Japan will work with Southeast Asian nations like Laos and Myanmar to provide immediate financing after natural disasters so that recovery funds can be quickly distributed. Operations are slated to begin in 2019.
The Southeast Asia Disaster Risk Insurance Facility will be announced in May at the annual meeting of the Asian Development Bank's board of governors, reports the Nikkei Asian Review.
Participating countries will make the insurance payouts while Japan provides initial support through funding. The facility will invest funds it has accumulated and take out reinsurance from private insurers in Japan and elsewhere.
The facility is meant to provide rapid financial relief after typhoons, earthquakes and other disasters.
Japan's Ministry of Finance has been working to set up the new insurance framework in Laos, Myanmar and Cambodia, and it could eventually be extended to other ASEAN members.