10 November 2015, Washington, DC
In recent years there has been considerable interest in the potential role of insurance-based mechanisms in promoting resilience to the impacts of climatic variability and climate change. Using an evidence based approach, this session explores the research, cases, successes, challenges, and opportunities for engagement in climate insurance.
MCII has been invited to attend this side event at the CIF meeting to focus on the role climate risk insurance could play in safeguarding livelihoods after extreme weather events. Sobiah Becker presented on MCII’s work in the Caribbean as an example and focused on the role of CRI in reducing social vulnerability, and poverty among the target population i.e. low-income individuals. As early results have demonstrated, the contribution of climate risk insurance to the increasing resilience of vulnerable individuals is tangible, and there is a case to be made for promoting microinsurance as a viable risk transfer instrument. To reach scale and a higher level of maturity, climate risk insurance requires the consistent support of donors in addressing gaps and barriers to market, developing public goods and services for the benefit of affected populations.
Overview of the session
The panel will present an overview of the existing initiatives on micro and macro level insurance as one of the possible tools for coping with climate change impacts. Panelists will cover the range of insurance products currently in use by global insurers and look at innovative business models targeting specific climate change challenges. The panel will present an overview of experiences in the developed world – successes and failures and compare with the experience in developing countries.
Building on the evidence on the role of insurance-based mechanisms in promoting climate resilience, panelists will explore how concessional financing from public funding sources can play a role in creating viable business models and how the Pilot Program for Climate Resilience might engage in climate insurance options.
The Climate Investment Funds’ (CIF) Pilot Program for Climate Resilience (PPCR) is hosting a panel discussion to enhance knowledge and understanding of insurance as a financial risk mitigation tool to adverse effects of climate change on businesses, industries, and livelihood as well as a means to increase resilience and preparedness.
The CIF Administrative Unit in collaboration with Multilateral Development Banks (MDBs) and Vivid Economics is developing an evidence base on insurance-based mechanisms as a means of promoting climate resilience in developing countries. The work draws upon experience from the global insurance industry and from MDB investments in insurance-based mechanisms to promote climate resilience.
- Rachel Allen (Senior Program Coordinator for the PPCR): Panel Moderator
- John Ward (Managing Director at Vivid Economics): Presentation on building an evidence base on the role of insurance-based mechanisms in promoting climate resilience
- Karsten Löffler (Managing Director of Allianz Climate Solutions GmbH): Panelist
- Sobiah Becker (Project Manager, United Nations University): Panelist
- Craig Davies (Senior Manager for Climate Change Adaptation, EBRD): Panelist
- Kanta Kumari Rigaud (Lead Environmental Specialist, World Bank): Panelist