Risk transfer: saving the gov't the cost of calamity damage

Risk transfer can be an important mechanism to help mitigate the impact of disasters, especially in hazard prone countries such as the Philippines.

Insurance helps to shift the burden of a loss due, to disaster, to a third party and are a small price to pay in comparison to the resources they permit to save for development policies. Still, many stakeholders don't consider insurance as a priority, and politic institutions often lack resources to invest.