This paper analyses the current funding mechanism to finance disaster management in India. It looks at the drawbacks of the current system which is more focused on ex-post strategies. The paper then looks at possible ex-ante strategies that can strengthen the current mechanism, and provides relevant examples of other countries using such instruments. It also highlights the importance of a domestic insurance market, challenges of domestic insurance markets and makes suggestions on the possible features of a domestic insurance market that can be created in India.
Centre for Insurance and Risk Management