The direction of development on Mutual-aid for disaster of Local Finance Association

Our daily lives are exposed to disasters. Also many parts of the world are also exposed to natural disasters as the signs of climate change occur. These disasters that comes from climate change expand in their effects, and become unsuitable for adequate response. Based on the increase in the occurrence of large scale disasters due to abnormal climate, Local Finance Association needs to make efforts stated in the below. Members of local government that own, use and manage common property feel the need to continue to develop new business projects by discovering potential demands coming from climate change. Moreover, we need to review the opinion that pursues “One Stop Mutual-aid” which guarantees protection against all kinds of dangers by local government through joining mutual-aid just once. Mostly, in property insurance, as a form of comprehensive insurance, diverse dangers are taken care of through one insurance within a specific range and the author suggests benchmarking on this. Also, one needs to review the plan to increase the scope of the mutual-aid collateral of Local Finance Association. Currently, the scope that falls outside the compensation is too broad. As the scope of compensation increases, the fee of mutual-aid may also increase as follows, but this is an inevitable choice as a preparation for the current and future disaster. In that sense, rather than a limited listing of the kinds of collateral that are suitable, a comprehensive collateral system should be established. Other than that, one needs to build the danger management system that reflect the trend of increase of the scale of natural disaster, the frequency of the natural disaster occurrence, the size of damage. This stems from the role of mutual-aid as a national social safety net which has the characteristics of state insurance.