We Are All At Risk: Collaborative Efforts to Invest in Resilience and Close the Financial Protection Gap

Welcome Remarks by H.E. Dr. Kwaku Afriyie, Minister of Environment, Science, Technology and Innovation, Ghana

Launch of the V20-led Sustainable Insurance Facility and Collaboration on Risk Analytics

EVENT BACKGROUND

Physical climate risk and the unequal distribution of risk understanding worldwide are barriers to development and macro-economic stability. While this concerns especially V20 economies, developed countries, such as the G20, are increasingly affected as well. The physical impacts of climate change not only threaten vulnerable population segments, but can lead to significant supply and demand side shocks. Sudden and slow climate impacts may damage capital stock, input factors, logistics and energy infrastructure as well as labor supply essential for national development, growth and domestic and international trade. Similarly, uncertainty from extreme weather events and lack of climate-smart insurance solutions, including for micro, small and medium-sized enterprises (MSMEs), may reduce investment, while consumption and savings may be hampered as households and businesses rebuild after natural hazards. The resulting output, price and export volatilities come with potentially harmful consequences for inflation rates, countries’ balance of trade and overall current account deficits.

As climate change is accelerating at an unprecedented speed in a highly interconnected world, we all are at risk. Now, more than ever, this calls for new forms of international collaboration to safeguard macro-fiscal stability and transform economies and finance towards low-carbon and climate resilient growth.

In the event “We Are All At Risk: Collaborative Efforts to Invest in Resilience and Close the Financial Protection Gap”, chaired by the V20 Presidency and held in partnership with the UNEP FI Principles for Sustainable Insurance (PSI), the Munich Climate Insurance Initiative (MCII), and the InsuResilience Global Partnership, representatives from the V20, the G20 and partner organizations will discuss their vision of a climate-resilient world and unveil collaborative solutions for achieving this goal. Building on the First V20 Climate Vulnerables’ Finance Summit in July 2021, announcements will include a fire side chat on the new, strategic partnership between the Insurance Development Forum (IDF) and the V20 to build a Global Risk Modelling Alliance (GRMA) and the launch of the V20-led Sustainable Insurance Facility.

The Sustainable Insurance Facility (SIF) is the new mechanism, developed under the leadership of the V20 and in collaboration with MCII and UNEP FI PSI, to enhance and accelerate the country-led development and uptake of climate-smart insurance solutions for MSMEs. As such, the SIF aims to stimulate the domestic and regional insurance industry and economy, and represents the first disaster risk finance mechanism globally which is led by climate vulnerable countries. Supported by the InsuResilience Global Partnership and Germany, the SIF is exemplary of the V20’s efforts to close the financial protection gap, which currently lies well above 90 per cent in climate vulnerable developing countries.

As MSMEs contribute up to 80 per cent of GDP and 90 per cent of employment in V20 economies, the SIF is hoped to set significant impulses for shifting the real economy towards more climate resilience and reaching the InsuResilience protection target of 500 million people by 2025. Concurrently, the IDF-V20 partnership in the context of the GRMA will seek to empower countries through open access to risk analytics bolstered by locally developed and owned data. As such, the GRMA is envisioned to enable countries to strengthen their strategic view of risk and direct large-scale public and private investment towards resilience, while safeguarding economic growth and fiscal stability.

In aiming to ensure long-lasting and intensified collaboration through these new implementation initiatives, this event brings together members of the V20 and G20 as well as partner organizations to forge a joint understanding of priorities, ambition and value perception in the context of risk and resilience. The outcomes of this discussion will work to bolster ambitious implementation and scope potential key components of additional and innovative cooperation amongst the V20, G20 and the private, public and third sectors until 2025 and beyond.

EVENT OBJECTIVES

1. Forge a joint understanding of priorities, ambition and value perception in the context of risk and resilience amongst members of the V20, G20 and partner organizations.
2. Manifest and mobilize further cooperation amongst members of the V20, the G7 and the G20.
3. Launch the implementation of the Sustainable Insurance Facility in the V20 Asia-Pacific Region, introduce the global country pipeline and showcase the strategic collaboration between the IDF and the V20.

EVENT AGENDA*

UK Time. Moderated by Butch Bacani, UNEP FI Principles for Sustainable Insurance

2:00 – 2:05

WELCOME REMARKS

• H.E. Dr. Kwaku Afriyie, Minister of Environment, Science, Technology and Innovation, Ghana

2:05 – 2:40

ROUNDTABLE DISCUSSION AMONGST MEMBERS OF THE V20 AND THE G20

In turn and in 5-minute statements, representatives will discuss their countries’ experience and key determinants of weather related impacts and outline their vision for climate resilience and the requirements in international cooperation.

• Sabiti Fred, National and Technical Advisor on Environment and Climate Change, Ministry of Finance and Economic Planning, Republic of Rwanda
• Vineil Narayan, Head of Climate Change and International Cooperation, Ministry of Economy, Republic of Fiji
• Paola Alvarez, Assistant Secretary for Sustainable Finance, Disaster Risk Finance and Special Projects, Department of Finance, Republic of the Philippines
• Leonardo Martínez-Díaz, Senior Director for Climate Finance, Office of the U.S. Special Presidential Envoy for Climate, Department of State, United States of America
• Jürgen Zattler, Director-General for International Development Policy, Ministry for Economic Cooperation and Development, Federal Republic of Germany

2:45 – 2:50

KEYNOTE

Risk analytics for cross-sectoral planning and multi-level investment in resilience and financial protection

• Amal Krishna Mandal, Joint Secretary, Economic Relations Division, Ministry of Finance of the People’s Republic of Bangladesh, V20 Presidency

2:50 – 3:00

FIRESIDE CHAT

Engaging in conversation with Butch Bacani, IDF leadership will respond to the keynote delivered by the V20 Presidency ad discuss the objectives of the collaboration between the Insurance Development Forum and the V20 in the context of the Global Risk Modelling Alliance and the Global Resilience Index.

• Ekhosuehi Iyahen, Secretary General, Insurance Development Forum (IDF)
• Nick Moody, Programme Manager of the IDF Risk Modelling Steering Group

3:00 – 3:05

KEYNOTE

Creating spillover effects for climate resilient and low carbon growth through country-led climate-smart insurance for cooperatives and micro, small and medium-sized enterprises.

• Paola Alvarez, Assistant Secretary for Sustainable Finance, Disaster Risk Finance and Special Projects, Department of Finance of the Republic of the Philippines

3:05 – 3:20

ANNOUNCEMENT

Launch of the V20-led Sustainable Insurance Facility (SIF) and its operations in the V20 Asia-Pac Region in the context of the InsuResilience Global Partnership.

• H.E. Brenson Wase, Minister of Finance, Banking and Postal Services of the Republic of the Marshall Islands
• Jürgen Zattler, Director-General for International Development Policy, Ministry of Economic Cooperation and Development of the Federal Republic of Germany
• Butch Bacani, Programme Lead, UNEP PSI
• Sara Jane Ahmed, V20 Finance Advisor, CVF/V20 Secretariat
• Viktoria Seifert, Manager Disaster Risk Finance & Policy, MCII

3:20 – 3:30

TOUR DE TABLE

Building climate-smart domestic and regional insurance markets for MSMEs: Perspectives on the V20-led Sustainable Insurance Facility

• Caesar Mwangi, Chief Executive Officer, ICEA LION Insurance Holdings
• Yussel De Kraa, Senior Client Manager and Strategy and Operations, MEA, Swiss Re

3:30 – 3:35

KEYNOTE SPEECH

Building climate-smart insurance markets: Collaboration between the Asia-Pacific Climate Finance Fund (ACliFF) and the SIF

• Xiaohong Yang, Chief Thematic Officer concurrently OIC Chief Climate Change and Disaster Risk Management Division, Asian Development Bank

3:35 – 4:00

ROUNDTABLE DISCUSSION

In turn and in 5-minute statements, representatives of G20 members and V20 partner organizations, will discuss their perspectives on the value of the SIF, complementary priorities and additional collaboration opportunities until 2025 and beyond.

• Rachel Turner, Director General for Economic Development and International, Foreign, Commonwealth and Development Office, United Kingdom of Great Britain and Northern Ireland
• Leonardo Martínez-Díaz, Senior Director for Climate Finance, Office of the U.S. Special Presidential Envoy for Climate, Department of State, United States of America
• Malvern Chirume, Chief Underwriting Officer, African Risk Capacity
• Annette Detken, Head of InsuResilience Solutions Fund Management
• Jerry Skees, Chief Strategy Officer and DirectorGlobal Parametrics

4:00 – 4:05

CLOSING REMARKS

• Amal Krishna Mandal, Joint Secretary, Economic Relations Division, Ministry of Finance of the People’s Republic of Bangladesh, V20 Presidency