Community-Based Catastrophe Insurance (CBCI) is a stunning new know-how that is dedicated to helping the communities against disasters or calamities. The goal of this whole model is for expanding insurance and, in addition, for making neighborhoods safer. At the point when the CBCI with some key components is seen this generally prompts:
What is CBCI?
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- An insurance policy for several properties purchased by an area government or community company
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- Protects several properties within a certain area
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- Having main attention on the unpredictable weather systems like rain, thunderstorms, or hurricanes
Key Features
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- Interaction across the entire community
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- It is always cheaper to go for the group version than for the individual plan
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- Is able to cover both private and public properties
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- Can have risk lowering (risk reduction) schemes
Benefits
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- Closer access to insurance for groups of people at risks
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- Speedier the pace of the recovery process after the catastrophic event
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- The chance for individuals in a group to get a better rate because of the group being as a “whole”
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- It entails collective endeavor for the purpose of resilience in the society
Challenges
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- The difficulty due to the multi-faceted structure of designing and implementing the policy
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- Tendency for imbalance in the allocation of benefits
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- Development of community support and participation as required requirements
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- Problems with legislation and regulatory issues in some prescribed areas
Implementation Process
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- Risk identification through the actual observations in the community
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- Persuasion and training of the citizenry
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- The preparation and the negotiations of the policy with the insurance company
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- Legal and security regulation compliance
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- Operational kick-off and follow-up administration
We see CBCI is a positive and forward-thinking initiative that can help fill gaps in the coverage of insurance in the prone-to-disaster areas. Thus, Live and communication among the community are what it will work. Therefore, it will surely be an ultimate source for strengthening the resilience as well as the community development via the cooperation of people and utilization of community savings. The ability to manage the risk and move the recovery pace fast is one of the ways it can be a favorable tool for the community in the middle of a catastrophe.
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