Reinsurers told to join climate resilience innovation race

Broker Marsh has said it is to partner with the Atlantic Council’s Arsht- Rockefeller Foundation Resilience Centre (Arsht-Rock), to mobilise the insurance sector in support of the UN’s Race to Resilience.

The two organisations have said the aim is to create “innovative disaster risk reduction initiatives” that move communities from a reliance on recovery to focusing on resilience.

“Through this initiative, we are showcasing the world’s most innovative and impactful insurance-based climate adaptation projects and applying a simple and clear framework for industry engagement,” said Dr. Mahmoud Mohieldin, UN climate change high-level champion for Egypt, COP27. “Our aim is to scale amongst others, the (re)insurance sector’s impact on climate adaptation and facilitate engagement with projects in need of support.”

Julian Enoizi, global head of public sector risk solutions, Guy Carpenter: “We are proud to be engaged in this work today, partnering with government and insurers to build public-private partnerships that help communities build resilience to climate change. Through effective financial investments and targeted on-the-ground interventions, the global insurance industry can help increase our resilience to a hotter, more volatile planet.”

The campaign features 17 projects which Marsh said are redefining the role of insurance in global disaster planning.

“Marsh McLennan’s businesses and Arsht-Rock are directly involved in several of these projects, including a pilot for a community-based catastrophe insurance model for vulnerable populations in New York City, a blended capital funding structure in Santiago, Chile, and integrated disaster risk reduction and microinsurance programs in Mexico and India,” it added.

“We know that a dollar invested in disaster preparation and prevention saves up to eleven dollars in response funding. Ironically, 88 percent of all disaster relief comes after the catastrophe,” said Kathy Baughman McLeod, senior vice president and director, Adrienne Arsht-Rockefeller Resilience Centre. “Imagine the human pain and economic loss that we could prevent if we could reverse this model.”

This initiative will launch at COP 27 today as part of the High-Level Champions and Marrakech Partnership programme on resilience.

Following the conference, the UN Climate Change High-Level Champions, the Adrienne Arsht-Rockefeller Foundation Resilience Centre, Marsh McLennan and other supporters will meet with (re)insurers globally to seek their participation in scaling these projects and engage on potential approaches to accelerate the sector’s impact on these issues.

“We are proud to be engaged in this work today, partnering with government and insurers to build public-private partnerships that help communities build resilience to climate change. Through effective financial investments and targeted on-the-ground interventions, the global insurance industry can help increase our resilience to a hotter, more volatile planet.”

Julian Enoizi, Guy Carpenter

SHARE: