Meeting the Unmet Demand
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Transcript Meeting the Unmet Demand
Meeting the Unmet Demand
Insuring the Uninsurable
Climate Change and Insurance
Munich Re – GERMANWATCH
Briefing 2004
Arun Kashyap
Climate Change & CDM Adviser
UNDP
10 May 2004
Presentation Format
Underlying Principle
Possible Strategy &
Interventions
Why, What, How
Debt Swaps
Linking disaster assistance with
prevention/mitigation of adverse
impacts of disasters
Next Steps
Underlying Principle – Why?
Millennium Development Goal
Halve the proportion of people living in
extreme poverty by 2015
Water, Energy, Health, Agriculture
Biodiversity (WEHAB)
&
Climate Change - a cross cutting issue
Possible basis for provision of
insurance services
Hypotheses
Disasters contribute to persistent poverty
Reducing vulnerability is about risk
reduction and risk management
Sustainable livelihood implies reduced
vulnerabilities
Disasters reduction efforts make
economic and development sense
Insurance as a safety net mechanism
can contribute towards overall
economic development
Enhanced Vulnerability
Climate variability and change
significantly endanger livelihoods
Increase in the frequency and
intensity of extreme events
Natural disasters
Frequency and intensity of droughts
High human and economic costs
in Developing Countries
Focus of Interventions -What?
Reducing vulnerability to shocks
and stresses
Strengthening sustainable
livelihoods
Access to resources
Building Assets
Developing capabilities
Focus of Interventions –
How?
Adaptation (Risk management) interventions
must be integrated in to national
strategies for poverty eradication
Translating new and existing knowledge
into policy formulation and
implementation
Innovative and integrative approaches to
capacity development
Undertake Pilot Projects
Possible Interventions
Disaster Management Continuum
Priority
Disaster Reduction
(Prevention, Mitigation and Preparedness)
Follow up Disaster Response
(Relief, Rehabilitation, Reconstruction)
Debt for Adaptation Swaps
(MDG)
Debt Swaps
Public Private Engagement
National Host Governments (Sustainable
development priorities
Bilateral (debt write off and terms of
reference)
Private Sector (Insurance possibilities –
premiums nature of contracts)
Multilateral organizations (Due Diligence)
Civil Society (Due Diligence)
Learning by doing
Disaster Reduction
Public Private Engagement
National Host Governments (sustainable
development priorities)
Bilateral (Resource advancement from
disaster mitigation budget)
Fulfilling Monterey commitment
Engaging the Private Sector (Insurance possibilities)
Linking local action to global mandates
Transparency, Monitoring and
Evaluation
Premise for Insurance
Community/province/state level rather than
household
Guaranteed premium payment
Diversification of risk
Partial Coverage of extreme events/natural
disasters
Lessons from developed countries
New Insurance products
Commercial debt insurance
Next Steps
Strengthen Insurance & Sustainable
Development linkage
Relationship: risk management,
insurance and adaptive capacity
Foster dialogue: Re/insurance industry,
governments and civil society
Seek partnerships
Next Steps: Barbados+10
Risk Management, Adaptation
and Insurance for SIDS
Comprehensive paper
Side Event
MoU
Pilot Projects
Selection of Pilot Countries
LDC/Highly Indebted
Presence of basic infrastructure
Insurance industry
Enabling policy framework
Political commitment
Private sector/bilateral interest
Direct Foreign Investment/Commercial
Debt
Replicability