In response to the calls from the Insurance Development Forum (IDF) and the V20 Group of Ministers of Finance from 48 climate-vulnerable countries, the German Federal Ministry for Economic Cooperation and Development (BMZ) is committing €21 million to help further protect poor and vulnerable countries against the adverse effects of climate change.
The contribution will also go towards supporting and growing local capability in risk and resilience analytics, and is a key element of the German government’s InsuResilience Vision 2025 strategy, which aims to catalyse financial protection for 500 million people by 2025.
Svenja Schulze, Minister for Economic Cooperation and Development, said: “Climate Change Adaptation is a top priority for Germany.
“The upcoming IPCC Report sheds light on the urgent need to act.
“Under our G7 presidency we will continue to significantly enhance the efforts of all nations to build resilience in the face of the climate emergency.
“Building on the success of the InsuResilience Global Partnership, we are delighted to increase our financial commitment for climate change adaptation and initiate the Global Risk Modelling Alliance programme.”
AHM Mustafa Kamal, Minister of Finance, Bangladesh, V20 Chair, said: “The IPCC report is a stark reminder that we have to take action to safeguard economies and communities from the climate crisis. Insurance and other forms of financial protection are a vital safeguard measure. But insurance coverage is the least where climate impacts the most.
“We therefore strongly welcome the Global Risk Modelling Alliance (GRMA) because investing in better and more accessible data and analysis will help to close the protection gap. The most vulnerable desperately need international support to make financial protection against climate risks more affordable and accessible.
“We appreciate the German Government’s generosity of committing 21 million euros to better protect poor and vulnerable countries and hope for continuous international support for minimising climate vulnerability.”
Denis Duverne, Chairman of the IDF Steering Committee, added: “Too often, climate-vulnerable countries with the least resources are having to make hard decisions in adaptation and resilience based on a narrow, remotely generated view of their risk.
“By combining open technology, cross-sector risk expertise and funding for models and data, and most of all a joint, practical approach with countries, the GRMA can accelerate access to risk understanding where it is needed the most.”
