Bringing climate risk insurance forward – the 2nd InsuResilience Global Partnership Forum at the COP24 in Katowice, Poland
On December 10 KfW participated at the 2nd InsuResilience Global Partnership Forum "Paving the way to effective risk financing solutions". The Forum is the annual meeting of the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions (IGP). This year´s Forum took place at the margins of the UN Climate Conference (COP 24) in Katowice. The partnership counts more than 60 members, which convene annually to exchange experiences, share knowledge and raise awareness about disaster risk finance and insurance.
This year another prominent institution joined the Partnership at the IPG Forum. Rémy Rioux, IDFC Chairperson and CEO of Agence Française de Développement (AFD) officially signed the membership of IDFC to the InsuResilience Global Partnership, in the presence of the two co-chairs of the InsuResilience Global Partnership High-Level Consultative Group, namely Hon. Brenson Wase, Minister of Finance of the Republic of the Marshall Islands and Dr Maria Flachsbarth, Parliamentary State Secretary to the German Federal Minister for Economic Cooperation and Development (BMZ), as well as representatives of InsuResilience member institutions. On this occasion, the European Union also announced its membership to the Partnership.
Approaches to promote climate and disaster risk finance and insurance solutions in Pakistan, Colombia, Sri Lanka, Zambia and West Africa were discussed in five different sessions, including climate risk insurance concepts linked to KfW.
In the Sri Lanka session Barbara Schnell (KfW Sector Policy Director) invited representatives of the National Insurance Trust Fund of Sri Lanka and representatives of the insurance sector to discuss innovative solutions to better protect the most vulnerable segment of the population of Sri Lanka against the consequences of climate change through the national insurance scheme.
For Colombia, the first-ever partnership between an international NGO, the insurance industry and the municipalities of Manizales, Medellin and Cali presented their proposal to develop innovative and sustainable climate risk insurance products to improve the resilience of at-risk communities in Colombia against extreme weather events.
Both, the Sri Lanka and the Colombia session, debated insurance concepts which seek financial support from KfW’s (ISF). The ISF finances the development of innovative and sustainable climate risk insurance products in developing countries and emerging economies contributing to the overall goal of the IGP. The ISF is implemented by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
As a game changer in emergency and disaster relief, the pilot project ARC Replica was presented in the West Africa session. This innovative approach supported by KfW introduces a systematic shift in international aid from ex-post to ex-ante guaranteed financing. Dr Annette Detken (Head of Division, Economic Development and Education KfW) described the numerous advantages of the pilot by fostering a stronger cooperation and coordination of national disaster response and support measures by humanitarian actors, and explained why humanitarian actors play a significant role in saving livelihoods and supporting the poor in recovering faster from natural disaster and extreme weather events.
The Pakistan session "Disaster risk financing for enhanced fiscal resilience" examined current best practices in different countries on disaster risk financing and their relevance for Pakistan. Currently KfW is actively involved in preparing innovative approaches of climate risk insurance in Pakistan supporting decision makers to coordinate and develop suitable options.
About the InsuResilience Global Partnership (IGP)
Launched in 2017 the InsuResilience Global Partnership aims to strengthen the resilience of developing countries and to protect the lives and livelihoods of poor and vulnerable people against the impacts of disasters. The central objective of the Partnership is to enable timely and reliable post-disaster response and to better prepare for climate and disaster risks. Through the use of climate and disaster risk finance and insurance solutions the Partnership aims to reduce humanitarian impacts, help poor and vulnerable people recover faster, increase local adaptive capacity and strengthen local resilience. This complements ongoing efforts in countries to avert, minimise and address climate and disaster risks. The multi-stakeholder initiative brings together representatives from governments, civil society, international organisations, private sector, and the academic world. In particular, it builds on collaboration between G20 and V20 countries.