Procurement Notices

This assignment aims to design a Natural Catastrophe Risk Insurance Pool (NCP) for India, which will be a comprehensive and self-sustained solution for disaster risk financing in the country. The required services will include exploring the key requirements and parameters for a NCP to provide financial protection to the affected populations and assets from natural disasters, considering such perils as earthquakes, cyclones, floods, droughts, cloudbursts, tsunamis, wildfires and landslides. Approaches for how the NCP will also reduce the fiscal burden on the government by diversifying and transferring disaster risks to the Pool while simultaneously incentivizing risk reduction will be investigated and recommended. The options and scenarios for developing state-level pools that provide financial protection against different types of disaster risks will be explored in the assignment, including considerations for the supportive role of insurance and reinsurance companies, financing for outlier events that exceed the capacity of the NCP, and other potential instruments and mechanisms that can be integrated in the future.

The scope of the work includes:

• Analysing and providing recommendations on the legal and regulatory landscape and administrative prerequisites for establishing Nat-Cat pools at both state and national levels.
• Assessing the public finance management for disaster risk management, including the National Disaster Risk Fund, State Disaster Risk Fund, trends in budgetary allocations and actual expenses, financing gaps, fund optimization and sustainability for future financing mechanisms and instruments
• Defining and designing the mechanism for a Nat-Cat Risk Insurance Pool, facilitating the consideration of other potential disaster risk finance solutions.
• Designing a framework for integrating multiple state-level pools and existing initiatives into a central disaster risk financing pool