At the 24th UN climate conference (COP24; 2–14 December 2018, Katowice, Poland), the UNU Institute for Environment and Human Security (UNU-EHS) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH launched their InsuRisk Assessment Report 2018.
In 2017, commissioned by the InsuResilience Secretariat, UNU-EHS and Social Impact Partners developed a tool that provides information on countries’ vulnerability towards climate and disaster risks and their readiness to accommodate insurance solutions. The resulting “Risk and Readiness for Insurance Solutions Assessment Tool” allows comparisons between countries and clusters them accordingly.
The information can help governments, insurers, and implementing partners to identify countries that are most suitable for the introduction of climate risk insurance solutions.
“In contrast to other risk indices currently available, our tool provides specific information also on the question of how well-positioned countries are to successfully incorporate insurance solutions into their risk reduction efforts — for example, in terms of the reliability of their institutions and the risk awareness as well as financial literacy among the population”, said the report’s scientific co-lead, Dr Matthias Garschagen of UNU-EHS.
“The most challenged countries are those, in which a high level of risk meets with a low readiness to accommodate insurance solutions, such as Burundi, Afghanistan, Rwanda, or Eritrea”, added co-lead Dr Michael Hagenlocher of UNU-EHS.
The 2018 report includes an update on the original prototype with the most recent data, updated methodology, and a larger number of countries in the analysis. The tool was designed and is being further developed with the aim of making a contribution to the InsuResilience goal — i.e., to enable access to climate risk insurance for an additional 400 million poor and vulnerable people by 2020.