Munich Climate Insurance Initiative (MCII)

Transcription

1 Bonn, Munich Climate Insurance Initiative (MCII) Webinar: Climate Risk Insurance and Relevance to RegionsAdapt Kehinde Balogun

2 OUTLINE Who we are? Team members General overview What is MCII approach? Policy engagement Running Projects Where do we meet? RegionAdapt adaptation recommendations Working together 2

3 What is MCII? Non-profit charitable association; leading innovation lab on climate change & insurance. Launched in 2005 based on UNFCCC (Article 4), Kyoto Protocol (Article 3): Insurance plays a role in adaptation to climate change! Mission: Provide a forum for insurance-related expertise on climate change impacts and explore ways how to develop sustainable approaches for risk- and poverty reduction in vulnerable countries. Governance: MCII Executive Board + MCII Membership + Project Office hosted at UNU- EHS in Bonn. 12/4/2017 3

4 MCII Mission and Members United Nations / Multilateral Organizations MCII Project Office Insurers What makes MCII unique? Our network covers a large variety of expertise which allows us to develop comprehensive solutions. Think Tanks Foundations, Enablers MCII Mission: Innovative Protection for the Vulnerable Against the Impacts of Climate Change Consultants Research & Academia NGOs Regional Risk Insurance Pools 12/4/2017 4

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6 MCII Project Office Team Soenke Kreft, Executive Director Kehinde Balogun, DRR expert Raul Fernandez, Project Associate Sabrina Zwick, Finance Manager Laura Schaefer, Project Manager Michael Zissener Initiative Coordinator Rachael Hansen, Team Manager Dirk Kohler, Insurance Advisor Maxime Souvignet, Project Coordinator Shaily Vyas, Insurance expert 6

7 MCII at Policy processes

8 Frameworks: UNFCCC Loss & Damage debates Loss & Damage: Article 8 of the Paris Agreement Establishes Clearing House for climate risk transfer and Task force for climate related displacement to agree on international guidance Warsaw Mechanisms : Work on comprehensive risk management & resilience; Forum on loss & damage finance in Manila 5/6 September 2016 COP22: National - Invitation to assign national risk officers for L&D COP23: 5 year work-plan of the WIM and operationalization of Clearing House for climate risk transfer 8

9 Frameworks: Sendai Framework Sendai Priorities: Understanding disaster risks; Strengthening disaster risk governance; Investing in resilience; Enhancing disaster preparedness and to Build Back Better in recovery, rehabilitation and reconstruction. Financial risk management included across the priorities. ACRI+ Organising team of the UNISDR Global Platform Special Session on Risk Transfer and Insurance EXPERT MEETING Integrating Disaster Risk Reduction into National Adaptation Plans 9

10 Frameworks: From G7 to G20 G-7 Insuresilience Objective to insure 400 million people against climatic shocks until 2020 Established by G7 Partner countries at Elmau summit in 2015 G7 Pledges (so far): > USD 500million Rapid Action Package: Scaling up of ARC, CCRIF, PCRAFI A G-20 Partnership on climate risk insurance in July 2017Call by V-20 towards G-20 Potential outcome: Establishment of global partnership to enable countries to improve their financial climate risk management 10

11 COP-23: CRI and MCII Download the paper: 12/4/2017

12 MCII: Climate Risk Adaptation and Insurance in the Caribbean (CRAIC)

13 Climate Risk Adaptation and Insurance in the Caribbean Duration: Funding Agency: Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) Partners: CCRIF, DHI, ILO, Munich Re Countries: Jamaica, Saint Lucia, Grenada, Belize, Trinidad & Tobago Objective: To address climate change, adaptation and vulnerability by promoting weather-index based insurance as a risk management instrument in the Caribbean. 12/4/

14 Climate Risk Adaptation and Insurance in the Caribbean Livelihood Protection Policy (LPP) 12/4/

15 MCII: Advancing Climate Risk Insurance Plus (ACRI+)

16 Advancing Climate Risk Insurance plus (ACRI+) is breaking new ground and working on: Innovative insurance solutions which are integrated into the individual phases of climate risk management Comprehensive risk analysis of extreme weather events Long-term solutions for urban development, industrial zones, renewable energy, and water infrastructure Making concepts and implementation experiences available to the international climate dialogue for replication and scaling-up purposes

17 ACRI+: Advancing Disaster Risk Management by Including Insurance Prevent This phase comprises all the measures that help prevent or minimize possible damage from an event. Recover After a natural extreme event hits, infrastructure and other parts of society must be rebuilt, so that people can resume their livelihoods as quickly as possi ble. Respond This phase comprises all emergency measures aimed at saving human lives in the event of a natural disaster. building back better recovery ex-post financing risk analysis RESILIENCE response prevention ex-ante financing prepare d- ness Residual risk Residual risk can be transferred to third parties using financial instruments such as insurance. Prepare Preparedness contains a complex set of activities such as setting up early warning systems, developing contingency plans, organising various activities such as stockpiling of equipment, and coordination and training as cross-cutting issues.

18 ACRI+: Knowledge management + International dialogue ILO WB FAO Oxfam UNFCCC Partner Countries MCII GIZ ADB WFP Sendai Process Additional Countries ICRM Concepts Knowledge Management International Dialoge ICMR (Integrated Climate Risk Management with a focus on Transfer) lessons learnt, best practises and other publications in at least 3 sectors are comprehensively available, offering reliable solutions for selected context /countries ICMR concepts and implementation experience made available to the international debate (i.e. delegate meetings, side events, bilateral talks, international events) on climate risk management for replication and scaling-up purposes

19 Morocco: Integrated Climate Risk Management for MSMEs ACRI+ promotes the ICRM approach in order to increase resilience Going beyond adaptation measures, ACRI+ demonstrates the potential for insurance for MSMEs. Smart-mix approach: promoting integrated climate risk management and risk transfer solutions In certain cases, climate insurance can help address residual risk Ait Melloul industrial zone (Agadir, Morocco) 19

20 MCII: Supporting G7 InsuResilience

21 G7 Initiative on Climate Insurance (InsuResilience) Consortium: G7, BMZ (lead), GIZ, KfW, MCII Overall Goal: Insure 400 million people against climatic shocks until MCII s Contribution: Technical & Normative Advice on Implementation Management of important stakeholder groups to support the acceptance of the initiative. Harmonizing the initiative with the UNFCCC and other relevant policy processes. Formulation of technical parameters for success of the initiative (i.e. pro-poor focus, M&E).

22 Pro-poor principles for climate risk insurance Needs based solutions Client value Affordability Accessibility Participation Sustainability Enabling environments

23 Impact Evaluation: Project Objectives InsuResilience Secretariat commisions MCII the development of a M&E system to: 1. Develop an adequate and feasible framework to measure resilience impacts in the frame of climate insurance schemes 2. Test and propose an integrated (qualitative/quantitative & objective/subjective) framework for the evaluation of climate risk insurance on the resilience of most vulnerable populations that can be replicated in different settings by practitioners in the field of climate risk insurance 3. Test the developed framework in at least one case study in search for case study site 12/4/

24 Collaboration: MCII and RegionsAdapt 24

25 MCII + RegionAdapt Carry out vulnerability assessments and to identify adaptation measures. Develop a strategic approach to adaptation and prioritize adaptation actions. Take concrete action on adaptation in at least one of the key priority areas identified through RegionsAdapt. Foster citizen and community engagement in your region to develop and implement sustainable adaptation actions. Build lasting relationships with your regional industries to learn why adaptation matters to them. Engage your national government in dialogue to support the implementation of integrated National Adaptation Plans and policies. Integrate climate change and adaptation as a cross-cutting topic in your sectoral policies. Exchange and learn from other regions worldwide. Mobilize finance for climate change adaptation from public and private sources. Report data on your adaptation actions on an annual basis and track your progress. 25

26 Technical Partnership Resilience and DRR Index-based insurance (also referred to as parametric insurance); Implementing the Priorities for Action of the Sendai Framework; Monitoring and Alert Systems; Land use planning and urban planning as a means for risk reduction. Economic Impacts and Opportunities Economic evaluation of adaptation measures (including methodologies to define baselines); Private insurance applied to the climate risks of specific economic sectors; Adaptation plans for business sectors. Relevance Munich Climate Insurance Initiative to RegionsAdapt Initiative

27 Munich Climate Insurance Initiative (MCII) Follow Us on By Kehinde Balogun