MCII helps shape the Kickoff Conference to launch the G7 Climate Risk Insurance Initaitive (InsuResilience)

The frequency and intensity of extreme weather events is set to increase and developing and emerging economies are among the ones to bear most of the consequences. While the reduction of greenhouse gas emission stays the first priority in mitigating impacts of climate change for the international community, innovative and comprehensive climate risk management holds the best promise for increasing the resilience of effected countries and people. The most effective risk reduction measures cannot eliminate a residual part of the risk that should be transferred to the (inter)national (re)insurance market.

To address this global inadequacy of not appropriately insured states and individuals, the G7 agreed on a global Initiative on Climate Risk insurance. The Initiative aims to stimulate the creation of effective climate risk insurance markets, the specific goal being to significantly increase the number of people in low- and middle-income countries with direct climate risk insurance cover supported financially by the G7.

In the context of the German G7 Presidency, the specific goals shall be discussed in Berlin on 7 May with two major objectives.

  1. The conference is to provide a platform to present key parameters of the Initiative, to discuss specific technical areas and formulate recommendations for the further design of the Initiative.
  2. The conference is to stimulate political commitment, as well as partnerships and alliances that help advance the G7 Initiative.

 

In order to cover the political and the technical level of climate change adaptation, the conference will be divided into mainly two parts, (1) a High-Level Forum, (2) an Expert Forum.

The Expert Forum:

The Expert Forum is to give an opportunity to those who have first-hand expertise in the field of climate risk management and gathers about 170 experts from relevant institutions and regions.

The objectives of the expert forum are as follows:

  • to discuss priority topics that are key for the planning and implementation of the Initiative
  • to identify existing structures and initiatives on risk transfer the G7-Initiative can ally with
  • to formulate recommendations regarding concrete steps that help to further develop and sharpen the Initiative
  • to broaden support for the Initiative among key experts on Climate Risk Management

The three working groups will be dedicated to the following topics:

Working Group 1: Direct climate risk insurance – experiences, innovative approaches, perspectives and regional scope for the establishment of sustainable insurance markets to directly cover risks of individual vulnerable households, small and medium enterprises and groups of enterprises. This group hosts the following table groups:

  • Lowering supply barriers for climate risk insurance
  • Stimulating demand
  • Creating an enabling framework
  • Look at the global level

 

Working Group 2: Indirect climate risk insurance – experiences, innovative approaches, perspectives and regional scope for sub-national, national and regional level insurance schemes to cover sovereign risks and their effectiveness in reaching the most vulnerable. This group hosts the following table groups:

  • Getting the political acceptance of governments
  • Ensuring that pay-outs reach the vulnerable
  • Increasing the success of climate risk insurance through climate adaptation
  • Identifying regional insurance demand and promising approaches

 

Working Group 3: The global level: embedding climate risk insurance into the wider context of resilience and sustainable development – synergies between climate risk insurance and other instruments of risk finance and risk management to enhance resilience of societies; the role of international public and private sector actors; linkages to UNFCCC, SFDRR and the Post2015 Agenda for Sustainable Development. This group hosts the following table groups:

  • Linkages of the G7 CRII to international policy processes and frameworks
  • The CRII as part of comprehensive climate risk management and finance for resilience
  • Aligning the perspectives and expectations of international public & private sector actors with the needs of the vulnerable