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Climate risk insurance

InsuResilience – a new partnership within the framework of the G20

Storm damage on the Caribbean island Dominica after Hurricane "Maria" in September 2017

During Germany's G20 Presidency, climate risk insurance was a prominent issue on the agenda of this group of major industrialised and emerging economies. One key goal of the Climate and Energy Action Plan adopted at the G20 summit in Hamburg in early July 2017 is to strengthen the resilience of the poorest and most vulnerable people. Measures through which this can be achieved include the further expansion of financial and insurance solutions for climate risks.

The G20 countries hence support the creation of a Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions, which is to build on the InsuResilience initiative. In order to attain the climate and development goals, governments will have to work more closely with other players, learn from each other, and better coordinate their actions.

The outcome of the G20 summit reflects the positive developments that have taken place worldwide in the field of climate risk insurance since the establishment of InsuResilience in 2015. More and more players have pledged support to the InsuResilience initiative over the past few months, including the G20 countries in their recent statement. The integration of international political agendas – the Paris Agreement, the 2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda and the Sendai Framework – has lent new momentum to climate risk insurance.

As part of the Partnership, the BMZ will increase its efforts to support better coverage against climate risks for poor people who are vulnerable to extreme weather events. To that end, all players' expertise and experience is to be combined under the umbrella of the Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions. This Partnership provides a broader basis for InsuResilience: beyond the InsuResilience target of giving an extra 400 million people protection, partners aim to strengthen countries' overall resilience and close the protection gap.

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