Intentions of the UK partnership with the World Bank Group and Germany to establish a Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions, has been praised by the Insurance Development Forum (IDF), the United Nations Development Programme (UNDP), and global re/insurers.
Expanding on the announcement that the UK government will establish a new London Centre for Global Disaster Protection, Lord Bates, Minister of State at the UK Department for International Development (DFID), speaking at the IDF Session at the International Insurance Society (IIS) Global Forum in London, said the UK partnership with the World Bank Group and Germany would work to develop a Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions.
The move to address the growing disaster coverage gap by UK and German leaders has been praised by the international risk transfer community, and also the IDF and the UNDP.
The UK has said previously that it will commit £30 million to the development of the Centre for Global Disaster Protection, while Germany has said that it will provide €20 million as a first step to a linked World Bank Multi-Donor Trust Fund.
Dr. Gerd Müller, Federal Minister for Economic Cooperation and Development (BMZ), commented; “Climate risk insurance helps – in a fast and cost-efficient manner. Together with the United Kingdom, the World Bank Group and other partners, Germany is working on creating the Global Partnership on Climate and Disaster Risk Finance and Insurance Solutions, which the G20 leaders have welcomed at the Hamburg Summit.”
During the IIS event in London, Ingrid Hoven, Director General for Global issues, sector policies and programmes at BMZ, revealed the design of a €15 million InsuResilience Solutions Fund to support public and private sector collaboration on climate risk solutions in emerging regions.
Joaquim Levy, World Bank Group’s Managing Director, Chief Financial Officer (CFO), and Co-Chair of the IDF, said; “With climate posing an ever-greater risk, we can use insurance and risk financing solutions to strengthen developing countries’ financial resilience to a wide range of threats. By using well-designed financial instruments, we can ease the impact of disasters on the most vulnerable societies, reducing the cost and damage to development progress.”
The recent announcements by DFID and BMZ support the development of a Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions, and the commitment of the G7 InsuResilience scheme to increase insurance penetration in emerging and developing regions.
Rowan Douglas, Chair of the Implementation Committee of the IDF, added; “The IDF looks forward to working with the newly formed Centre of Global Disaster Protection, and the German efforts by BMZ such as the InsuResilience Solutions Fund, to develop and implement plans to deliver the services necessary to proactively prepare for and insure against disasters – a far more effective approach than rushing aid to the scene after devastation occurs.”
