
Episode 6: Building sovereign disaster resilience
In the latest Risk REconsidered podcast, Swiss Re Public Sector Solutions' Gerry Lemcke and Marina Oberholzer explore how innovative risk-transfer solutions can strengthen countries' financial resilience to natural disasters. Lemcke and Oberholzer trace the evolution of Public Sector Solutions back to 2011, when Swiss Re became the first reinsurer to establish a dedicated unit to work with governments on their risk-mitigation and risk-transfer needs. Now, the toolbox to address these needs is expanding: Lemcke and Oberholzer discuss insurance-linked loans, which embed disaster protection into sovereign financing. When a qualifying disaster strikes, an insurer takes over the loan payments, providing real debt relief and freeing up public funds to be used for recovery instead. While many "moving parts" must be addressed when developing risk-transfer solutions for nations with loan obligations, Lemcke says the objective is clear: "We need more effective instruments in dealing with the debt burden following a natural disaster."





