Linking Disaster Risk Financing to Social Protection in the Commonwealth of Dominica

An important priority is preparing social protection systems to scale up when shocks and disasters strike, to enable these systems to effectively support affected persons. Predictable financing is critical element of this preparedness, including having instruments in place before shocks occur (ex ante). Relying solely on ex-post finance – meaning financial instruments that provide funding after a disaster has occurred – limits the speed and predictability of responses. It is widely recognized that governments should have a range of instruments tailored to different scales of disasters (referred to as a risk layered approach) to have a comprehensive approach to risk management. By developing options to link disaster risk finance instruments to social protection systems, this will improve the speed, efficiency and predictability of responses through social protection. Amid the many priorities that governments face in times of disasters, it also facilitates the use of financial resources to directly support vulnerable persons. This report outlines the options for linking disaster risk finance instruments with social protection in Dominica, focusing on insurance as part of a broader risk layered approach. As the government already uses catastrophe insurance through the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC), particular attention is paid to insurance. There are several promising entry points for more strongly preparing social protection systems to respond. Building on analysis and lessons learned on shock-responsive measures in Dominica, this report provides recommendations to strengthen and institutionalize linkages between disaster risk finance and social protection to make systems more shock-responsive.