Insurance Industry’s First Disaster Risk Reduction Service for Local Governments

To prevent losses for citizens due to natural disasters, local governments need to take timely actions, such as issuing evacuation advisories. Meanwhile, costs may arise (such as costs to open shelters) even if a disaster does not occur at the magnitude that was anticipated, so local governments face challenges in deciding when to issue evacuation advisories or other guidance if they aim to minimize losses for the community. In this context, we have developed services to support local governments in creating rapid response systems, by providing insurance to compensate them for costs associated with the issuance of evacuation advisories and other guidance, and by providing weather and response information.