Germany commits further €21m to help vulnerable countries boost climate change risk management

The German government said today it will spend an extra €21m to better protect poor and vulnerable countries from the adverse effects of climate change, and support growing local risk and resilience analytics. Part of the goal is to help the close the insurance protection gap in places where risk transfer options are lacking. The news from Germany comes just ahead of the Sixth Assessment Report from the Intergovernmental Panel on Climate Change (IPCC), which will be published later today. It will reiterate the urgent need for climate change adaptation and protection measures around the world. The German funds will be split, with €11m going towards the establishment of the Global Risk Modelling Alliance (GRMA) and €10m for premium financing in vulnerable countries. Germany’s partners on these programmes are the V20, an alliance of finance ministers from 48 climate-vulnerable countries, and the Insurance Development Forum (IDF), a public-private partnership with the insurance industry. The GRMA is a joint public-private technical assistance programme with three main components: A public-good fund to help countries fill critical risk model and data gaps A technical assistance team comprised of risk practitioners combining both public and private sector experience Open-source risk modelling technology, tools and standards developed by the insurance industry and optimised for public sector use. The GRMA will support participating countries to build, share and further develop locally-driven views of climate and disaster risk, across ministries of finance, asset-owning ministries, disaster risk management authorities and research institutions. The plan is ensure local ownership of this analysis, so sovereigns and cities can better develop and report strategic risk profiles, initiate climate-resilient investments and transfer residual risk to international markets. The financial contribution from Germany is a key element of its ‘InsuResilience Vision 2025’ strategy, which aims to boost financial protection for 500 million people by 2025. Svenja Schulze, German minister for economic cooperation and development, said: “Climate change adaptation is a top priority for Germany. The upcoming IPCC report sheds light on the urgent need to act. Under our G7 presidency we will continue to significantly enhance the efforts of all nations to build resilience in the face of the climate emergency. Building on the success of the InsuResilience Global Partnership, we are delighted to increase our financial commitment for climate change adaptation and initiate the Global Risk Modelling Alliance programme.” Denis Duverne, chairman of the IDF steering committee, added: “Too often, climate-vulnerable countries with the least resources are having to make hard decisions in adaptation and resilience based on a narrow, remotely generated view of their risk. By combining open technology, cross-sector risk expertise and funding for models and data, and most of all a joint, practical approach with countries, the GRMA can accelerate access to risk understanding where it is needed the most.” AHM Mustafa Kamal, minister of finance in Bangladesh and V20 chair, said insurance coverage is often severely lacking where climate change impacts the most. “We strongly welcome the Global Risk Modelling Alliance because investing in better and more accessible data and analysis will help to close the protection gap. The most vulnerable desperately need international support to make financial protection against climate risks more affordable and accessible. We appreciate the German government’s generosity of committing €21m to better protect poor and vulnerable countries, and hope for continuous international support for minimising climate vulnerability,” added Kamal.

Germany commits further €21m to help vulnerable countries boost climate change risk management

Want to read this article?

Read Next

Marsh tracks slowdown in global Q1 rate hikes

Markel names head of terrorism in London

Insurers defend Nord Stream’s €400m lawsuit as act of war

Allstate posts nat cat loss of $343m for March

UAE flash flood losses manageable as insurers adapt to changing weather

Marsh tracks slowdown in global Q1 rate hikes

Markel names head of terrorism in London

Insurers defend Nord Stream’s €400m lawsuit as act of war

Allstate posts nat cat loss of $343m for March

UAE flash flood losses manageable as insurers adapt to changing weather

Want to read this article?

Read Next

Marsh tracks slowdown in global Q1 rate hikes

Markel names head of terrorism in London

Insurers defend Nord Stream’s €400m lawsuit as act of war

Allstate posts nat cat loss of $343m for March

UAE flash flood losses manageable as insurers adapt to changing weather

Related Articles