Author Archives: Theresa Lederer

Theresa Lederer

About Theresa Lederer

Theresa is a consultant in the RMS Capital and Resilience Solutions group, leading a range of projects in the team’s advisory function. Her work focuses on working with a range of private and public sector clients across the globe, to help them quantify, communicate and effectively manage catastrophe risk through a variety of innovative risk mitigation and transfer measures.

Her responsibilities include leading bespoke probabilistic hazard and loss assessments as well as the design, evaluation and optimization of custom risk transfer products. In addition, Theresa oversees the execution of catastrophe bond risk analyses, re-modeling and market commentary.

Theresa holds a master's degree in Mathematics from Cambridge University.

Impact Trek: How to Make Millions of Homes More Resilient

Just over a year ago, I was in Manila for a workshop on the design of PCDIP – the Philippines City Disaster Insurance Pool. Recognizing the Philippines as a country prone to earthquakes, typhoons and frequent flooding, as well as having a rapidly increasing economy, population and building stock, the design of PCDIP was funded by the Asian Development Bank and implemented by a consortium of consultants, led by RMS. The aim: to manage the risk that Philippine cities face from natural catastrophes through the use of parametric risk transfer, to give the cities a rapid source of funding when disaster strikes.

In March, I returned to Manila, alongside a team of both RMS colleagues and our clients on the annual RMS Impact Trek with Build Change – a longstanding RMS partner. RMS works closely with Build Change in promoting, and, crucially, implementing risk-reducing retrofit measures in low-income communities around the globe. This time, the focus of the trip was arguably less on risk transfer (as during my last visit to Manila), and more on risk reduction, because effective risk management must always be a combination of both – reduction and transfer.

Transferring risk from the first to the last dollar (or Philippine Peso…) is never efficient from a financial perspective; not to mention the non-financial benefits risk reduction measures can have on the lives and livelihoods of communities. At the same time, risk also cannot be fully “reduced away” – even after the most ambitious risk reduction measures some residual risk will always remain. And this is where risk transfer can provide vital protection, to ensure (or insure?) that adequate financial means are available in response to the most extreme catastrophe events.

During the Impact Trek, we spent a lot of time with the local Build Change team and some of their key partners – microfinance organizations, local and national government, and, most importantly, homeowners.

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