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In the Asia-Oceania region with its vulnerable infrastructure, people continue to suffer from natural disasters such as earthquakes, cyclones or floods. In order to construct resilient society, the risk control for prevention-reduction of disasters and the risk finance for restoration and revival is indispensable. This article shows the necessity of building reinsurance functions which enables the underwriting of natural disasters in this area and arrangements of its requirements and conditions. The improvement of infrastructure for natural disaster and the alleviating of poverty are the premises of these issues and have close relations with developing financial markets and diversifying financial-insurance measures. This article shines light on the integrated framework of these factors and the methodology. Ensuring resilience against natural disaster must be shared objectives among the countries in this region with low insurance diffusion and multifarious backgrounds of economy, society and culture. The regional partnership and the support of the global community should play an important role for ensuring resilience. Building the reinsurance function of natural disasters in this region follows the same path with the realization of “Principles for Sustainable Insurance”.

Effective Structure of Reinsurance Function for Disaster Risk in the Asia-Oceania Region