Once community officials, staff, or residents are interested in further considering community-based catastrophe insurance (CBCI), there is an iterative five-part process that can guide them as they consider possible implementation. These are not necessarily sequential steps – it may be necessary to go back and forth among them multiple times. Before arriving at the decision to pursue these steps, the community may need a local champion or leader who believes CBCI could secure local benefits.
The five-part process comprises: defining the need, determining authority to act, engaging stakeholders, analyzing risk and transferring risk.
In the new report from Guy Carpenter, Marsh & McLennan Advantage, and the Wharton Risk Management and Decision Processes Center, Community-Based Catastrophe Insurance: A Model for Closing the Disaster Protection Gap, the questions to consider and options around each of the five steps are outlined.
