Mabel C. Marulanda

Seismic vulnerability and risk evaluation methods for urban areas. A review with application to a pilot area

The most relevant seismic vulnerability and risk analysis methods are discussed and compared in this article using, as a pilot urban area, the city of Barcelona, Spain, where risk studies have been carried out over the last 15 years in the framework of different research projects. Most of the buildings in Barcelona, which have unreinforced masonry structure or reinforced concrete structure with waffled slab floors, show a high degree of vulnerability to earthquakes. The physical seismic risk but also the socio-economic implications of risk are considered in the article. The robustness of the innovative holistic approach, based on indicators related to the physical exposure, the social fragilities and the lack of resilience of urban area, is also proved. Using a geographic information system (GIS), the seismic risk results are described by means of scenarios of expected losses, but also as scenarios of probabilities of occurrence of predefined damage states.

Revealing the socioeconomic impact of small disasters in Colombia using the DesInventar database.

Small disasters are usually the product of climate variability and climate change. Analysis of them illustrates that they increase difficulties for local development-frequently affecting the livelihoods of poor people and perpetuating their level of poverty and human insecurity-and entail challenges for a countrys development. In contrast to extreme events, small disasters are often invisible at the national level and their effects are not considered as relevant from a macroeconomic standpoint. Nevertheless, their accumulated impact causes economic, environmental and social problems. This paper presents the results of an evaluation of the DesInventar database, developed in 1994 by the Network for Social Studies in Disaster Prevention in Latin America. In addition, it proposes a new version of the Local Disaster Index developed in 2005 within the framework of the Disaster Risk and Management Indicators Program for the Americas, with the support of the Inter-American Development Bank.

Estimation of Probabilistic Seismic Losses and the Public Economic Resilience—An Approach for a Macroeconomic Impact Evaluation

The Disaster Deficit Index (DDI) measures country risk from a macroeconomic and financial perspective, according to possible catastrophic events. The DDI captures the relationship between the demand for contingent resources to cover the maximum probable losses and the public sectors economic resilience; that is, the availability of internal and external funds for restoring affected inventories. For calculating potential losses, the model follows the insurance industry in establishing a probable loss, based on the critical impacts during a given period of exposure, and for the economic resilience the model computes the countrys financial ability to cope with the situation taking into account: the insurance and reinsurance payments; the reserve funds for disasters; the funds that may be received as aid and donations; the possible value of new taxes; the margin for budgetary reallocations; the feasible value of external credit; and the internal credit the country may obtain. Access to these resources has limitations and costs that must be taken into account as feasible values according to the macroeconomic and financial conditions of the country. This article presents the model of DDI and proposes it as a simple way of measuring a countrys fiscal exposure and potential deficit—or contingency liabilities—in case of extreme disasters to guide the governmental decisionmaking from economic, financial, and disaster risk reduction perspectives.

Probabilistic earthquake risk assessment using CAPRA: application to the city of Barcelona, Spain

The risk evaluation model CAPRA (Comprehensive Approach to Probabilistic Risk Assessment) is a techno-scientific methodology and information platform, composed of tools for evaluating and communicating risk at various territorial levels. The model allows evaluating losses on exposed elements using probabilistic metrics, such as the loss exceedance curve, the expected annual loss and the probable maximum loss, useful for multi-hazard risk analyses. In this article, the process of probabilistic seismic risk analysis is described, explaining the main features of the CAPRA modules of hazard, vulnerability and risk estimation applied to the city of Barcelona, Spain. In addition, according to the physical risk results and the information on the socioeconomic indicators of the city, this article presents the holistic evaluation of seismic risk, which is a valuable result to facilitate the integrated risk management by the different stakeholders involved in risk reduction decision making.

Earthquake Loss Assessment for Integrated Disaster Risk Management

Understanding probable losses and reconstruction costs due to earthquakes creates powerful incentives for countries to develop planning options and tools to cope with risk, including allocating the sustained budgetary resources necessary to reduce those potential damages and safeguard development. A specific catastrophic risk model has been developed to evaluate, building by building, the probabilistic losses and pure premiums of different portfolios, taking into account the seismic microzonation of cities. This model has been used to evaluate the fiscal contingency liabilities of the government and to build an optimal structure for risk transfer and retention, considering contingent credits, reserve funds, insurance/reinsurance, and cat bonds. Lastly, the model allows the evaluation of an exceedance probability curve of benefit-cost ratio, providing an innovative and ground-breaking tool for decision makers to analyze the net benefits of the risk mitigation strategies, such as earthquake retrofitting and seismic code enforcement. This article describes the model and the derived abovementioned tools, using the results of loss scenarios and the strategies implemented in some earthquake prone urban centers.

Disaster risk from a macroeconomic perspective: a metric for fiscal vulnerability evaluation

The Disaster Deficit Index (DDI) measures macroeconomic and financial risk in a country according to possible catastrophic scenario events. Extreme disasters can generate financial deficit due to sudden and elevated need of resources to restore affected inventories. The DDI captures the relationship between the economic loss that a country could experience when a catastrophic event occurs and the availability of funds to address the situation. The proposed model utilises the procedures of the insurance industry in establishing probable losses, based on critical impacts during a given period of exposure; for economic resilience, the model allows one to calculate the countrys financial ability to cope with a critical impact. There are limitations and costs associated with access to resources that one must consider as feasible values according to the countrys macroeconomic and financial conditions. This paper presents the DDI model and the results of its application to 19 countries of the Americas and aims to guide governmental decision-making in disaster risk reduction.

Design and implementation of a voluntary collective earthquake insurance policy to cover low-income homeowners in a developing country

Understanding and evaluating disaster risk due to natural hazard events such as earthquakes creates powerful incentives for countries to develop planning options and tools to reduce potential damages. The use of models for earthquake risk evaluation allows obtaining outputs such as the loss exceedance curve, the expected annual loss and the probable maximum loss, which are probabilistic metrics useful for risk analyses, for designing strategies for risk reduction and mitigation, for emergency response strategies and for risk financing. This article presents, based on probabilistic risk models, the design and implementation of a risk transfer instrument to cover the private buildings of the city of Manizales, Colombia. This voluntary collective instrument provides financial protection to both, the estate tax payers and the low-income homeowners through a cross-subsidy strategy; besides, it promotes not only the insurance culture but also the solidarity of the community. The city administration and the insurance industry are promoting this program using the mechanism of the property tax payment. This collective insurance helps the government to access key resources for low-income householders recovery and improve disaster risk management at local level.

Revealing the Impact of Small Disasters to the Economic and Social Development

The effects of natural hazard events of small or moderate size are not considered by many people as ‘disasters’, although they share the same origins and causes of large and extensive effects. The impact of these events cannot be underestimated, because in general terms, they typify the disaster risk problem of a city, region or country. This chapter does not debate risk regarding to extreme events with a long return period, but insular, real and daily risk that multiple communities are exposed to in rural areas and in small and large cities. The most of these disasters are the result of socio-ecological processes associated with environmental deterioration and are associated with persistent small hazard events such as landslides, avalanches, flooding, storms, and also lower scale earthquakes and volcanic eruptions.

Probabilistic Seismic Risk Assessment in Manizales, Colombia: Quantifying Losses for Insurance Purposes

A fully probabilistic seismic risk assessment was developed in Manizales, Colombia, considering assets of different types. The first type includes elements that are part of the water and sewage network, and the second type includes public and private buildings. This assessment required the development of a probabilistic seismic hazard analysis that accounts for the dynamic soil response, assembling high resolution exposure databases, and the development of damage models for different types of elements. The economic appraisal of the exposed assets was developed together with specialists of the water utilities company of Manizales and the city administration. The risk assessment was performed using several Comprehensive Approach to Probabilistic Risk Assessment modules as well as the R-System, obtaining results in terms of traditional metrics such as loss exceedance curve, average annual loss, and probable maximum loss. For the case of pipelines, repair rates were also estimated. The results for the water and sewage network were used in activities related to the expansion and maintenance strategies, as well as for the exploration of financial retention and transfer alternatives using insurance schemes based on technical, probabilistic, and prospective damage and loss estimations. In the case of the buildings, the results were used in the update of the technical premium values of the existing collective insurance scheme.

Holistic evaluation of seismic risk in Barcelona

Assessment of Vulnerability to Natural Hazards covers the vulnerability of human and environmental systems to climate change and eight natural hazards: earthquakes, floods, landslides, avalanches, forest fires, drought, coastal erosion, and heat waves