A VISION FOR DEVELOPMENT INSURERS

Throughout 2024 the Centre for Disaster Protection is convening a High-Level Panel to articulate a clear and compelling vision and operational roadmap for development insurers.

As the climate crisis unfolds, the consequences of climate change induced disasters will become more frequent and severe and the way the international crisis financing system continues to pay for and respond to climate - and disaster related risks for vulnerable people and countries - remains flawed, inadequate, discretionary, and highly unpredictable.

Climate finance negotiations on the politically fraught issue of loss and damage acknowledge the scope to strengthen the contribution of existing arrangements responding to the adverse effects of climate change and of pre-arranged financial protection as a potential tool as part of a mosaic of solutions of funding arrangements. But it is critical to acknowledge the limits to the scope and effectiveness of pre-arranged financing, particularly insurance, for addressing climate loss and damage.

In this context, also considering the evolving climate and development finance reform landscape, and the pressing need to increase resources available to climate - and disaster vulnerable countries, the Centre has identified a significant opportunity to elevate arrangements for an existing group of important players in the international crisis financing system, the regional risk pools, as well as to explore other existing instruments offered by multilateral development banks and other development partners.