What can we learn from Nicaragua’s new, preventative approach to storms?

Nicaragua has shifted toward a proactive disaster risk management (DRM) strategy, integrating it into development planning to reduce the impact of extreme weather. Following Hurricanes Eta and Iota in 2020, the country demonstrated this shift through rapid damage assessments, the use of parametric insurance, inclusive recovery projects, and effective early warning systems that significantly reduced fatalities compared to previous storms.

• Nicaragua has moved from a reactive disaster-focused model to a proactive disaster risk management (DRM) approach, which is now used as a tool for sustainable development to guide decisions during emergencies.
• The country improved its capacity for rapid damage and loss assessment, completing evaluations within three weeks of Hurricanes Eta and Iota. This was achieved through the Ministry of Finance's use of international methodologies like Post Disaster Needs Assessments (PDNA) and Damage and Loss Assessment (DaLA), with technical support from the World Bank since 2016.
• Nicaragua utilized innovative financing by increasing its tropical cyclone insurance coverage through the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) based on INETER recommendations. This resulted in $30.6 million in payouts after Hurricanes Eta and Iota, providing essential short-term liquidity.
• The implementation of reliable early warning systems and evacuation procedures, which began three days before the 2020 storms, led to six times fewer fatalities than those recorded during Hurricane Felix in 2007.
• Recovery efforts are being supported by an $80 million World Bank credit for the Nicaragua Hurricanes Eta and Iota Emergency Response Project, which focuses on restoring services and economic activities while targeting the needs of women, indigenous people, and Afro-descendant populations.
• To improve accountability and resource tracing, Nicaragua has implemented a DRM and climate change budget classifier across 14 entities and critical sectors with technical support from the World Bank.

APA

Wellenstein, A. (2021). What can we learn from Nicaragua’s new, preventative approach to storms? World Economic Forum. https://www.weforum.org/stories/global-risks/climate-change-tropical-storm-response-safety/

Chicago

Wellenstein, Anna. What can we learn from Nicaragua’s new, preventative approach to storms? World Economic Forum, 2021. https://www.weforum.org/stories/global-risks/climate-change-tropical-storm-response-safety/.

Wikipedia

{{cite report |last1=Wellenstein |first1=Anna |title=What can we learn from Nicaragua’s new, preventative approach to storms? |publisher=World Economic Forum |date=24 February 2021 |url=https://www.weforum.org/stories/global-risks/climate-change-tropical-storm-response-safety/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wellenstein2021what, author = {Wellenstein, Anna}, title = {{What can we learn from Nicaragua’s new, preventative approach to storms?}}, institution = {World Economic Forum}, year = {2021}, month = feb, url = {https://www.weforum.org/stories/global-risks/climate-change-tropical-storm-response-safety/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }