SIP developed a methodology to compare countries’ vulnerability towards climate and disaster risks and their readiness for insurance solutions. This will enable access to climate risk insurance for an additional 400 million poor and vulnerable people by 2020.
The InsuResilience Secretariat commissioned the United Nations University’s Institute for Environment and Human Security (UNU-EHS) and Social Impact Partners to develop a comprehensive and objective concept and methodology that provides transparent and comparable information on countries’ vulnerability towards climate and disaster risks and their readiness for insurance solutions. The tool is a prototype, giving orientation for prioritizing action and tailoring support for potential InsuResilience partner countries. It was designed with a view to the InsuResilience goal and target group, i.e. to enable access to climate risk insurance for an additional 400 million poor and vulnerable people by 2020. For further information on the InsuResilience initiative please have a look at www.insuresilience.org.
Munich Re and Social Impact partners have been supporting the Global Fund to Fight AIDS, Tuberculosis and Malaria since 2014 with the development of a comprehensive risk assessment and recommendations for associated risk reduction measures. In 2018 the continuation of the cooperation was signed for another three years with SIP being the main counterpart for the Global Fund.
The goal for the current project phase is to establish a more secure value chain for the Global Fund partnership, resulting in greater impact against epidemics. It also aims at analyzing operational risks of the Global Fund, which will enable partners to respond quickly to disasters or losses. Social Impact Partners will support the Global Fund with the implementation and evaluation of those tools for an effective mitigation and transfer of risks e.g. through the development of insurance guidelines. It is the goal to develop a multidimensional concept to increase resilience against risk by 2020, and ultimately provide more resources to fight AIDS, tuberculosis and malaria.
Funding for humanitarian aid often comes in too late. So when a natural disaster strikes, it often has enormous and devastating consequences for the most vulnerable parts of the population. To reduce the impacts of disasters, scientific forecasts and risk data are a useful tool to prepare for what is coming. There are many actions that can be taken in the window between a forecast and a disaster, which can make the disaster much less devastating for communities in vulnerable areas.
Forecast-based Financing (FbF) is a strategy that enables anticipatory humanitarian action by releasing a pool of funds triggered by scientific forecasts of extreme weather events, such as droughts or floods. It makes it possible to act before the disaster strikes, and thus avoid suffering and losses by reducing risks and strengthening the resilience of the vulnerable communities.
A key element of FbF is that the allocation of financial resources is agreed in advance, together with the specific forecast threshold that triggers the release of those resources for the implementation of early actions. It is a joint effort by several partners, initiated by The International Federation of Red Cross and Red Crescent Societies (IFRC), the German Red Cross (GRC), the Red Cross Climate Centre, the World Food Program (WFP). SIP supports the Forecast-based Financing programme with access to risk data and expert knowledge on various types of natural catastrophes.