InsuResilience: “Vital Piece” to the Climate Change Solution

Cornelia Fulkrug-Weitzel, President of Bread for the World and
Chair of Act Alliance, during the
InsuResilience: The Climate Risk Insurance Initiative side event.

The G7 Initiative on Climate Risk Insurance aims to increase access to direct or indirect insurance coverage against the impacts of climate change for up to 400 million of the most vulnerable people in developing countries by 2020.

According to recent estimates, only about 100 million people in developing countries and emerging economies are currently covered by climate risk insurance.

From today's side event held at German Pavilion, which was high level meeting on this initiative here in Paris, different high level speakers were attended and gave their speech and statement concerning the G7 initiative in climate risk insurance.

With moderation of Mary Robinson, Special Envoy of the UN Secretary-General on Climate Change, who explained that the G7 launched InsuResilience earlier in 2015, calling it a “vital piece” to the climate change solution, although not a substitute for reducing climate risks. InsuResilience was presented by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Group of Seven (G7)

Underscoring the need to act “decisively and pre-emptively,” Thomas Silberhorn, Parliamentary State Secretary, BMZ, Germany, explained that InsuResilience aims to provide 400 million people in developing countries with access to insurance against extreme events by 2020. He announced a rapid action package to intensify support for vulnerable countries’ efforts to manage climate change related disaster risk and to build resilience, by strengthening existing insurance related facilities and initiatives.

Calling for supporting “solutions that exist” and scaling up “solutions that have worked,” Ngozi Okonjo-Iweala, Chair, Governing Board, African Risk Capacity (ARC), informed participants that the ARC was established by the African Union to help improve member States’ capacity to better plan, prepare and respond to extreme weather events and natural disasters.

Recalling the impact of recent cyclones in the Pacific region, Henry Puna, Prime Minister, Cook Islands, shared insights on Pacific States’ efforts to become self-reliant in disaster response, including through the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI).

Identifying disaster prevention and recovery as key priorities, Annick Girardin, Minister of State for Development and Francophonie, France, explained that the Climate Risk Early Warning Systems (CREWS) Initiative, launched at COP 21, aims to extend the cover of climate risk and information early warning systems in Least Developed Country (LDCs) and Small Island Developing States (SIDS).

Isaac Anthony, Chief Executive Officer, Caribbean Catastrophe Risk Insurance Facility (CCRIF), expressed satisfaction with pledges at COP 21 to support the expansion of CCRIF, adding that the facility was recently restructured.

Calling resilience insurance “one of the smartest approaches to development,” Justine Greening, Secretary of State for International Development, United Kingdom, emphasized the need to unlock the potential of the insurance business to deal with climate change, and to support and scale up InsuResilience.

Announcing Japan’s support to InsuResilience, Kiyoshi Kodera, Vice-President, Japan International Cooperation Agency (JICA), emphasized the need to put the disaster risk agenda in the adaptation agenda.

Remarking the substantial growth of the sector, Michel Liés, CEO, Swiss Re, emphasized the need to scale up investment, as well as the importance of governments taking control of their disaster risk management.

Underlining that COP 21 is giving unprecedented elevation and priority to adaptation and resilience, Todd Stern, US Special Envoy for Climate Change, reiterated the announcement of an additional US$ 30 million to assist in climate resilience initiatives and to help vulnerable countries to increase their climate resilience.

Emphasizing that broadening and deepening insurance markets is essential for climate resilience, Rachel Kyte, Vice President and Special Envoy for Climate Change, World Bank Group, called for scaling up climate disaster risk insurance, in order to extend access to those who do not have it.

Cornelia Füllkrug-Weitzel, President, Bread for the World and Chair, ACT Alliance, called for making sure that insurance policies are available to the poorest and most in need, and for anchoring loss and damage in the Paris agreement. In her last minutes she handed over symbolic Climate Risk Insurance Policy to G7.