PCRAFI Country Note Marshall Islands

The likelihood that a hazardous event will
have a significant impact on the Marshall
Islands has risen with the increasing levels
of population and assets in the urban areas
of Majuro and Ebeye. The low-lying atolls are
at risk of damage to both assets and people as a
result of storm surges and tsunamis. In December
2008, a state of emergency was declared following
weeks of high seas, which resulted from storm
surges coinciding with high tides and two tropical
depressions (Marshall Islands Government 2009;
UNOCHA 2008). These events caused damage to
roads, houses, and other infrastructure on the lowlying
atolls of Majuro and Ebeye. Similar events are
expected to become more frequent with climate
change and rising sea levels. A number of options for improving disaster risk
financing and insurance are presented here for
consideration:
(a) develop an integrated disaster risk
financing and insurance strategy;
(b) assess the domestic insurance market for
both public and private assets to establish
what products are currently offered and
to determine their level of uptake;
(c) Carry out a quantitative analysis to
determine whether contingent credit
could be an effective tool to access
additional liquidity post-disaster; and
(d) Investigate the possibility of establishing
policies for financial assistance to disaster
victims in remote communities.