The insurance penetration level in Pakistan is one amongst the lowest in the world, standing at 0.9% of the GDP in 2018. The Fund is to develop two DRF solutions in the first phase, which is to continue until 2020. At least one of these solutions is to be piloted in this context.
The prospective solutions are to be identified and developed for the following layers of risks. The SG will steer the overall direction of the instrument development, reflecting the actual needs of the country to the best possible extent.
Range of potential financial instruments available or to be considered for developing a continuum of disaster risk financing includes but not limited to:
NDRMF is a government-owned not-for-profit institution registered with the Securities & Exchange Commission of Pakistan under Section 42