The Jakarta Post
Indonesia should “do more than it is currently doing” to prevent losses in the event of a disaster, the World Bank says, adding that a disaster insurance policy for the country would help reduce the economic costs of a major catastrophe.
Apurva Sanghi, the bank’s senior economist on global facilities for disaster reduction and recovery, said in Jakarta on Thursday that disaster insurance was “clearly a very relevant issue for Indonesia”, because post-disaster management was a lot more costly than disaster prevention.
“There are obviously day-to-day constraints and problems, including people’s perception of ‘what if something doesn’t happen’ and people might feel that they wasted their premium. But that’s a false perception,” Sanghi told reporters at the launch of “Natural Hazards, UnNatural Disasters: the Economics of Effective Prevention” at the...