An international initiative that aims to provide insurance to 400 million poor and vulnerable people by 2020 has announced additional funding and signed up new partners.
InsuResilience, a G7-led initiative launched in 2015, has joined forces with the Ethiopian Chair of the V20 – 49 of the most vulnerable countries to climate change – the UK and the World Bank, to relaunch the partnership during the United Nations (UN) climate conference in Bonn.
More than 30 partners have committed to contribute to the partnership.
Thomas Silberhorn, Germany's parliamentary state secretary to the federal minister for economic cooperation and development, announced support of $125 million to this new initiative, as part of the relaunch.
Speaking at Environmental Finance's Insurance and Climate Risk Conference in London yesterday, Butch Bacani, programme leader of UN environment's principles for sustainable insurance initiative, said he expects the initiative to attract $550 million, and "there could be more coming".
He explained that the scope of this initiative is broad and does not only include governments: "This is not going to work simply with governments alone. The idea is to engage different actors and initiatives, insurance companies directly as well.
"The idea is how to make this ambition a reality through global partnership, involving the private sector and civil society."
The partnership will support data and risk analysis, technical assistance and capacity-building. Innovative finance and insurance solutions, tailored to the specific needs and challenges of poor members of the population in particular, are to be developed and implemented.
The partnership is also intended to support and enhance the future efforts of governments to prepare meet climate change risks, linking these preparations to the use of risk finance and insurance.
The most recent example of support under the initiative came in September, when more than $55 million was given to 10 Caribbean countries after hurricanes Irma and Maria hit the islands. The money was used to supply medicines and build emergency shelters.
"Instead of only reacting to catastrophes, we want to shift to planning, preparing and protecting," Silberhorn said.
Frank Bainimarama, prime minister of Fiji and president of COP23, said: "The global partnership is a practical response to the needs of those who suffer loss because of climate change. It is a means of preparing for a more resilient form of development for those who will have to adapt to the great challenge of climate change."
Patricia Espinosa, executive secretary of the UN climate change secretariat, said: "This new and higher-ambition initiative represents one shining example of what can be delivered when progressive governments, civil society and the private sector join hands with creativity and determination to provide solutions."
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