Last Monday, June 19th, UNU-EHS and UNCDF jointly organized a webinar to reflect on the key takeaways from implementing Climate and Disaster Risk Finance and Insurance (CDRFI) solutions in the Pacific during the inception phase of the Pacific Insurance and Climate Adaptation Programme (PICAP).
Since Pacific small island countries are highly vulnerable to natural hazards and climate change, PICAP was established to improve the financial preparedness and resilience of the local communities by developing affordable parametric microinsurance products, targeted at the agriculture, fisheries, retail, and tourism sectors with a specific focus on women, youth, migrants, and micro, small, and medium enterprises (MSMEs).
During the webinar, the team launched the much-anticipated publication: “ discusses PICAP’s key lessons learned under six thematic categories: (1) Partnerships, (2) Innovative Insurance Product Development, (3) Distribution, (4) Outreach and Capacity-Building, (5) Managing for Impact and Sustainability, and (6) Evidence-Based Programming.
During the webinar, an experienced panel of experts highlighted some of the crucial lessons listed in the publication and practical approaches to working with country stakeholders in addressing the protection gap. For example, in the face of mounting climate risks, Lesson #5 unveils the potential for climate risk insurance to complement national social protection systems. PICAP’s journey sheds light on the value of integrating climate risk insurance into existing safety nets, ensuring comprehensive support and resilience for vulnerable communities. This lesson serves as a reminder that climate resilience is a collective endeavor, bridging the gap between emergency response and sustainable development.
Another important lesson highlighted in the publication is the importance of strategically selecting weather data sources for parametric insurance. Parametric microinsurance, known for its quick payouts and flexibility, relies on historical and real-time weather data. Hence, there is a need to carefully assess available data sets during the product design phase to balance data quality and latency.
By sharing these lessons through the publication and the webinar, PICAP aims to contribute to the wider dialogue on climate change adaptation and resilience building. It also seeks to inform future engagements and foster collaboration among stakeholders in the Pacific region and beyond. In the context of climate change and natural hazards, these collective efforts and the commitment to continuous learning will enhance the financial preparedness and resilience of Pacific Islanders and beyond.
PICAP is jointly implemented by the United Nations Capital Development Fund (UNCDF), the United Nations Development Programme (UNDP), and the United Nations University – Institute for Environment and Human Security (UNU-EHS) through the Munich Climate Insurance Initiative (MCII) and aims to improve the financial preparedness and resilience of Pacific households, communities, small businesses, organizations, and governments towards the economic impacts of climate change-induced disasters through the development and deployment of market-based meso- and microinsurance products.