The launch of the financing facility was announced on Friday in the annual meeting of the International Monetary Fund (IMF) and the World Bank now underway here attended by senior officials of the World Bank, Germany and Britain and members of the Vulnerable 20 (V20) including Indonesia.
"Natural disasters - earthquakes, storms and floods have made 26 million people poor every year," CEO of the World Bank Kristalina Georgieva said.
"We could not stop the horrific incidents but we could help countries vulnerable to natural disaster with insurance or other risk mitigation financing instruments that the victims could recover faster," Georgieva said.
The mechanism and the disaster risk insurance are expected to help the government to be ready with fund needed to cope with the disaster, she said.
GRif will provide five-year financing facility to form a mechanism of national disaster insurance program that could facilitate the distribution of fund aid for victims of natural disasters.
German Parliament Secretary Barthle said the new facility would help the governments to access risk financing and insurance solution and mobilize rescue workers.
Based on data in the World Bank , natural disasters caused a loss of US$300 billion in 2017 , the second record high ever recorded.
The governments of countries vulnerable to natural disasters had the largest share of the losses. At the same time poorest communities not only suffer the hardest economically but carry the burden in longer term.
The Global Disaster Protection center in London will provide experts to be sent under technical assistance.
GRiF will be member and will contribute to achieving the target of the program of InsuResilience Global Partnership launched in COP23 in 2017.
Reporting by Azizah Fitriyanti
Editing by A Saragih