Insurance, Alternative Financing Post-Disaster

Along with the impact of disasters on the country's economy is big enough, where 20 percent of the state budget can be used to finance post-disaster reconstruction, then the insurance can be an alternative financing is also saving the state budget for the costs of mitigation and reconstruction.

Related to disaster insurance, the World Bank also include this as one form of effective prevention needs to be done by the government. "Insurance is very useful to help the fiscal risks,"said Senior Economist Global Facility for Disaster Reduction and Recovery, Apurva Sanghi, who also are looking forward to developing countries soon have this insurance.

According to him, many countries have had this disaster insurance, the recent of the countries in the Caribbean. "Many countries in the Caribbean come together, they are small countries, then they buy commercial insurance, and negotiate to get a cheap price,"said Apurva.

Caribbean countries have indeed been Caribbean Catastrophe Risk Insurance Facility, ie facilities that bring together disaster risk in one area, helping the country in a state affected by disaster to buy insurance is cheaper than without the help of this facility.

Insurance of this kind is being reviewed by the Ministry of Finance, and a number of related institutions, such as the National Disaster Management Agency, which is expected to assist communities in disaster prone areas.