The document discusses the Insuresilience Initiative aimed at improving climate risk insurance for vulnerable populations, targeting 400 million insured people by 2020. It highlights various existing insurance schemes across Africa, the Pacific, and the Caribbean, along with innovative insurance models in India and Zambia. The document also emphasizes the importance of developing multi-stakeholder partnerships and improving regulatory frameworks to support inclusive insurance markets in Asia.

1. DEVELOPING MULTI-STAKEHOLDER PARTNERSHIPS
FOR FINANCING CLIMATE RISK PROTECTION
DR. ANTONIS MALAGARDIS, GIZ
Inter-ministerial technical workshop on valuation of
climate change impacts in Viet Nam
6-7 June, 2017
Hanoi Club Hotel

2. 1. The InsuResilience Initiative
2. InsuResilience Components
3. Insurance in the Risk Continuum
4. Direct and Indirect Insurance
5. Microinsurance response to NatCat

3. Insurance in the Risk
Continuum

4. Insurance in the Risk Continuum
Level of Risk
Prevention and
Risk Avoidance
(“Adaptation
measures”)
Risk Retention Risk Transfer
e.g. Insurance
Additional
Measures
NAP & Adaptation Policies

5. The InsuResilience Initiative

6. Map: Munich Re 2013
InsuResilience delivers!
Goal: additional 400 Mio. poor and vulnerable people are insured by 2020

7. Strengthening indirect
insurance facilities

8. Current programmes reach out to different regions in the world at
macro level
African Risk Capacity (ARC)
• Drought insurance for members of the AU in
combination with early warning systems and
contingency planning
• Currently expanding to new countries
• New insurance products to cover floods and
tropical cyclones under development
Pacific Catastrophe Risk Insurance
Facility (PCRAFI)
• Insurance scheme covering tropical cyclones
and earthquakes in Pacific Island Countries
(PICs)
• Founded by G7 partners GER, JAP, UK and
USA together with World Bank and PICs
Africa Pacific
Caribbean and Central American
Catastrophe Risk Insurance Facility
(CCRIF)
• Insurance scheme covering tropical cyclones
and earthquakes in Caribbean small island
states
• Currently expanding to Central America
• New insurance products to cover excess
rainfall and cyclones under development
Carri-
bean

9. Strengthening
direct insurance schemes

10. Activities of InsuResilience
Direct catastrophic insurance
coverage combined with
conditional cash transfer systems
for people living in rural areas
Develop scalable weather risk
insurance by using Indian MFIs
and/or brokers as a distribution
channel
Scaling weather index-based
insurance within a contract
farming business model for people
working in agriculture
Development of direct climate risk
insurance solutions based on
satellite-based technology for
selected Asian countries
Implementation of pilot schemes for direct climate risk insurance
Sambia
Indien
Paraguay

11. Main
activities
• Bundle product, i.e. NatCat cover, savings component, and basic health insurance
• Perils insured (intended): drought, flood, cyclone, and possibly earthquake
• Important features: not linked to a loan; cover against asset losses and income losses
Product
Selling
proposition
• Achieve and safeguard your life goals (e.g. house construction, education) while being protected
against short-term difficulties like illness and natural catastrophes
• Savings component serves customer life goals while basic health and NatCat insurance make
customer more resilient
• Predominantly very small business owners and labourers, and to some extent small famers
• Mix of customer profile might differ from region to region in India
• Customers were located in rural and urban areas
Customer
• Financial Inclusion Platform IFMR
• 100+ partner originators of IFMR Holdings
• In total, about 21 million customers are served by this network of partner originators
Sales
channel
• WRMS (Weather Risk Management Services Private Limited) – designs, negotiates, and places the
parametric index insurance cover in the insurance and reinsurance market
• Climate group of GIZ India (Sabine Preuss)
Key partners
• Convince interested primary insurers and Indian regulator about product concept
• Test bundle product in Tamil Nadu in Q3 2017
Next steps
InsuResilience GIZ projects – Focus on India

12. Main
activities
• Weather index insurance (WII) bundled with life (funeral costs) insurance and farming inputs
• Risks insured for cotton WII: drought conditions, late onset of rains, dry spells, excess rainfall
• Data: TAMSAT satellite data on a decadal basis
• Contract farming operator NWK AgriServices pre-finances premium upfront and recovers from the
farmers at the end of the season
• Premium is K30 ($3) for coverage of K300 ($30) for WII and K1,000 ($100) for funeral cover
• No subsidies paid by donor or government
Product
• Workshop on WII in mid-July with cotton contract farming operators
• Workshop on WII in mid-July with governmentNext steps
• Insurance should incentivize farmers to reduce side-selling and increase deliveries
• Replication of NWK insurance scheme with other cotton contract farming operators
• Scaling up of WII through government farmer input support programme (FISP)
Aim
• Product has been offered for the last four seasons
• 51,827 out of ~70,000 NWK contract farmers opted for insurance in the 2015/2016 season
• Over 2013-2016: 61,446 farmers insured. 27,610 farmers received payouts
• Another cotton ginner (Alliance Ginneries) has adopted the product
Results
• Sales Channel: NWK AgriServices contract farming operator
• Broker: Risk Shield Consultants Limited
• GIZ Zambia
Key
partners
InsuResilience GIZ projects – Focus on Zambia

13. Progress of micro insurance in
selected countries in Asia

14. Developing multi-stakeholder
partnership for financing climate risk
protection
Dr. Antonis Malagardis, GIZ
Inter-ministerial technical workshop on valuation of climate
change impacts in Vietnam
6-7 June 2017
Ha Noi

15. Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia) www.inclusiveinsuranceasia.com
Microinsurance works as an effective response
to ex-post natcat event

16. 16 Mio
people
affected
6,300 recorded
casualties
4.1 Mio
people
displaced
Calamity
claims:
98% of
total pay-
outs
Average
claims
pay-out
USD108
Claims
rejection
rate
4.4%
13.7% of casualties
had
Microinsurance
111,000
claims,
USD12 Mio
payouts
Source: Study of effectiveness of microinsurance service providers’ response to Typhoon Haiyan in the Philippines’, commissioned by GIZ-RFPI Asia and
Microinsurance Network, 2014
Key Results of Response after Typhoon Haiyan in Philippines

17. Source: GIZ RFPI Asia
A complex natcat environment needs a
comprehensive approach in identifying DRF
options for SMEs
Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia) www.inclusiveinsuranceasia.com

18. GIZ RFPI Asia (Regulatory Framework Promotion of Pro-poor
Insurance Markets in Asia ) is a regional program that supports Asian
insurance supervisory authorities to enhance the enabling conditions
for pro-poor insurance. Regional and global exchanges between
insurance supervisors are being promoted through training and
dialogue events. RFPI is funded by the German Federal Ministry for
Economic Cooperation and Development (BMZ).
www.inclusiveinsuranceasia.com
Mutual Exchange Forum on Inclusive Insurance (MEFIN)
is a Network of insurance regulatory authorities in Asia working for a peer-to-
peer exchange of knowledge and experiences with the insurance industry.
The Network implement programs that provide mutual benefit to the
members in advancing inclusive insurance solutions especially targeted for
the low income and the informal sectors.
www.mefin.org
Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia) www.inclusiveinsuranceasia.com

19. Thank you!
Get in touch with us:
Secretariat InsuResilience
c/o GIZ – Deutsche Gesellschaft für internationale Zusammenarbeit
Bonn, Germany
InsuResilience@giz.de