.
I was in Australia at the time. It was a warm summer’s day, with many people starting to watch the Boxing Day test cricket match between Australia and Pakistan in Melbourne, when the news first hit.
Like all of us, I was in a state of shock that could only be compared to 9/11, except this time the event was in my own “backyard” of Asia.
Memories of the tsunami are painful; they prompt us to reflect on the steps we have taken – and how far we must go – to build the region’s resilience to disasters of this scale in future.
We have made a lot of progress, which is commendable, to reduce risks – but there is so much more to be done. The Indian Ocean Tsunami Warning System, established in 2005, has enhanced the region’s ability to detect and respond to tsunamis earlier – giving extra assurance to communities who are at risk of these types of events.
Many governments have also introduced measures to improve evacuation readiness, and coastal defenses.
A strong earthquake on the Indonesian island of Sulawesi in 2018 damaged the sensors and networks that underpin the early warning system, leading to delays and errors. And as Japan experienced with the tsunami that struck its east coast in 2011, local communities may remain unsure about what to do even when warnings are issued.
Adding to the challenge, the rapid pace of growth and development continues to concentrate exposure in coastal areas. In Chennai, India, for example, where the 2004 tsunami inundated the entire coastline, the population has swelled by 70% since.
The island of Phuket, Thailand, also hit hard in 2004, has seen its population triple with its emergence as a major tourist destination.
And these trends must be viewed in the context of changing weather patterns, which are making the kinds of natural catastrophes that challenge coastal areas more frequent, and more costly.
Readiness lies in partnership
Governments can advance the region’s readiness by stepping up proactive risk reduction measures, such as restrictions on building in vulnerable areas, tightening construction standards and educating the public on how to respond to tsunamis.
But the reinsurance industry also has an important, and multi-faceted role to play, making collaboration crucial.
We can channel our investment capital into building more sustainable and disaster-ready infrastructure. Our solutions can reduce costs incurred by the public sector when it comes to covering losses and can rapidly deliver financing for reconstruction – but only if protection is already in place. By working closely with the governments and local communities, we can heighten awareness of risk.
In the Asia-Pacific region, initiatives such as the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) and the Pacific Catastrophe Risk Insurance Company (PCRIC) highlight the transformative potential of public-private partnerships in enhancing disaster resilience.
These collaborative frameworks combine governmental leadership with the risk management expertise of the private sector, enabling faster recovery and reducing the economic strain on vulnerable communities.
SEADRIF’s parametric insurance solutions and PCRIC’s regional risk pools have played a pivotal role in addressing the immediate financial needs following natural disasters, providing timely resources to those affected.
These partnerships go beyond financial relief, fostering long-term behavioural and structural changes that strengthen resilience at a community level. By embedding risk transfer mechanisms into national and regional strategies, they create a culture of preparedness and innovation.
This collective effort is essential in transforming how societies anticipate, respond to, and recover from disasters, ensuring that future challenges are met with greater confidence and sustainability.
We can also contribute significantly to knowledge and capacity-building by continually enhancing our risk modelling and data capabilities.
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