Munich Climate Insurance Initiative (MCII)

The purpose of MCII is promotion of public-private protection and insurance solutions for people worldwide affected by weather-related catastrophes.

Date Published
12 Nov 2013
Expected Start Date
01 Jun 2008
Expected End Date
31 Dec 2026
Project Types
Capacity Development Research
Project Status

The Munich Climate Insurance Initiative (MCII) was launched by Munich Re in April 2005 in response to the growing realisation that insurance-related solutions can play a role in adaptation to climate change, as advocated in the Framework Convention and the Kyoto Protocol. To achieve this, MCII brings together insurers, experts on climate change and adaptation, NGOs, and policy researcher’s intent on finding solutions to the risks posed by climate change. MCII provides a forum and gathering point for insurance-related expertise on climate change impact issues. Insurance solutions, as proposed by MCII, should serve the interests of the most vulnerable people, communities and countries and be therefore guided by the following principles: 1) Intelligent mix: Prevention and insurance should be closely linked with an ex ante climate risk management strategy that places priority on preventing human and economic losses. 2) Economic efficiency and risk based premiums: By pricing risk, insurance can provide an important price signal to incentivize risk reducing behaviour. 3) Solidarity and responsibility: The loss burden can be far more severe in vulnerable developing countries and, within these countries, among poor households and communities. Since these communities have contributed little to climate change, it is incumbent on countries with high per capita emissions of greenhouse gases to take a share of the responsibility. 4) Subsidiarity: Decisions should be made as close as possible to their point of application and where the need is manifest. Protection and insurance mechanisms promoted by MCII are intended to promote a socially, ecologically and economically sustainable development process, above all, in the regions particularly affected by global climate change, particularly in developing countries. Goals: The initiative’s purpose is the promotion of the requisite framework of public-private protection and insurance solutions for the fast-growing number of people worldwide affected by weather-related catastrophes, especially in developing countries. The association’s focus is primarily on solutions for people who have no access to insurance cover at present. MCII strives to fulfill four objectives: A: Develop insurance-related solutions to help manage the impacts of climate change, seeking to combine the resources and expertise of the public and private sectors. B: Conduct and support pilot projects for the application of insurance-related solutions in partnerships and through existing organisations and programmes. Identify success stories and disseminate information on the factors that are necessary to design and implement effective climate insurance-related mechanisms. These activities will focus on developing countries but at the same time will involve evaluating insurance solutions that have been used in developed countries. C: Promote insurance-related approaches in cooperation with other organizations and initiatives within existing frameworks such as the United Nations system, international financial institutions, international donors, and the private sector. D: Identify and promote loss reduction measures in connection with climate-related events. Learn more, visit: