Portfolio Protection against Earthquake Disaster
GlobalAgRisk, in collaboration with PT. Asuransi MAIPARK Indonesia and Aon Benfield Asia Pacific, is developing index-based earthquake insurance in Indonesia to strengthen the resiliency of the financial sector that serves lower income households and small and medium enterprises. Earthquakes can have profound impacts on bank operations, depleting the bank’s capital base, reducing liquidity, and lowering profits. The product called “EQII,” or “Earthquake Index Insurance,” is designed to transfer portfolio risks of financial institutions, enabling them to expand access to financial services in vulnerable, under-served areas and to aid in local recovery through continued lending after an earthquake event.