Risk Analytics

Goals for strategic impacts

• Establish analytics to support decisions in adaptation and risk management
• Define the “smart” mix of climate response options, including climate risk insurance
• Further operational concepts of improved climate risk management also through academic collaborations

Highlights

Applying and improving the ECA Framework

The Economics of Climate Adaptation (ECA) Studies project implemented by UNU-EHS has been working on individual studies as well as several supporting material. Among that are the lessons learned in the implementation, and further material guiding stakeholders into the framework, making it more approachable for decision makers and practitioners. Recently, an online platform called ECA Network has been launched to provide a space to make such material available (www.eca-network.org). For MCII it is an important opportunity to work with the ECA methodology and utilize the lessons learned gathered by UNU-EHS to link the framework and evidence into better informed decision making regarding when applying insurance approaches makes economic sense and when other adaptation options are better suited.

Research Partnership Formed

Along with UNU-EHS, the University of the South Pacific (USP), the University of the West Indies (UWI) and the UNCDF/UNDP Pacific Financial Inclusion Programme (PFIP), we have established a research collaboration to facilitate inter-regional South-South learning and research. With the Climate Risk Insurance Research Collaboration (CRIRC), the partners have established a framework for coordination and collaboration on research, development and publication of academic research and policy papers on disaster risk finance, insurance, and social payment.

Feasibility of Insurance Research

MCII initiated a Ph.D. project which is looking at the potential role of risk transfer mechanisms to address residual flood risk in the Lower Mono River Basin in Togo and Benin. In doing so, existing and informal risk transfer mechanisms will receive increased attention and it will be investigated if and to what extent they could be complemented by formal risk transfer mechanisms to address flood risk, such as insurance. The research project will deliver valuable insights on local perspectives on risk transfer mechanisms in the West African region. The results of the research project will be published in peer-reviewed academic journals and MCII publications.