Goals for Strategic Impacts
- Enhance international cooperation, governance and system building for Climate Risk Insurance (CRI)
- Increase capacities and strengthen voices of vulnerable countries and communities in international Climate and Disaster Risk Financing and Insurance (CDRFI) Governance
- Support countries to implement inclusive CDRFI strategies and protection approaches
- Promote evidence based approaches in CRI
Highlights and Impacts from Our Work
Launch of the Sustainable Insurance Facility with the V20
Ahead of the New York Climate Summit on September 23, we supported the V20 Group in kicking off their Sustainable Insurance Facility (SIF) by discussing the proposed Operationalization Framework with key partners. In doing so, the V20 called for greater ambition and action for addressing a key gap within the existing climate and disaster risk financing architecture: the lack of climate-smart insurance for micro, small and medium enterprises (MSMEs) in vulnerable economies.
We developed the Draft SIF Operationalization Framework jointly with the UNEP Principles for Sustainable Insurance (PSI) Initiative and the V20 Finance Advisory. It provides a proposal for achieving these goals through collaborative efforts among key partner institutions. Through combining complementary action under dedicated financing vehicles, the MSME protection gap can be addressed sustainably.
MCII is advising national governments to develop strategies (including insurance) to better cover risk financing needs especially to protect marginalized and affected populations. MCII has been partnering with Frankfurt School of Finance and management in a technical assistance of the Asian Development Bank (ADB) to develop a Disaster Risk Financing Strategy for Myanmar. After several missions to Myanmar to discuss the objectives, structure and scope of a Disaster Risk Financing Strategy with relevant ministry departments, the project team has drafted the strategy and delivered it to the government for their feedback.
MCII also started to work on social protection policies. Adaptive social protection strategies of governments will be an important framework condition to enable more systematic Climate Risk Insurance programmes. MCII, in an expert consortium, started to work with the Government of Indonesia to develop an adaptive social protection roadmap. This strategy document will structure investments for better protection against climate and natural hazard risks, and help to improve inter-ministerial cooperation.
Integrating Insurance into Climate Risk Management
Alongside project partner GIZ, we launched the interactive website that hosts the manual for navigating Integrated Climate Risk Management (http://bit.ly/MCII_ICRM).
In 2015, the international community recognized the need to ensure policy coherence that better understands the risks of climate change, and helps countries anticipate and recover from disaster impacts through innovative financial solutions. At the national level, practical approaches to mainstreaming adaptation and disaster risk measures into the national and sectoral planning proves crucial to enabling sustainable development pathways. As such, the Integrating Insurance into Climate Risk Management framework was created as a comprehensive climate risk management approach that strategically combines insurance solutions, with other risk management and adaptation measures. It focuses on unlocking opportunities through insurance solutions when governments aim to prevent disaster impacts, managing residual risks that cannot be prevented, as well as preparing for inevitable disaster impacts, while ensuring efficient response and recovery.