In episode 15, we discuss how insurance can increase resilience to climate risk. Our two guests and their respective organizations cooperate to provide climate risk insurance for developing countries. Dr. Helke Waelde is a senior sector economist at the KfW Development Bank, and Dr. Daniela Zimmermann is senior manager for regulatory affairs at the reinsurance company Hannover Re.
In cooperation on climate risk solutions such as the Natural Disaster Fund (NDF), insurance policies are provided which lead to a quick payout to beneficiaries in developing countries in case of an extreme weather event. So-called parametric insurance solutions are geared towards providing quick liquidity when a pre-determined extreme weather event occurs. They thereby put the policyholders, for example governments of developing countries, in a position to provide quick relief to affected populations.
KfW Development Bank and Hannover Re also work jointly on policy briefs to inform discussions around the financial contributions of the Global North to address climate risk in developing countries.
· Natural Disaster Fund (NDF) Impact Report 2023
· The Insurance Development Forum
· The Global Shield against Climate Risks
· The Fund for Responding to Loss and Damage
Timestamps
On some podcast players, you should be able to jump to the section by clicking:
(01:34) – Helke and Daniela introduce themselves
(06:19) – Difference between an insurer and a reinsurer
(08:31) – The role of reinsurance in diversifying risk
(09:28) – KfW’s mandate as a development bank and the need to insure climate risk
(10:48) – The 3 tasks of KfW when it comes to climate risk
(11:38) – Providing fast liquidity to partner countries in the case of a climate event
(13:06) – The Natural Disaster Fund (NDF)
(13:35) – Explanation of parametric solutions
(14:25) – More details on the Natural Disaster Fund (NDF)
(17:09) – Working with financial inclusion providers
(19:02) – Role distribution between the partners involved in the NDF
(22:18) – Responsibility of the Northern Hemisphere towards developing countries
(23:53) – Attribution theory policy paper
(29:03) – What is needed to mobilize more private investment for climate finance
(32:42) – The importance of a stable and reliable legal and regulatory framework and access to cross-border reinsurance possibilities
Contact
For feedback on the show or to suggest guests for future episodes, contact us at scifi@esmt.org
