The Cook Islands

This country note is produced is part of The Pacific Catastrophe Risk Assessment andFinancing Initiative (PCRAFI). The geographic spread of the Cook Islands poses logistical problems for any necessary post-disaster relief and response efforts. The events of 2005 demonstrated that the Cook Islands is extremely vulnerable to the threat of tropical cyclones (TCs): in the two months of February and March 2005, TCs Meena, Nancy, Olaf, Percy, and Rae swept the country. The Cook Islands is expected to incur, on average, about NZ$6 million (US$4.9 million) per year in losses due to tropical cyclones. In the next 50 years, the Cook Islands has a 50 percent chance of experiencing a per-event loss exceeding NZ$97 million (US$79.5 million. The Cook Islands has a proactive approach to disaster risk financing and insurance (DRFI), which is supported by the upper echelons of government. In January 2011, the prime minister in his role as chair of the National Disaster Risk Management Council requested that the Ministry of Finance and Economic Management look at ways to become self-reliant in initial disaster response and generate new income streams for investment in a fund specifically for disaster management response and recovery. The Cook Islands has available a maximum amount of NZ$5.6 million (US$4.6 million) in the form of contingency funds and catastrophe risk insurance to facilitate disaster response. A number of options for further improving the Cook Islands financial protection against disasters are presented for consideration: (a) the development of an integrated DRFI strategy; (b) investigation of using contingent credit to access additional liquidity post-disaster; (c) development of an operations manual for post-disaster budget mobilization and execution; and (d) the identification of assets to be included in an insurance program for critical public assets.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2015-02
Subjects:	ACCOUNTING, ALLOCATION, APPLICATIONS, ATTACHMENT POINT, BONDS, BORROWING CAPACITY, BROKERS, BUILDING CODE, BUSINESS INTERRUPTION INSURANCE, CAPITAL COSTS, CAPITAL MARKETS, CAPTIVE INSURANCE, CASH RESERVES, CASUALTIES, CATASTROPHE BONDS, CATASTROPHE REINSURANCE, CATASTROPHIC EVENTS, CLIMATE, CLIMATE CHANGE, COMPETITIVENESS, CONTINGENCY PLANNING, CONVENTIONAL INSURANCE, COUNTRY RISK, COVERAGE, CREDIT ARRANGEMENTS, CREDIT LINES, CURRENCY, CYCLONE EVENTS, DAMAGE ASSESSMENT, DEBT, DEBT OUTSTANDING, DEBT REPAYMENT, DEBT SERVICE, DEBT SERVICING, DEPOSIT, DERIVATIVES, DEVASTATION, DEVELOPMENT BANK, DISASTER, DISASTER EMERGENCY, DISASTER EMERGENCY RESPONSE, DISASTER FINANCING, DISASTER INSURANCE, DISASTER MANAGEMENT, DISASTER PREPAREDNESS, DISASTER RECONSTRUCTION, DISASTER REDUCTION, DISASTER RELIEF, DISASTER RESPONSE, DISASTER RISK, DISASTER RISK FINANCING, DISASTER RISK REDUCTION, DISASTER RISKS, DISBURSEMENT, DISBURSEMENTS, DOMESTIC CREDIT, DOMESTIC SOURCES, EARTHQUAKE, EARTHQUAKE INSURANCE, EARTHQUAKES, ECONOMIC IMPACT, EMERGENCY ASSISTANCE, EMERGENCY MANAGEMENT, EMERGENCY RESPONSE, EQUIPMENT, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXTERNAL CREDIT, EXTREME EVENTS, FINANCIAL INSTRUMENTS, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL RESILIENCE, FINANCIAL RISK, FINANCIAL RISK-SHARING MECHANISMS, FINANCIAL SECTOR, FINANCIAL SUPPORT, FINANCING REQUIREMENTS, FIRE, FLOODS, FOREIGN AFFAIRS, FORMS OF CREDIT, FUNGIBLE, GENERAL INSURANCE, GOVERNMENT BONDS, GOVERNMENT BORROWING, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT FINANCE, GOVERNMENT INSURANCE, GOVERNMENT REVENUE, GRANT FUNDING, GROSS DOMESTIC PRODUCT, HOLDING, INCOME, INCOME STREAM, INCOME STREAMS, INDEBTED COUNTRIES, INDEMNITY, INDEMNITY INSURANCE, INSPECTIONS, INSTRUMENT, INSURABLE RISKS, INSURANCE, INSURANCE AGENTS, INSURANCE BROKER, INSURANCE BROKERS, INSURANCE COMPANIES, INSURANCE COMPANY, INSURANCE CONTRACTS, INSURANCE COVERAGE, INSURANCE INDUSTRY, INSURANCE LAW, INSURANCE MARKET, INSURANCE MARKETS, INSURANCE PENETRATION, INSURANCE PILOT, INSURANCE POLICY, INSURANCE PREMIUM, INSURANCE PRODUCTS, INSURANCE RATES, INSURANCE REGULATION, INSURANCE REGULATIONS, INSURANCE SCHEME, INSURANCE SUPERVISORS, INSURED LOSSES, INSURER, INSURERS, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL INSURANCE, INTERNATIONAL RELIEF, INTERNATIONAL STRATEGY FOR DISASTER REDUCTION, INVENTORY, INVESTMENT CORPORATION, ISSUANCE, LACK OF COMPETITION, LIFE INSURANCE PREMIUM, LIFE INSURERS, LIQUIDITY, LOAN, LOAN REPAYMENT, MACROECONOMIC STABILIZATION, MONETARY FUND, NATIONAL EMERGENCY, NATIONAL INVESTMENT, NATURAL CATASTROPHE, NATURAL CATASTROPHES, NATURAL DISASTER, NATURAL DISASTERS, NATURAL HAZARDS, NEGOTIATION, NON-LIFE INSURANCE, OFFSHORE MARKETS, OPPORTUNITY COST, PHYSICAL ASSETS, PHYSICAL DAMAGE, PORTFOLIO, PORTFOLIO MANAGEMENT, PREMIUMS, PRIVATE CATASTROPHE INSURANCE, PROGRAMS, PROPERTY INSURANCE, PRUDENTIAL REGULATION, PRUDENTIAL SUPERVISION, PUBLIC ASSETS, PUBLIC FINANCES, PUBLIC FUNDS, PUBLIC SPENDING, RECURRENT EXPENDITURE, REGULATORY FRAMEWORK, REINSURANCE, REINSURANCE CAPACITY, REINSURANCE CONTRACT, REINSURANCE CONTRACTS, REINSURANCE PREMIUMS, REINSURERS, RELIEF WORK, RESERVE, RESERVE BANK, RESERVE FUND, RESERVES, RETURN, RETURNS, RISK ASSESSMENT, RISK FACTORS, RISK INSURANCE, RISK MANAGEMENT, RISK POOLING, RISK PREMIUMS, RISK PROFILE, RISK TRANSFER, SAVINGS, SETTLEMENT, SMALL BUSINESSES, SOLVENCY, SOLVENCY REQUIREMENTS, SOVEREIGN RISK, STOCK EXCHANGES, STORM, STORM SURGE, SWAP, SWAPS, TAX, TAX CREDITS, TAX INCENTIVES, TERRITORIAL WATERS, TOTAL COST, TROPICAL CYCLONE, TROPICAL CYCLONES, TROPICAL STORMS, TRUST FUND, TRUSTEE, TRUSTEES, TSUNAMI, TYPHOON, UNDERINSURANCE, UNDERWRITING, VALUATION, VALUATION DATE, VALUATIONS, WIND SPEED, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/2015/02/24157490/cook-islands-country-note-disaster-risk-financing-insurance-cook-islands-disaster-risk-financing-insurance https://hdl.handle.net/10986/21697
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