Natural disasters in the Caribbean: Assessing the physical and economic impacts, mitigation and insurance

Presentation

The over 40 million inhabitants of the two dozen Caribbean islands are at the front line of vulnerability to natural disasters. More specifically, more so than any other region, the Caribbean is home to relatively frequent hurricanes, earthquakes, volcanic outbreaks and landslides. Moreover, anticipated increases in temperature are expected to raise sea levels in the long term.

But natural disasters can be particularly consequential for small economies, as one finds almost exclusively in the Caribbean. For example, with 70 percent of the region's population and an equal share of its infrastructure along threatened coastlines, the consequent destruction of natural habitat and infrastructure through sea level rise and hurricanes is likely to endanger the very lifeblood of many of the Caribbean economies - tourism and agriculture - further increasing already widespread poverty. Estimates of the potential costs of future natural disasters have in fact ranged of up to $46 billion by 2100 and it has been postulated that many economies may fall into a perpetual state of recession in the face of inaction.

But what are the real risks? How have, can, and will the region respond and prepare itself in response to the threats posed by natural disasters? What options for insuring and mitigating against these risks are available in the Caribbean? The search for answers to these questions has now sparked an emergence of academic, governmental, and private bodies specifically addressing the issue of natural disasters in the region. Nevertheless, the state of knowledge is still in its infancy.

Purpose

This one day workshop intends to bring together the experts in industry, academia and government in the area to present and discuss the themes within this context. In particular, the invited speakers will focus on three believed to be most threatening types of natural disasters - sea level rise, hurricanes and earthquakes - discussing their risk, implications, and potential mitigation options at hand.

Topics

• First Session - Sea Level Rise

- What particular aspects of local economics are most threatened? What are the implications for poverty? What are the likely long term consequences? Particular focus will be on coastal communities and the implications for their livelihoods and what long term options are available.

• Second Session - Earthquakes

- As cruelly demonstrated in Haiti, earthquakes, perhaps more so than any other natural disasters, can be devastating in their immediate destruction and long term consequences. What has the case of Haiti taught us in terms of both mitigation and post-disaster policy choices? What other countries may be at risk?

• Third Session - Hurricanes

- Hurricanes pose season after season a constant threat for the Caribbean, causing damage often multifold values of local national production. Some scientists have now argued that climate change may even further increase their intensity and/or frequency. But how likely is this scenario? What costs are we likely to expect?

• Fourth Session - Insuring Against Natural Disasters and Mitigation

- What insurance and disaster mitigation options against the likely consequences of natural disasters are currently available? How successful have these been? Specific attention will be paid to what options of private and public actions currently exist and what instruments might become available in the future.