David Howden, Chief Executive of insurance intermediary group Howden, has called for leaders in the global investment, humanitarian and philanthropic communities to help close the gap in disaster relief funding, stating the use of private capital as essential to the industry’s success at providing sufficient relief for future disasters.
His comments were delivered during a keynote address at the World Climate Summit panel: Investing & Insuring for Resilience – Managing Risks & Redirecting Capital into Resilience Enhancing Investments.
Howden noted how the funding gap has risen from $1 billion 20 years ago to $20 billion today.
He concluded that public funds are not enough to tackle the rising frequency and severity of disasters globally and explained how Insurance solutions such as catastrophe bonds could be the bridge between private capital and the humanitarian projects that need it.
“The real power of insurance lies not only in its underwriting and risk modelling capabilities, but its ability to attract and mobilise capital,” said Howden.
The CEO estimates that if just 3% of global pension funds’ assets under management were redirected into insurance-based ESG investments, this would equate to $1.5 trillion of capital for social good.
