Home Framework SMI task force unveils framework to build disaster resilience | New

SMI task force unveils framework to build disaster resilience | New

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The framework highlights how insurers and investors can provide a blended finance solution for sovereigns that addresses both adaptation investing to build resilience and transfer of residual risk.

The study highlights the potential for multilateral development banks, international aid donors and the private sector to “join forces to create large-scale, replicable, effective and high-impact physical, economic and humanitarian financing solutions. and risk mitigation solutions for climate-vulnerable developing countries ”.

To pilot the framework, the SMI Insurance task force said it was working with agencies in Kenya to develop ways to mobilize resources from the private sector to support more resilient agriculture across the country.

The initiatives under consideration include a crop or livestock insurance mechanism linked to an impact investment bond, in which the government uses the principal to fund resilience initiatives among smallholders.

Bruce Carnegie-Brown, Chairman of the SMI Insurance Task Force and Lloyd’s, said: “The global insurance industry has a crucial role to play alongside private finance, international donors and sovereign agencies to meet the needs. developing countries.

“This framework creates a vital opportunity for low- and middle-income countries to strengthen their resilience to increasingly frequent and severe weather risks, as well as to foster sustainable societal and economic recovery from disasters. “


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