Risk Transfer and Insurance for Resilience

While the intensity and impact of disasters continue to rise, disaster insurance penetration remains low, especially for those locations with the highest exposure. Between 1980 and 2015, only 2 per cent of losses caused by weather-related natural catastrophes in lower middle and low-income countries were covered by insurance.

The 2030 Agenda for Sustainable Development, the Sendai Framework and the Paris Agreement identify the contribution risk transfer and insurance can make to increasing resilience and reducing the financial impacts of disaster, when integrated in disaster risk management strategies. Public and private entities, including risk modellers and global associations, can work together to explore and address innovative solutions to the challenge of increasing societal resilience.

The working session will examine the optimization and extension of insurance and related risk management capabilities to build resilience and protection for all societies. It will explore the political economy of disaster risk transfer and insurance mechanisms, and how they can incentivize disaster risk-sensitive public and private planning and investment. Collaborations between public and private sectors will also be discussed.

Videos

Risk Transfer and Insurance for Resilience