Under ACSCC, the ASEAN Disaster Risk Financing and Insurance (or ADRFI) programme was established as the central platform to coordinate ASEAN-wide efforts in developing and implementing disaster risk financing strategies over 3 phases. Phase 1 was completed in 2017, which developed a historical loss database of 5 ASEAN countries for earthquake and typhoon events3 , initial country studies for Phillippines and Thailand to review their national policy and legislative frameworks, and two workshops on disaster risk financing. Second, Disaster Risk Financing. The ASEAN+3 countries have recently come together to establish the Southeast Asia Disaster Risk Insurance Facility, known as SEADRIF, in 2/4  BIS central bankers' speeches  partnership with the World Bank. As the first regional catastrophe risk facility to be established in Asia, SEADRIF will provide participating ASEAN countries with climate and disaster risk solutions. To be incorporated and licensed as a general insurer in Singapore in September 2019, SEADRIF will start with a flood risk pool to provide rapid response financing to Myanmar, Laos and potentially Cambodia. Third, Disaster Risk Response. Since 2005, the ASEAN Agreement on Disaster Management and Emergency Response (AADMER) has served as a common platform to jointly respond to disaster events in ASEAN. As part of the AADMER work programme, the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management was set up in 2011 to be the home of “One ASEAN One Response”. It has since played a key role in monitoring disasters, raising regional standards in disaster preparedness, and coordinating ASEAN’s collective response to disasters.

Climate change is further amplifying the risks of extreme weather events and sea level rises, where wildfires, droughts, heatwaves, torrential rain and coastal flooding would bring to mind grey rhinos, and not just black swans. Here in Asia, home to many densely populated megacities, such natural disasters can inflict even greater damage. 5. Already, half of the top ten countries which are most impacted by climate risk 1 in terms of fatalities and economic losses, are located in emerging Asia. A large proportion of these countries’ population and economic activities are concentrated along coastlines and low-lying areas, which make them highly exposed to extreme weather and rising sea levels. Moreover, many of these countries are also heavily dependent on agriculture, forestry and fisheries for livelihoods, and which are most vulnerable to climate change. 6. Yet, Asia remains under-prepared and under-protected against natural disasters. Currently, less than 10% of Asia Pacific’s catastrophe losses are insured, compared to 40% in developed countries. United Nations has estimated that economic losses due to catastrophe events in Asia Pacific are set to rise, and could exceed $ billion annually by 2030. Against this backdrop, countries will face a widening protection gap, if no intervention measures are taken. ASEAN and its governments must act today, and chart a sustainable course to ride out the brewing storm. 1/4  BIS central bankers' speeches  7. So far, disaster risk financing initiatives in Asia have largely been limited to raising funds on an ex-post basis, or post disaster response funding.