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Cambodia is highly prone to natural hazards, in particular floods, droughts, and storms. The coronavirus disease (COVID-19) pandemic has also had a long-lasting and severe impact on the economy through medical costs, reduced productivity and unemployment during lockdowns, and interruptions to trade and supply chains.

This country diagnostic assesses disaster risk financing (DRF) in Cambodia and its enabling environment for the efficient and effective use of financing instruments and introduction of new ones. These can enhance the financial resilience of the country to such disasters, epidemics, and pandemics. The assessment covers risk retention and risk transfer instruments
to the insurance, reinsurance, and capital markets.