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Edition 02/2020

InsuResilience Newsletter

Dear Readers,

Welcome to our second newsletter issue of the year!

We are experiencing challenging times with unprecedented and compound risks that require fast decision making under uncertainty. As we have seen in recent climate shocks, such as the cyclone Amphan in Bangladesh and severe floodings in Central America, emergency responses have had to face the double challenge of providing quick disaster relief to the affected population while at the same time not putting them under increased risks of infecting each other with Covid-19. Under this emerging risk landscape of multi-hazards comprehensive risk management becomes indispensable to stabilize society and economy to be better prepared for new shocks to come. Risks cannot be tackled separately and we need comprehensive approaches ranging from prevention to pre-arranged financing and ultimately to recovery as the Zimbabwe case explains in this newsletter. It also requires collaboration between different stakeholders and it helps linking systems as Sri Lanka’s example shows below. 

With a comprehensive risk management system, the negative consequences of climate change and disasters can be met with an anticipatory instead of a reactive approach. Financial support can flow much quicker to the concerned population – especially the poor and vulnerable – when emergency response is in place before a disaster hits. And comprehensive risk management can do much more as risks are anticipated and dealt with from a holistic point of view. It starts with options for risk prevention and preparedness measures – now on the rise through the debate on “green recovery” - going to immediate relief responses as well as recovery and reconstruction in the aftermath of a disaster. To explore more on the topic, our High-Level Consultative Group (HLCG) Co-Chair Dr. Maria Flachsbarth goes into more details in our interview. Several other contributions from our members are linked to this topic and provide exciting cases from the ground. 

In addition, since our last issue in March, we have seen further growth in our membership, our first virtual Program Alliance meeting on concrete country activities and fruitful discussions in our first gender webinar that we conducted in collaboration with World Food Programme’s FARM-D, among many other exciting activities. We would also like to thank you, our dear members, for your valuable feedback from the newsletter survey which will be incorporated step-by-step in the next newsletter editions.

We wish you happy reading and stay healthy!

 



IN FOCUS: COMREHENSIVE CLIMATE AND DISASTER RISK MANAGEMENT

Comprehensive Climate and Diaster Risk Management - an interview with Dr. Maria Flachsbarth, Parliamentary State Secretary, Federal Ministry for Economic Cooperation and Development of Germany

As Co-Chair of the InsuResilience High-Level Consultative Group, Dr. Maria Flachsbarth shares her view on comprehensive climate and disaster risk management. She underlines the substantial need for such a holistic approach and how the Covid-19 pandemic exacerbates this need. She also explains how the InsuResilience Global Partnership can support in the expansion of comprehensive risk management.

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Comprehensive Risk Management to Inform Decision-Making and Action for Resilience

For a cost-effective response to more frequent and intense extreme weather events, Comprehensive Risk Management (CRM) can support countries to build resilience against negative climate change impacts and disasters. It integrates adaptation, disaster risk reduction, and disaster risk management. As such, it is both, a conceptual lens for identifying and planning activities, as well as an integrated set of actions that improves resilience. The Munich Climate Insurance Initiative (MCII) describes the approach in detail.

Read more


World Food Programme's experience with Comprehensive Climate Risk Management in Zimbabwe

As vulnerable communities are exposed to a wide range of climate-related risks, a comprehensive climate risk management and financing strategy should combine approaches to 1) reduce, 2) absorb and 3) transfer impacts occurring at different risk levels and time frames. The World Food Programme utilizes three different climate risk finance tools that link to each of the three risk management categories.

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Integrating Climate Risk Management into Sri Lanka's Nationally Determined Contributions

Sylcan Trust - a non-profit organization registered in Sri Lanka - has analysed how a comprehensive risk management strategy was integrated into Sri Lanka’s Nationally Determined Contributions (NDCs). The NDCs are commitments under the Paris Agreement that relate to climate change mitigation, adaptation, and loss and damage. As the example of Sri Lanka shows, a comprehensive risk management strategy can be integrated into NDCs, and the current 2020 NDC review process offers an important opportunity to strengthen and add to this integration.

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LATEST NEWS FROM THE GLOBAL PARTNERSHIP

Germany helps African countries maintain drought insurance in view of COVID-19 

In response to the COVID-19 crisis, the German government is covering premium payments of around EUR 19 million for drought insurance for African Risk Capacity (ARC). This will reliably insure up to 20 million poor people who are particularly vulnerable to crises from drought damage in the coming agricultural season.

Video message by Dr. Ngozi Okonjo-Iweala, the Chairperson of ARC Agency
Video message by Dr. Maria Flachsbarth, Parliamentary State Secretary, German Federal Ministry for Economic Cooperation and Development

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LIVE TALK No. 01: Integrating Gender Responsive Strategies into Climate and Disaster Risk Finance and Insurance Solutions 

On 3rd June 2020, the InsuResilience Global Partnership in collaboration with FARM-D together with the International Fund for Agricultural Development (IFAD), hold a Live Talk with almost 140 participants on ‘Integrating Gender-responsive Strategies into Climate and Disaster Risk Finance and Insurance (CDRFI) Solutions’. The report provides you with all the details in case you missed it. You can already mark the 2nd September for the subsequent Live Talk going in-depth into gender-responsive strategies in your calendars.

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COVID-19 pandemic: 5 lessons learnt on integrating gender into climate risk insurance schemes 

Find out the 5 lessons and recommendations learnt from the impact on COVID-19 pandemic and the importance on including gender considerations in sovereign risk pools. This article serves as a reflection on how gender specific planning and early response can predict gender risks and provide more effective response when men, women and children are faced with climate and disaster shocks.

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InsuResilience Solutions Fund (ISF) Grant to improve resilience of micro-entrepreneurs and smallholder farmers in Colombia 

In Colombia, small-holder farmers and micro-entrepreneurs are at risk of income losses due to business interruptions caused by the impacts of climate change. To provide the necessary financial resources to bridge income losses and immediate liquidity needs in the aftermath of disasters, the ISF supports the development of an index-based insurance product for micro-entrepreneurs and smallholder farmers. A grant agreement was signed with the joint partnership of the Microinsurance Catastrophe Risk Organization (MiCRO) and SBS Colombia S.A.

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Guatemala & Belize: CCRIF Financially Supports Government with Pay-Outs of Parametric insurance after Extreme Rainfalls 

Extensive rainfalls challenged Guatemala for nine days and Belize for three days starting at the end of May. For a faster recovery from the negative consequences of this disaster, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) paid the Government of Guatemala approximately US$3.6 million and the Government of Belize received a pay-out of about US$200,000 under its excess rainfall parametric insurance policy. 

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Innovative solutions for inclusive insurance: the A2ii Inclusive Insurance Innovation Lab

The Inclusive Insurance Innovation Lab (iii-lab) is an international capacity-building programme where four countries' multi-stakeholder teams work on innovative solutions to advance the development of their insurance market. During the 18-month process, scheduled from January 2020 to June 2021, approximately 60 inclusive insurance leaders seek to answer the key question of the lab: "How can we develop our insurance markets?" All four country teams – Argentina, India, Morocco and Rwanda – are now continuing their learning journeys online.

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New publications

Nature-based Solutions in the context of risk finance: Resilience Benefits of Reefs to protect the most vulnerable 

The study explores to what extent reefs and reef restoration can provide concrete resilience benefits for the InsuResilience Target Group, i.e. the poor and vulnerable. Case studies were conducted for three Caribbean Island States: the Dominican Republic, Jamaica and Grenada. The study was conducted by The Nature Conservancy and University of California Santa Cruz in collaboration with the Secretariat of the InsuResilience Global Partnership. It is one of the results of the Partnership’s Working Group on Integrated Approaches.

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Munich Climate Insurance Initiative (MCII) Annual Report 2020 

MCII looks to find and promote effective and fair insurance-related solutions for the risks posed by climate change by bringing together experts from research institutes, the insurance sector, civil society and climate adaptation practice. Through the unique set-up as a non-profit think tank and incubator, it provides a forum to explore solutions in creating incentives and changing structures for risk reduction for people with no access to risk management. This particularly applies to the most vulnerable people in low-income regions.

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Digital Publication: Integrating Insurance into Climate Risk Management

The Munich Climate Insurance Initiative (MCII) and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) have developed an Integrated Climate Risk Management (ICRM) approach. MCII and GIZ identified the disaster risk management cycle, also known as the PPRR approach − prevent, prepare, respond and recover − as a valuable way to: 1) systematically analyse and pinpoint where insurance can add value, 2) provide an overview to public authorities/government officials of the status of international political momentum, and 3) find synergies between the practical activities and policy of DRM and climate change adaptation (CCA). To further elaborate on the ICRM approach, this toolbox has been developed to provide a series of specific questions to answer when government officials and other stakeholders consider the use of insurance as a CCA and DRM measure.

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Report on the Third InsuResilience Global Partnership Forum 2019

On December 9, 2019, the third InsuResilience Global Partnership Forum took place on the margins of COP25 in Madrid, Spain. The Forum focused on Climate and Disaster Risk Finance and Insurance Solutions in the Caribbean, Latin and Central American regions with exchanges from all over the globe. Over 150 representatives from G20, V20 and other countries, international organizations, civil society, the private sector and academia came together to discuss, evaluate and develop the adoption of holistic climate risk management solutions.

Read more


New Members to the Partnership

We welcome our 3 new members: Agritask, Axco and MicroInsurance Centre at Milliman

Upcoming Events

01 - 03 July 2020 London Climate Action Week 2020 (LCAW)
Online
04 - 05 July 2020 Post-Disaster Risk Finance Options & Instruments 2020
Budapest, Hungary
15th Sept. 2020 Meeting of InsuResilience High-Level Consultative Group
Online
21 - 27 Sept. 2020 Climate Week New York  Action Week
Online
29 Sept. - 01 Oct. 2020 Adaptation Futures
New Delhi, India
For more events check our website

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Email: secretariat@insuresilience.org

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Photo credits:
InsuResilience Secretariat/Ralf Ruehmeier, WFP, SlycanTrust, BMZ, FARM-D,Pixabay, InsuResilience Solutions Fund, Pixabay, A2ii

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