COP28 ‘recognised role of insurance in strengthening resilience and adaptation’

The Insurance Development Forum (IDF) said it witnessed a groundbreaking shift in the recognition of the role of insurance in strengthening resilience and adaptation at the 2023 United Nations Climate Change Conference of the Parties (COP28) negotiations in Dubai. But it said there were mixed outcomes for climate-vulnerable countries, the key stakeholder group in the IDF. “For the IDF, COP28 served as a pivotal moment, reflecting the organisation’s unwavering commitment to drive resilience and adaptation through leveraging insurance and its related risk management capabilities,” said the Forum. The IDF highlighted a number of key outcomes from COP28, including a new agreement for the operationalisation of the Loss and Damage Fund, supported by financial pledges of over $700m by different countries, to support vulnerable nations facing the worst of climate change impacts, and a new Climate Finance target agreement reached to draft a post-2025 finance target ahead of COP29. The IDF said: “For the first time we saw food, water, health and biodiversity explicitly included in the agenda, underlining the importance of reviewing the impact of climate change on these themes.” And finally, and most importantly, COP28 marked “a historic moment with an unprecedented reference to fossil fuels as a source for the climate change issues, and a reference to a just and equitable transition away from all fossil fuels emphasising the global commitment to sustainable energy sources, and introducing an explicit timeframe to achieve net zero,” said the IDF. Michel Liès, chairman, Zurich Insurance, and chair of the IDF, said: “COP28 was a crucial platform for the insurance industry, and the IDF played a central role in advocating for the role of insurance in addressing climate risks and building resilience for climate vulnerable countries. Through our focus on implementation in close collaboration with public sector partners, we have built an institution that can shape policy and facilitate further engagement in climate resilience and adaptation. We have become a trusted partner for the public sector to engage with the insurance industry and drive action, the result of which was clearly felt at COP28.” He continued: “As the focus turns to COP29 in 2024, we remain dedicated to impactful actions that protect, prevent, and provoke positive change. We remain committed to bringing in the insurance industry’s capabilities in risk awareness, reduction, prevention and mitigation to protect our people and planet.” Ekhosuehi Iyahen, secretary general, IDF, added: “The progress witnessed at COP28 and the active presence of the IDF and its members is a demonstration of our commitment to continuing to drive home the urgency of resilience and adaptation, as despite these positive developments there is also the sobering reality that broader financing for adaptation has declined. This should be of concern to all of us. It is therefore imperative that the IDF and its members continue to build on the progress being made, both in terms of policy engagement and practical implementation of programmes to ensure a reversal at the next COP. 2024 presents the opportunity to do more, do better, do faster, with an unrelenting focus on implementation.”

COP28 ‘recognised role of insurance in strengthening resilience and adaptation’

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