Advancing Climate Risk Insurance Plus

In the past, when there was an extreme weather event, the main questions on people’s minds were: What can be done to ensure a quick response (= respond) as well as a fast recovery (= recover)? Due to the increase in both the frequency and intensity of extreme weather events, the question of what can be done to minimize damage (= prevent) as well as what preparation is needed to keep these weather hazards from becoming a disaster (= prepare) have become increasingly important. Even when these measures are taken, however, some risk remains.

Climate risk insurance, can play a central role in protecting against these residual risks. It holds the potential to incentivize people to start adapting to climate change and develop strategies to reduce their own risk. By being prudent and planning with a long-term perspective in mind, the costs of insurance premiums can go down, thus easing the financial burden on the policyholders.

Innovative insurance solutions, which are integrated into the individual phases of climate risk management (respond, recover, prevent, prepare, and residual risk), help strengthen people’s resilience before an extreme weather event hits. By investing in (re-)construction measures to protect the land and property, a household can keep future damage to a minimum and will enable themselves to recover more quickly after a flood disaster.

ACRIplus is breaking new ground: Together with local authorities and private sector partners, new insurance solutions that are linked to all of the phases of the disaster risk management cycle are being developed. Based on a comprehensive risk analysis of extreme weather events and their direct and indirect effects on people, the environment, and the economy, new measures are also being devised. These are designed to have a positive impact on all of the phases in disaster risk management – an integrated, effective approach which uses the full potential of each phase. Through this approach, we create the opportunity to prepare long-term for climate change and its serious consequences. This project works towards long-term solutions for urban development, industrial zones, renewable energy, and water infrastructure.

The second key focus of ACRIplus is to gather the experiences of different international organizations and channel them to the international dialogue on climate change. Relevant, comparable information is provided in partnership with PreventionWeb, the Global Index Insurance Facility (GIIF), and the UNISDR PreventionWeb platform. The information is freely accessible to everyone. This creates transparency and provides the basis for further analyses and response to key guiding questions. ACRIplus actively brings these experiences to the international climate dialogue by participating in conferences, climate negotiations, and talking to experts from the public, private, and political sectors.

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Deutche Welle Feature | Morocco: Insurance against extreme weather

New Video: The Integrated Approach to Disaster Risk Management

First-Ever Climate Risk Insurance Online Database Launched

On the International Day for Disaster Risk Reduction, 13 October 2017, the first-ever online database on climate risk insurance is being launched by the Global Index Insurance Facility (GIIF), the Munich Climate Insurance Initiative (MCII), and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the German Government. The Climate Insurance database shares the experiences of numerous international organizations in the field of risk transfer and insurance solutions in the context of climate risk management and disseminates information on good practices and innovative solutions. 

Visit the database Opens external link in new windowhere

Latest News

ACRI+ organises joint workshop with ILO Impact Insurance Facility at 14th International Microinsurance Conference in Lusaka Opens internal link in current windowRead more

Deutsche Welle produced a video about our work in Morocco! Opens internal link in current windowRead more

Read an interview with Dr. Maxime Souvignet (ACRI+ Project Manager) “New ways for climate insurance”: how we can quantify the cost and benefits of risk transfer measures to facilitate decision making. Opens internal link in current windowRead more

Read our newest publication - The Role of Insurance in Integrated Disaster and Climate Risk Management: Evidence and Lessons Learned Initiates file downloadRead more

ACRI+ kicks off its activities in Morocco: Maxime Souvignet (MCII) and Daniela Bohl (GIZ) launched a Kick-Off Workshop with various actors from public and private sector to explore the potential of climate risk insurance for small and medium-sized enterprises. Opens internal link in current windowread more

MCII and GIZ invited in March 2017 to the Workshop 'Development of a Toolbox for Weather Risk Insurance for the Agricultural Sector'. A Toolbox for Weather Risk Insurance will be developed to better equip governments and other stakeholders in managing climate risks with the help of insurance. In order to do so, different phases of the Disaster Management Cycle (prevention, preparedness, response and recovery) were examined from an insurance perspective. The goal of this workshop was to share the approach with international experts, to identify areas for the development of a Toolbox and for testing in the agricultural sector in three developing countries. See Initiates file downloadhere the Agenda of the Workshop.

A panel discussion organized by MCII and GIZ welcomed Professor Peter Hoppe from Munich Re, Camilo Navarro Ceadri from Ministry of Agriculture in Chile, and Dr. Swenja Surminski from the London School of Economics to an evening panel discussion on 'The Silver Lining of Natural Disasters: Can we turn floods, droughts, and typhoons into an opportunity with climate risk insurance?'. The panel discussion brought together policy-makers, German parliamentarians, academics, and business partners to discuss the challenges and opportunities that exist in risk transfer solutions like insurance. See the Flyer of this event Initiates file downloadhere. See highlights of the panel discussion in the video below

The international dialogue on Climate Risk Insurance continues: In the week of 21 - 24 March 2017, the fifth meeting of the Executive Committee of the Warsaw International Mechanism (WIM) took place in Bonn. With the establishment of the WIM for Loss and Damage, UNFCCC is addressing the risk of loss and damage associated with the negative impacts of climate change and the need for comprehensive climate risk management and resilience-building. The meeting emphasized the role of comprehensive climate risk management approaches and decided to establish a clearing house for risk transfer that serves as a repository for information on insurance and risk transfer. This tool, when established, will serve as a pool with guidelines based on good practices on climate risk insurance strategies. Opens external link in new windowread more

Economics of Climate Adaptation (ECA) - Guidebook for Practitioners

There is a growing consensus that climate change impacts should be considered in the development of adaptation strategies by decision makers at all levels. This requires identifying cost-efficient adaptation measures, resulting from a structured risk management approach. The Economics of Climate Adaptation (ECA) approach offers a unique contribution, which combines risk assessment, adaptation measures and risk transfer. Its results allow a flexible identification of cost-effective climate adaptation measures for a variety of projects and sectors.  Recently, KfW decided to implement two pilot studies in Bangladesh and El Salvador using the ECA methodology. The main objectives were to support decision makers in developing their adaptation strategy and to develop a climate adaptation measures investment portfolio. Following the evaluation of these two pilot studies, the need to develop a document for practitioners has arisen.  The ECA Guidebook aims at filling this gap while complementing the already existing ECA documentation and tools. This Guidebook is tailored for practitioners of developing projects, which promote resilience in developing countries. It aims also at 1) exploring whether ECA methodology is appropriate to the project’s goals and 2) offering step-by-step guidance while using the ECA methodology. Initiates file downloadDOWNLOAD HERE