Report 14th International Microinsurance Conference 2018
6
Pre-conference workshop: Innovate for climate risk insurance
Hosted by GIZ, MCII and the ILO
7 — Participants of the workshop playing a game to develop the best risk management strategy for a fictional hotel business on an island.
With that in mind, the workshop also sought to explore different supporting tools that can better help decisionmakers and planners implement CRI in their national strategies, and possible funding sources for CRI application and approaches. For better adaptation and improved resilience The workshop used several interactive formats to explain the concepts and receive feedback from attendees – which are summarised below:
A game was played by the attendees to highlight the need to manage the risk of a disaster by means of an integrated transfer solution such as insurance. The focus was on how its use can make communities more resilient, ensuring that natural hazards never turn into disasters. Such an approach has several parts – that include prevention, addressing residual risk, preparedness response and recovery (see Figure 1). The game focused on investments, risk reduction and insurance, and various measures that individuals and governments can take for improving resilience, including • risk analysis • risk reduction • pre-disaster financing • emergency management • providing relief • post-disaster financing • rehabilitation and improved building-back
Figure 1 Integrated climate risk insurance approach for building resilience
Retentio
n tio en
Pr e
Risk analysis
Building back better
co Re
y ver
Rehabilitation
n&
Tr a
n er sf
v
8 — Left to right: Mathias Range, Head of Projects/Senior Advisor, GIZ; Antonis Malagardis, Program Director, GIZ-RFPI, Philippines
Risk reduction measures
Resilience
Post-disaster financing
Pre-disaster financing
Emergency management
d ne ss
Over the last 10 years, increasing recognition of climate risk insurance (CRI) and its added value within an Integrated Climate Risk Management (ICRM) approach has reflected growing acceptance of the role of insurance. But insurance is no panacea! Its contribution towards risk reduction and resilience depends on the quality of the insurance tool and whether it has been designed to respond efficiently to the needs of the ultimate beneficiaries. Besides, evidence gathered thus far is mainly from the
Box 1
par e
The workshop focused on sharing good practices seen under the ACRI+ project of GIZ and MCII, and was designed to spur on promising ideas to help advance the application of climate risk insurance (CRI) in different sectors, such as renewable energy, cities, and MSME parks.
agricultural sector, microinsurance schemes in particular. More work is needed on synergies with other risk-financing tools, critical infrastructure, and its benefits to other phases in the risk management continuum.
Pre
By Pranav Prashad
Relief
7
R esp o ns
e
Source: Range, Mathias. Presentation “Importance of climate risk management for better adaptation and improved resilience.” 14th International Microinsurance Conference 2018
8
