, 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 us $ 160 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. many countries have had to reallocate budgets, issue debt, or rely on foreign aid to finance immediate relief and reconstruction efforts. most have yet to develop robust public disaster risk financing strategies using ex - ante risk financing solutions, which includes setting aside reserves, establishing contingent credit, and tapping on insurance and capital markets. 8. several asean countries, however, have made significant strides in the right direction. for instance, philippines has put in place a disaster risk management strategy since 2010, and implemented a parametric insurance programme covering 25 provinces, which will provide rapid liquidity for the government to enable rebuilding and recovery efforts when disaster strikes. it is now working with the world bank on a sovereign catastrophe bond to complement the insurance programme, which will provide cover for more extreme events. over the years, indonesia has consistently increased its budget allocation for disaster management. most recently, indonesia has adopted a new disaster risk financing and insurance strategy, which encompasses the government insuring government buildings from this year. a coordinated approach to disaster risk financing 9. while national disaster risk management efforts are important, asean member states can achieve even more by taking collective responsibility, and adopting a coordinated approach to building a regional platform in order to : collect good quality, high resolution data, which is necessary to quantify asean ’ s economic and insurance exposure to disasters enhance capacity building, learn from each other ’ s experience and consolidate best practices, as well as equip policymakers with knowledge on enabling legal and regulatory frameworks to deploy disaster risk financing solutions ; and third, develop robust regional disaster risk financing solutions such as regional sovereign risk pools and catastrophe bond programmes. 10. over the past decade, asean has made notable progress to institutionalise disaster risk management across the region. specifically, it has put

- ante risk financing and risk transfer strategies. adrfi phase 2 was approved by the asean finance ministers at the asean finance ministers meeting in april 2018 and the 3 - year detailed plan of action was subsequently endorsed in april this year. 12. to drive adrfi phase 2 forward, the plan of action will be implemented by a dual programme office, to be led by the asean secretariat and the ntu - icrm. the dual programme office will adopt an open architecture structure to support global collaboration with stakeholders including policy makers, governments, multilateral development banks, international organisations and the private sector. 13. allow me to provide an overview of adrfi ’ s 3 focus areas over the next 3 years. these are : ( i ) risk assessment, as i mentioned earlier ( ii ) risk advisory ; and ( iii ) capacity building. leveraging on their respective strengths, icrm will lead the risk assessment and risk advisory pillars, while asean secretariat will lead the capacity building pillar. 14. these are upstream activities which will strengthen asean ’ s disaster risk management capabilities, and complement the downstream public and private disaster risk financing solutions, such as the seadrif. let me elaborate further on the 3 key focus areas. 1 5. first, risk assessment. good quality data is necessary to quantity asean ’ s economic and insurance exposure to natural disasters. moreover, countries are facing increasingly complex threats that compound the negative impacts of disaster and climate shocks, ranging from supply chain disruptions, to population migration and adaptation issues, to the risk of pandemics. good data and analytical tools will allow policy makers to identify disaster risk zones, and to quantify the risks as well as the potential fiscal impact. this will in turn, empower governments, regulators and industry to make more informed decisions on disaster risk management, from infrastructure planning, to the use of disaster financing strategies and the development of solutions. 16. to this end, adrfi will establish a new asean data and analytics platform, to construct a high resolution and objective natural catastrophe database for asean. this platform will use remote sensing technologies such as satellite imagery, and advanced extraction techniques, to produce top down economic exposure data. such data include building attributes like age and type of construction, as well as building values, will be fused with bottom - up insurance exposure and loss data, to form a holistic and more accurate picture of risk. 17. you may already be familiar with the natural catastrophe data analytics platform ( or 3 / 4