The scale of that tragedy had been a shock, but it took the 2004 tsunami for the National Disaster and Management Authority (NDMA) to be set up. Countries the world over, even prosperous ones such as the US, are struggling to design effective insurance programmes for the disaster struck. Rather than waiting for a model to emerge in the West, the government should try to devise its own national disaster insurance policy. Insurance coverage will give insurers an incentive to push for better information systems, risk analysis and precautionary mechanisms. The difference is that governments usually don’t have enough money, while insurers are risk specialists and are financially geared for it.

Source: Mint May 05, 2019 19:30 UTC