The impact of climate change is clearly visible, especially in developing and emerging countries. What are the chances to insure poor people worldwide against the aftermath of extreme weather phenomena or sustained drought?
Following the success of the G7 initiative for climate risk insurance “InsuResilience“, initiated in 2015 in Elmau by Germany, through which 400 million additional poor and vulnerable people should get climate risk insurance until 2020, the G20 at the Hamburg summit in 2017 welcomed the establishment of the Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions.
After the establishment of the “InsuResiliece Global Partnernship“ at the world climate conference of 2017 in Bonn, the German Federal Ministry for Economic Cooperation and Development (BMZ) authorised Kreditanstalt für Wiederaufbau (KfW) to facilitate the establishment of the InsuResilience Solutions Fund (ISF) as a cornerstone of the initiative, providing 15 million Euros in budgetary funds for the endowment.
The goal of InsuResilience Solutions Fund is to better cover those affected against climate and natural disasters. On the one hand, it offers demand-oriented and data based climate risk research and advisory on the ground. It enables responsible local partners to better assess and manage the potential threats of specific climate risks.
On the other hand, based on further studies, ISF fosters the development and the establishment of target specific climate risk insurances for households and businesses as well as for local and governmental infrastructures. These measures are being executed in the context of superior climate risk management strategies, respectively so called Nationally Determined Contributions, that also include measures for the adjustment to corresponding climate risks.