This study comprises a review ofgovernment post-disaster safety nets as well as thoseprovided by the private insurance market in four countriesof Central Europe, namely the Czech Republic, Hungary,Poland, and Slovakia. The study attempts to establish theextent of financial vulnerability of governments andhouseholds to natural hazards in four countries of CentralEurope by examining: 1) the fiscal policy of four CentralEuropean countries in the areas of post-disaster relief andreconstruction; and 2) the extent of catastrophe insurancecoverage provided by the private insurance industry in theregion as well as the technical capacity of nationalinsurance markets to manage catastrophe insurance risk. Thestudy is intended for four principal audiences: governmentofficials in Central European countries; World Bank staffinvolved in disaster risk financing and reconstructionprojects; the international development community as well asthe private insurance and reinsurance industry. This reportwas prepared based on a series of written surveys followedby interviews with key government officials, governmentexperts and insurers in four countries of the study. Thefield work has been supplemented by a review of thepertinent literature. The structure of the report is asfollows. chapter one reviews the level of catastropheinsurance penetration in the four countries of CentralEurope. It also provides an overview of fiscal policies andmechanisms currently in place for dealing with nationalemergencies. Chapter two presents the main findings andpolicy recommendations of the study.