Howden, the international insurance broker, plans to drive forward the use of innovative financing models to help plug the estimated $20 billion disaster relief funding gap by bringing the issue to the fore at the World Climate Summit.
As an official partner of the Summit, Howden Group CEO, David Howden, will present the case for creating sustainable business models that provide more funding, more quickly and efficiently, and that can be applied to all kinds of disaster relief projects.
In his keynote address, Howden will argue that, by adapting existing models to respond to emerging challenges, the insurance industry has the power to create markets that drive climate action and increase resilience in an increasingly volatile world.
“We’re seeing a dramatic increase in the frequency and severity of climate-triggered disasters, and traditional forms of disaster relief financing simply can’t keep pace,” said Charlie Langdale, Head of Climate Risk and Resilience at Howden. “We believe the answer to plugging the funding gap lies in creating scalable, sustainable markets for funding disaster response by unlocking private capital for social good.”
David Howden also commented: “There is a lot of focus on the role of financial institutions in the climate resilience conversation, but comparatively little on the insurance industry. Insurance tends to come into focus in two main areas: picking up the pieces after a disaster has happened, and the debate around whether insurers should continue to underwrite business for carbon intensive industries.
“What’s missing in this conversation, and what our industry must get better at promoting, is the role insurance has to play in helping society to build resilience against climate risk. Whether that’s by removing the financial barriers to sustainable energy projects; leveraging our data and risk modelling capabilities to help clients, industries and countries to better address emerging risks; or by transforming the way disaster relief is funded.”
