maipark asean seminar drf fys 310311

8/7/2019 MAIPARK Asean Seminar DRF FYS 310311

1/59

INSURANCE AS A TOOL OFINSURANCE AS A TOOL OF

DISASTER RISK MANAGEMENT INDISASTER RISK MANAGEMENT IN

INDONESIAINDONESIA

Frans Y. Sahusilawane

PT. Asuransi MAIPARK Indonesia31 March 2011


2/59

Why Insurance?

2

Protecting the People

Relieving the Pressure on the State Budget

Promoting disaster-resilient community

Strengthening the Basic Foundations of

Indonesias Insurance Industry


3/59

OPENING REMARKS The present is The Key to the Past, exclaimed James Hutton, the Father of the

Geological Sciences, more than 100 years ago.

Meaning that the geological processes in the past followed along the same patternof the present day processes (this is right to a certain extent)

Great catastrophes which happened in the past will recurr, although we do notknow when.

The Krakatau Great Eruption in 1883 was due to the collapse of the volcanic body(>100 years ago), creating the present day Krakatau Caldera.

There same event could have happened before, this could have happened before in 416 AD (NOAA) and in 523 AD (Wohletz).

This same phenomenon could happen again in the future. If it does the losses ofhuman lives, dwelling houses, buildings, infrastructures could be many fold.


4/59

TOPICS TO BE DISCUSSED

I. Earthquake Risk in Indonesia

II. Legal Aspect

III. MAIPARK : Establishment & Achievement

IV. Risk Management of Natural Disaster


5/59



II. Legal Aspect




6/59

Worlds and Indonesias Earthquake Epicenter Map

for Earthquake with Magnitude > 5.5 (1964 2010)

Almost 20% of Damageable and tsunamigenic

Earthquake Occurred in Indonesia.


7/59

Earthquake occurrences in Indonesia formagnitude more than 5,0.

Overall, it is rising in number since year of 2000.

Histogram: Number of Earthquake in Indonesia from 1965 to April 2009.

EARTHQUAKE HAZARD IN INDONESIA


8/59

Los Angles, Mexico City and Yogyakarta:Los Angles, Mexico City and Yogyakarta: local geology and soil play very important roles in earthquake damage.

Remote epicenters could brutally hit cities.

Mexico City is the most significant case, whereas 350km of earthquakes hypocenter distance destroyed177 buildings completely.

Los Angles EQ, 1987 Mexico City EQ, 1985

Yogyakarta EQ, 2006


9/59

ECONOMIC LOSSES AND HUMAN CASUALTIES DUE TO EARTHQUAKE 2004 2010 (June)

Earthquake Events Date Magnitude CasualtiesEconomic Loss

(million USD)

Insured Loss (million

USD)

Nabire Eq 26.11.04 7.2 31 55.00 0.37

Aceh Eq - Tsunami 26.12.04 9.2 126,732 5.00 68.40

Nias Eq 28.03.05 8.6 905 668.00 0.22

Padang Eq 10.04.05 6.7 0 22.20 0.22

Yogyakarta Eq 26.05.06 6.3 5,749 3.10 28.90

Pangandaran Eq 17.08.06 7.7 637 17.50 0.31

Padang Eq 06.03.07 6.3 67 167.00 5.60

Bengkulu Eq 12.09.07 8.4 25 164.00 10.10

Dompu Eq 26.11.07 6.7 3 8.80 -

Dompu Eq 07.08.08 5.7 0 12.90 -

Gorontalo Eq 16.11.08 7.3 1 380.00-

West Papua Eq 04.01.09 7.6 4 320.00-

West Java (Tasikmalaya) Eq 02.09.09 7.2 81 790.00 5.08

West Sumatra (Padang) Eq 30.09.09 7.6 1,117 2,080.00 90.00


10/59



II. Legal Aspect




11/59

LEGAL ASPECT

Law Number 24/2007 :

National Disaster Management.

Government Regulation Number 21/2008 :

Implementation of National Disaster Management.


12/59

DISASTER MANAGEMENT LAW OF INDONESIA (1)

Disaster Management Law of Indonesia Number 24/2007 and

Government Regulation Number 21/2008 mention that :

The Government encourages the participation from Private Sectors inthe national risk management.

(Law Number 24/2007 section 28, 29, 57, 59 and Government

Regulation Number 21/2008 section 67, 75, 87)

The law stated that the BNPB is the sole agency to perform disaster

management (Ministerial level).


13/59

DISASTER MANAGEMENT LAW OF INDONESIA (2)

The Government of Indonesia has the obligation to protect the

citizens against any disaster.

This Law stipulates that every Indonesian citizen has the right

to be protected against any disaster.

Encourages the participation of private sectors in nationaldisaster management programs.


14/59



II. Legal Aspect




15/59

INDONESIAN EARTHQUAKE REINSURANCE POOL

y Indonesian Earthquake Reinsurance Pool (IERP)

Established in December 2002, start operation 1st January 2003

Decree of Directorate General of Financial Institution, Ministry of Finance

Number : SE-1505/LK/2002Date : April 12, 2002

y PT. ASURANSI MAIPARK INDONESIA

Established in December 2003, start operation 1st January 2004

Decree of Director General of Financial Institution, Ministry of Finance

Number : SE-6047/LK/2003

Date : November 11, 2003


16/59

PT. ASURANSI MAIPARK INDONESIAMISSION STATEMENTS

To promote proper handling of earthquake insurance in indonesia

insurance industry

To collate statistic, prepare nationwide database and risk profile

To do research and studies on earthquake risk and related matters

To generate local capacity


17/59

SURVEYS AND RESEARCHS BY MAIPARK

seismological research

Earthquake intensity survey

Geophysical and Geological survey

Catastrophe model:

Earthquake and Flood hazard


18/59

Sumatra Oblique Subduction

Mentawai thrust fault

Sumatra fault zone

(From Left to Right)

Simple Explanation

A seismotectonic sketch map showing the segments ofSumatra Fault Zone and the Mentawai Fault Zone.A seismotectonic sketch map showing the segments ofSumatra Fault Zone and the Mentawai Fault Zone.

Segment of Sumatra Active Faults,Segment of Sumatra Active Faults,

Their Fractal Dimensions and SeismicityTheir Fractal Dimensions and Seismicity

Cities along west cost of

Sumatra facing the subduction

earthquake and tsunami threat.

Cities along Barisan Mountain

facing the shallow earthquake

due to Sumatra Fault activity.


19/59

Bukit Tinggi, WestSumatra: Settlement was Dramatically Stand on the Sumatra Fault Line.Bukit Tinggi, WestSumatra: Settlement was Dramatically Stand on the Sumatra Fault Line.

Geological Survey at SumatraGeological Survey at Sumatra

Site: Bukit Tinggi, West SumatraSite: Bukit Tinggi, West Sumatra


20/59

Research: Seismic Activity ofSumatra Fore Arc Region.Research: Seismic Activity ofSumatra Fore Arc Region.

Cummulative numbers of

earthquake occurrences in Sumatra

fore-arc (1964 2009)


21/59

SUMATRA FAULT ZONE

Right lateral

Analogous to the San Andreas Fault in California

Not one single fault, but a fault zone, broken into >13 segments

1650 km (Banda Aceh-Semangko Bay in Lampung)

It dissects the Barisan Range

- on top of the Barisan Range:

- volcanoes-acid volcanoes

- In numerous places there are sand layers-water saturated sand layers

A great potential for liquefaction. Dangerous for buildings and infrastructure


22/59

Geological Survey at SumatraGeological Survey at Sumatra

Site: Kepahyang Regency, BengkuluSite: Kepahyang Regency, Bengkulu

Geological Survey: research on soil condition at WestSumatra and Bengkulu.Geological Survey: research on soil condition at WestSumatra and Bengkulu.


23/59

AfterAfter--Earthquake Survey: Research on How Dwelling Houses Construction Response to Earthquake?Earthquake Survey: Research on How Dwelling Houses Construction Response to Earthquake?

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Desa Kadindi Atas, Kec. PekatSite: Desa Kadindi Atas, Kec. PekatEarthquake: M 5.7Earthquake: M 5.7

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Desa Kadindi Atas, Kec. PekatSite: Desa Kadindi Atas, Kec. PekatEarthquake: M 5.7Earthquake: M 5.7


24/59

Geophysical Survey: research on soil condition using gravity method atGorontalo Province.Geophysical Survey: research on soil condition using gravity method atGorontalo Province.

Gravity Survey at GorontaloGravity Survey at Gorontalo

Site: Tolingula, Gorontalo ProvinceSite: Tolingula, Gorontalo Province


25/59

Fault Line

Subduction

Epicenter

Local Fault as seismic source in Java Island.Local Fault as seismic source in Java Island.


26/59

Southeastern part of Mount. Merapi.It consist of lava flow, pyroclastic flowand laharic deposits.

Bantul, which was mostly devastatedduring the 2006 earthquakes, due to thesoft foundation of the rock, where the

seismic waves acquired a strongamplification.

Limestone deposits from Mount. Kidul area.

River deposits from the Opak River.

Reef limestone, calcarenite.

Limestone and marly sandstonedeposit from Setolo formation.

Andesitic breccias, tuffs, lapilli tuffs.

Unsorted debris from Kebobutak formation.

At top right : remnants of the old Merapihalfly surrounding the young cone ofMount. Merapi. undiferrerentiated tuffs,ashes, breccias, agglomerate and lavaflows. This are young volcanic deposits ofMount. Merapi included solid lava flowsfrom Mount. Merapi, extensions of lavatongues protruding from the crater area.

26

Gempa Yogyakarta, 26 Mei 2006Gempa Yogyakarta, 26 Mei 2006

BantulBantul

RegencyRegency

Eq EpicenterEq Epicenter

WonogiriWonogiri

RegencyRegency

150.000 rumah150.000 rumah

1.7501.750

RumahRumah


27/59

Resistivity profile across Bantul area (Yogyakarta, Central Java)

The 2 kilometers thickness of soft sedimentbeneath Bantul amplificated the earthquakewave, 4.143 casualties in Bantul.

Bantul Gunung Kidul

6.3 SR6.3 SR

Magnetoteluric profile shows the vulnerability ofBantul Area due to its soil condition (Grandis, Widarto and Andriansyah, 20Magnetoteluric profile shows the vulnerability ofBantul Area due to its soil condition (Grandis, Widarto and Andriansyah, 2007)07)

BANTUL GUNUNG KIDUL

In the other hand, only 81casualties in Gunung Kidul, altoughit is positioned closer to earthquakeepicenter.


28/59

Zoom Area

Dompu Earthquake, Sumbawa. August 7, 2008.Dompu Earthquake, Sumbawa. August 7, 2008.

M 5.7 (Depth 10 km). This erthquake destroyed 1.396 dwellingM 5.7 (Depth 10 km). This erthquake destroyed 1.396 dwellinghouses in Sumbawa Province. Data Source: BNPB (August 11, 2008)houses in Sumbawa Province. Data Source: BNPB (August 11, 2008)

EQ EpicenterEQ Epicenter

I N D O N E S I A

1.365 rumah1.365 rumah

41 rumah41 rumah

28


29/59

The dwelling houses in Moyo Island, even though closer to the epicenter, are less damaged compare to those

around Dompu, which are located of lose volcanic pyroclastic debris from Mount Tambora.

Here the Seismic Waves obtained a strong amplification.

Moyo Island however is built up of reef limestone.

Field survey at WestSumbawa: soil condition also vulnerable to this Province.Field survey at WestSumbawa: soil condition also vulnerable to this Province.


30/59


Dompu Earthquake, Sumbawa. AugustDompu Earthquake, Sumbawa. August7, 2008. M 5.7 (Depth 10 km).7, 2008. M 5.7 (Depth 10 km).

DOMPU REGENCY (50DOMPU REGENCY (50 100 Km from100 Km from

Epicenter):Epicenter):

1.365 Unit Dwelling Houses Medium and1.365 Unit Dwelling Houses Medium andHeavy DamageHeavy Damage

11 Injured11 Injured

2000 Refugees2000 Refugees

Data Source: BNPB (August 11, 2008)Data Source: BNPB (August 11, 2008)

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Kecamatan Pekat, DompuSite: Kecamatan Pekat, DompuEarthquake: M 5.7Earthquake: M 5.7

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Nangamiro, DompuSite: Nangamiro, DompuEarthquake: M 5.7Earthquake: M 5.7

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Kadindi Village, DompuSite: Kadindi Village, DompuEarthquake: M 5.7Earthquake: M 5.7


31/59


Dompu Earthquake, Sumbawa. AugustDompu Earthquake, Sumbawa. August

7, 2008. M 5.7 (Depth 10 km).7, 2008. M 5.7 (Depth 10 km).

MOYO ISLAND (Epicenter Area):MOYO ISLAND (Epicenter Area):

41 Unit Dwelling Houses Medium and41 Unit Dwelling Houses Medium andHeavy DamageHeavy Damage

3 Injured3 Injured

No RefugeeNo Refugee

Data Source: BNPB (August 11, 2008)Data Source: BNPB (August 11, 2008)

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Labuan Haji, Moyo IslandSite: Labuan Haji, Moyo IslandEarthquake: M 5.7Earthquake: M 5.7

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Labuan Haji, Moyo IslandSite: Labuan Haji, Moyo Island

Earthquake: M 5.7Earthquake: M 5.7

DOMPU EARTHQUAKE SURVEY, 7DOMPU EARTHQUAKE SURVEY, 7 AUGUST 2008AUGUST 2008Site: Labuan Haji, Moyo IslandSite: Labuan Haji, Moyo Island

Earthquake: M 5.7Earthquake: M 5.7


32/59

Earthquake; Jakarta

and Surrounding Area

32


33/59

South Java Seismic GapSouth Java Seismic Gap


34/59

Paleo-tsunami Research

34

Site BRN-01Gunung Kidul Survey Sites


35/59

35

Site KRK-02



36/59

Findings : (1)

Some areas along the South Coast of Java are tsunami

prone. The inlets, bays, and low land regionsinlets, bays, and low land regions.

Not the entire coastline are tsunami proneNot the entire coastline are tsunami prone. Even though

large earthquake occur off shore. Due to the morphology of

the coast. Some areas are being protected by small

limestone hills (bio-herm) which might provide save area forthe people to run to during times of emergency.



37/59

An early warning system is really and hardlyneeded, even as primitive tower with human

observers on the watch is good enough than

none. Unfortunately this system is only

effective at day time.

A wall of sea waves can be seen approaching

the shore and there is timeenough for theobservers to sound the alarm and to climb

down the tower to save them self.

Preceding the tsunami waves more often than not, the sea can be seen receding from the beach. Along

stretches of beach could run dry. Please remember the local wisdom of local people ofSimelue : if you see

receding run to higher ground. We must use this to teach people (children, vacationers, swimmers) of this.This is very important for vacationers (bathers, swimmers and children playing in the water)

This whole things can only be done if we have an early warning systemdone if we have an early warning system. This we have notThis we have not. But the local

communities can erect bamboo observation towers near the beach and having same people watching the

sea all the time and warn people of the impending danger.

Findings : (2)


38/59

38

Merapi Eruption; Survey of damaged area


39/59

39


40/59

40

Inventory

Hazard

Vulnerability Loss

PADANG EARTHQUAKE 30/09/09

CATASTROPHE MODEL - EARTHQUAKE


41/59


42/59

Earthquake EpicenterM5.7 (Depth: 20 km)

April 16th, 2009 (08:03:42 WITA)

I II III IV V VI VII VIII IX X XI XII

Intensity (MMI)

Catastrophe Modeling: Economic Loss Calculation within Hours after an Earthquake Occurrence.Catastrophe Modeling: Economic Loss Calculation within Hours after an Earthquake Occurrence.

DAMAGE ESTIMATION WITH CATASTROPHE MODEL

MAIPARK Catastrophe Modeling estimated IDR 108Billion of losses from Palu Earthquake. This earthquake

occurred from Palu Koro Fault activity.


43/59

FLOOD AND FLOODING

Flooding has become a very menacing problem in Indonesia

In terms of money the yearly losses due to flooding have

exceed the losses due to earthquake

MAIPARK starts studying this, and starts to build a database


44/59

Flood in Indonesia

Rainfall FloodFlash FloodCoastal Flood

Flood Catalogue in Java Island

* Derived from MAIPARKs flood catalogue

411

15

Jakarta

3444

107

1219

140 135

8

2002-20092010

Indonesian Flood Catalogue during 2002-2009*

MAIPARKs FLOOD CAT-MODEL| Jakarta as a Pilot Project |


45/59

PRE-ELIMINARY STUDY: FLOOD HAZARD

MODELINGMAIPARK starting to build a new

catastrophe model:

Flood Hazard ModelFlood Hazard Model

We cooperating with various

institution related to meterology,hydrogeology, planology, geography

and other earth sciences.

This model hopefully would useful

for mitigation and risk management

due to flood hazard.

Flood map along Bengawan Solo River (Forum Peduli Bencana, 2009)Flood map along Bengawan Solo River (Forum Peduli Bencana, 2009)

DAM BURST

GRESIK

LAMONGAN

TUBAN

BOJONEGORO

River

AdministrativeBorder

FloodPotential Area

Flood Area


46/59

Risk Awareness Campaign

Conducted in 292 sub-villages

in Bantul District, Yogyakarta

Province, 2008.

Attended by 12,000 participant


47/59


48/59

THE NECESITY AND URGENCY OF

HAVING A RISK MANAGEMENT

PROGRAM

INDONESIA HAS EVERY REASON TO PERFORM ITMORE ECONOMICALTHROUGH AN INSURANCE

SCHEME

So far, all risk financing techniques rely solely on

state budget


49/59

POST-DISASTER SPENDING 2001 - 2007

SOURCE: MINISTRY OF FINANCE, REPUBLIC OF INDONESIA

-

200

400

600

800

1,000

1,200

1,400

2001 2002 2004 2005 2006 2007

676744 1515

176176

1,2781,278

1,1121,112

In Million USDIn Million USD


50/59

PRE-DISASTER SPENDING 2001-2007

-

50

100

150

200

250

300

2001 2002 2004 2005 2006 2007

6262

9797

114114

136136

232232

262262

SOURCE: MINISTRY OF FINANCE , REPUBLIC OF INDONESIA

In Million USDIn Million USD


51/59

INSURANCE PROVIDES A BETTERALTERNATIVE IN FINANCING RISK OF

NATURAL DISASTER !

RISK MANAGEMENT OF NATURAL DISASTER:

EARTHQUAKES


52/59

Other Countries : Insurance industry and government

sponsored insurance scheme only a response after

occurence of a big earthquake causing serious damage

Indonesia: Insurance supervisory authority and insuranceindustry prepared themselves long before serious

earthquakes hit Indonesia

How Indonesian Insurance Industry

Prepare Itself to Participate in Natural

DisasterRisk Management


53/59

Indonesia Land Area: 5,193,166 Km5,193,166 Km22

5 Biggest Islands

KalimantanKalimantan :: 539,460539,460 KmKm22

SumatraSumatra:: 474733,,660066 KKmm22

Papua:Papua: 421,952421,952 KmKm22

JavaJava:: 132,035 km132,035 km22

Sulawesi:Sulawesi: 89,035 km89,035 km22

Japan

394,744 Km2

Only 83% ofSumatra

New Zealand

268,671 Km2

Only 57% ofSumatra

Taiwan

32,261 Km2 only36% of Sulawesi

COMPARATIVE OVERVIEW OF INDONESIA AND COUNTRIES HAVING

AN INSURANCE SCHEME


54/59

CRESTA Zone 3 of Indonesia

West Java, Jakarta and Banten

Total Area :

44.718 Km2

Total of Residential :

9.839.878 Units

CRESTA Zone 5 of Japan

Tokyo, Yokohama and Chiba

Total Area :

9.601 Km2


12.491.692 Units


55/59

CRESTA Zone 5 of Indonesia

East Java

Total Area :

47.922 Km2


9.873.440 units

CRESTA Zone 8 of Japan

Osaka, Kyoto and Kobe

Total Area :

27.091 Km2


8.676.647 Units


56/59

EARTHQUAKE INSURANCE SCHEME

Features of Required Earthquake Insurance Scheme:

The crux of the matter: Quick response to asses the damage (within two weeks after area accessible)

Quick claims payment (two weeks after assessment)

Deployment of nation wide insurance network necessary

Strong local and international capacity needed


57/59

MAIPARK

Central and Provincial Government

MAIPARK and Indonesian

Insurance & Reinsurance Companies

Munich Re

Swiss Re

ACR

AON-Benfield

Indonesian reinsurance companies

TACTICS AND STRATEGY

A Full Applications of the PPP Principle and the Corporate Social Responsibility


58/59


59/59

Thank You

maipark asean seminar drf fys 310311

Documents