Public-Private Partnership in the Management of Natural Disasters: A Review

TL;DR

This review examines the role of public-private partnerships, especially with the insurance sector, in managing natural disaster risks, highlighting successes, challenges, and the need for inclusive, sustainable strategies.

Contribution

It provides a comprehensive analysis of public-private partnerships in natural disaster risk management, emphasizing the importance of community involvement and sustainable development.

Findings

Public-private partnerships can be effective but often face financial and governance challenges.

Poor risk knowledge and weak governance hinder the success of these initiatives.

Climate change and unsustainable development threaten future risk management efforts.

Abstract

Natural hazards can considerably impact the overall society of a country. As some degree of public sector involvement is always necessary to deal with the consequences of natural disasters, central governments have increasingly invested in proactive risk management planning. In order to empower and involve the whole society, some countries have established public-private partnerships, mainly with the insurance industry, with satisfactorily outcomes. Although they have proven necessary and most often effective, the public-private initiatives have often incurred high debts or have failed to achieved the desired risk reduction objectives. We review the role of these partnerships in the management of natural risks, with particular attention to the insurance sector. Among other country-specific issues, poor risk knowledge and weak governance have widely challenged the initiatives during the recent years, while the future is threatened by the uncertainty of climate change and unsustainable development. In order to strengthen the country's resilience, a greater involvement of all segments of the community, especially the weakest layers, is needed and the management of natural risks should be included in a sustainable development plan.