The InsuResilience Global Partnership – A multi stakeholder initiative to protect the poor and vulnerable against disasters
Katowice, 09-10. December 2018 – During the UN Climate Change Conference 2018 (COP24) in Katowice, Poland, high-level representatives and experts from V20 and G20 countries, international organizations, private sector and academia convened under the InsuResilience Global Partnership to advance financial protection for poor and vulnerable people and countries.
Brenson S. Wase, Minister of Finance of the Republic of the Marshall Islands, noted: “The Partnership aims to protect the beating heart of our countries – our people. Going forward, we are thus committed to the Partnership and to supporting the successful implementation of disaster risk financing instruments, including insurance, to protect our people and create the long-term growth we need to survive and thrive.”
Dr Maria Flachsbarth, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development, Germany, underlined the importance of the InsuResilience Global Partnership: “Climate disasters throw back 26 million people into poverty every year. The Partnership is the central global initiative to increase the financial resilience of poor and vulnerable people and break the vicious circle of disasters and poverty.”
Launched at COP23 in Bonn, Germany, last year, the InsuResilience Global Partnership aims to increase resilience of poor and vulnerable people through climate and disaster risk finance and insurance. The Partnership has 61 member organizations and brings together all key stakeholders in the field. At COP24, the European Union and the International Development Finance Club (IDFC), an association of 24 national and regional development banks from all over the world, announced their joining of the Partnership.
The InsuResilience Global Partnership has been a game changer:
- The Partnership and its members currently support 25 schemes and programmes in 78 countries.
- In October 2018, the governments of Germany and the United Kingdom, in partnership with the World Bank, announced a US$145 million Global Risk Financing Facility (GRiF). The GRiF aims to scale up and strengthen existing risk financing initiatives and to act as catalyst to pilot new and innovative approaches including risk pools, premium finance and contingent investment loans.
- In July, the InsuResilience Global Partnership teamed up with the Insurance Development Forum (IDF), bringing together more than 300 leaders from the insurance industry. The IDF guaranteed high-level support from industry for the InsuResilience Global Partnership.
Climate risk insurance has proven it works: Disbursements from insurance solutions for poor and vulnerable people under the InsuResilience Global Partnership and its members are now amounting to 200 million US Dollars. In June 2018, at the G7 Summit in Charlevoix, the Government of Canada pledged 100 million Canadian Dollars to support the expansion of Climate Risk Insurance coverage in climate-vulnerable countries.
At COP24, the steering body of the Partnership convened for the first time – the High-Level Consultative Group (HLCG). 18 high-level representatives from all relevant stakeholder groups of the Partnership are represented in the HLCG. It is co-chaired by Brenson S. Wase, Minister of Finance of the Republic of the Marshall Islands, and Dr. Maria Flachsbarth, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development of Germany (BMZ).
HLCG members agreed to work on a bold vision for the Partnership to scale up pre-arranged finance to assist poor and vulnerable people affected by climate change.
One day after the HLCG meeting, 200 experts discussed at the annual InsuResilience Global Partnership Forum how to implement these systems. Concrete country cases included some of the most vulnerable countries worldwide: Pakistan, Colombia, Sri Lanka, Zambia and West African countries.
Denis Duverne, Chairman of the Board of Directors of AXA and Chair of the IDF Steering Committee: “The IDF is pleased to be part of the InsuResilience Global Partnership and is very much aligned with the bold vision it presents. Structuring successful public private partnerships will be key in addressing the already devastating impacts being felt in many emerging economies and by the most vulnerable. The Global Partnership presents an opportunity for collaborative action to urgently drive the development of much needed solutions.”
Laura Tuck, Vice President, Sustainable Development, of the World Bank: “The InsuResilience Global Partnership can catalyze a global shift toward risk financing, including insurance, for climate and disaster shocks. As the World Bank Group, we will build on the Partnership’s momentum so that timely finance reaches those that need it most when shocks or disasters strike”, said Laura Tuck,.
Vitumbiko Chinoko, Advocacy and Partnerships Coordinator at CARE International, emphasized: “Many poor people, especially women and girls, are already suffering from the impacts of the climate crisis. CARE sees the InsuResilience Global Partnership (IGP) as an important innovation complementing efforts by Governments and community organizations. CARE brings into the partnership its experiences in supporting affected people and empowering women in shaping effective and comprehensive finance tools for resilience building.”
The High Level Consultative Group and the Forum paved the way towards another exciting year for the Partnership: in 2019, the Partnership aims at significantly increasing implementation of risk finance and insurance solutions. The Partnership can provide core contributions to the upcoming UN Secretary General’s 2019 Climate and Sustainable Development Summits.