This project undertook a rapid assessment of how effective an existing micro disaster insurance scheme in Odisha has been in contributing to building the resilience of vulnerable communities.
It uses the recent cyclone Phailin as a ‘real life test’ to show the opportunities and limitations of risk insurance. This is in response to expressions of interest from a number of policy-makers at the national and state level, including the former head of the National Disaster Management Authority (NDMA), to learn more about how the scheme fared.
The main objective of the assessment was to highlight the importance of building up the financial resilience of vulnerable people through disaster micro insurance in Odisha.
The findings of this rapid assessment validate the need to scale up and institutionalize disaster micro-insurance into disaster risk planning and management. This new evidence helped to increase the understanding of targeted policy-makers and stakeholders on the opportunities and limitations of disaster insurance as a part of an integrated DRM strategy. Through the project many new stakeholders became aware of the potential of risk insurance, and a discussion has begun on the value of scaling up of disaster insurance.