How to make climate risk insurance work for the most vulnerable: What next after the Paris Agreement?
Climate change threatens sustainable development and resilience, impairs socio-economic development and reinforces cycles of poverty across the globe. Because the risks often fall more heavily on those least able to reduce or recover from them, there is a need for assistance for the most vulnerable people and countries. The absence of economic safety nets which could cushion the adverse impact of these climate-related disasters remains a serious concern.
Well-designed climate risk insurance – when applied in conjunction with other disaster risk management measures and strategies – can protect people against climate shocks by acting as a safety net and buffer shortly after an extreme weather event. In this way, insurance can promote opportunities by helping to lessen financial repercussions of volatility and can stimulate transformation by incentivizing risk reduction behaviour and fostering a culture of risk management.
As outlined in the Paris Agreement, the relevance of insurance as a tool within comprehensive climate risk management has been recognized by policymakers and practitioners around the world. Many actors are currently investing resources in developing and supporting climate risk insurance schemes, and are looking for ways to implement insurance on a larger scale; many of these efforts are specifically targeted at covering the poor and vulnerable in developing countries. Now is the time to learn and adapt from existing pilots and schemes, to ensure that climate risk insurance efforts effectively contribute to supporting poor and vulnerable people in finding climate-resilient development pathways.
The MCII Side Event contributes to the learning process by presenting the results a study that MCII did in the context of the G7 InsuResilience, called “Climate risk insurance for the poor & vulnerable: How to effectively implement the pro-poor focus of InsuResilience”.
Based on the MCII Pro-Poor Principles for Climate Risk Insurance, experts will elaborate on how insurance tools can be effectively implemented to benefit poor and vulnerable people by bringing in their distinct perspectives and organizational backgrounds.
Frank Fass-Metz (BMZ): Status quo of the G7 InsuResilience Initiative and Germany’s support for climate risk insurance.
Thomas Loster (Munich Re Foundation): THE PRIVATE SECTOR PERSPECTIVE: WHAT DO THESE SEVEN PRINCIPLES MEAN FOR INSURESILIENCE?
Aaron Oxley (RESULTS UK): Views from civil society: The importance of focusing on effectively meeting the needs of poor and vulnerable people.
(tbc) Practical Application of Climate Risk Insurance on the ground: An operational perspective: What do the Pro-Poor Principles mean for on-the-ground implementation of insurance projects?
MCII Press Briefing (09 Nov, 10:00-10:30, Dhakla)
Michael Zissener (MCII): 7 GUIDING PRINCIPLES HOW TO MAKE CLIMATE RISK INSURANCE WORK FOR POOR AND VULNERABLE PEOPLE.
Thomas Loster (MCII & Munich Re Foundation): Recommendations from the private sector on how to apply climate risk insurance in developing countries.
Christoph Bals (MCII & Germanwatch): Recommendations from civil society on the implementation of the G7 InsuResilience initiative.
PIK – MCII Joint Side Event (16 Nov, 10:30-12:00, Bratislava, EU Pavilion)
find the flyer HERE
The IPCC AR5, G7 leaders and COP21 have addressed climate risk insurance (CRI) as an important tool to enhance the resilience of the most vulnerable against climate change risks. The side event will specify the relevance of CRI in the context of agricultural insurance solutions and Loss & Damage.
1) Often, a widespread implementation of crop-insurances fails because of an unreliable determination of yield loss claims, notably in Sub-Saharan Africa. If climate-attributable yield losses could be assessed adequately, this information could be used to determine yield loss claims for crop micro-insurances to stabilize smallholder farmers’ incomes and decrease the vulnerability of the food production system.
2) The G7 InsuResilience has the opportunity to change the paradigm of how poor & vulnerable communities manage climate risks. To ensure that CRI contributes to climate-resilient development pathways, it is key to effectively tailor CRI to meet the needs of affected people.
What is the significance of climate risk insurance (CRI) in the context of agricultural insurance solutions and Loss & Damage?
How can climate risk management be improved by integrating insurance and what role does the private insurance sector play?
How can yield loss assessment fill the gaps for crop micro insurance schemes in order to stabilize smallholder farmers’ incomes and decrease the vulnerability of the food production system?
What is the opportunity for the G7 InsuResilience Initiative to change the paradigm that how poor & vulnerable communities manage climate risks?
Christoph Gornott (PIK): CLIMATE ATTRIBUTABLE YIELD LOSS INDICES – A WAY TO BRIDGE THE DATA GAP
Hans Joachim Schellnhuber (PIK)
Peter Hoeppe (MCII)
Branko Wehnert (GIZ)
Karsten Löffler (Allianz Climate Solutions)