London, 6 September
2010 - Four initiatives representing
more than 100 leading international insurance
companies are today calling on governments
worldwide to harness risk management techniques
and insurance expertise to help the developing
world adapt to climate change.
The initiatives will
present a statement aimed at world leaders
and negotiators of the United Nations Framework
Convention on Climate Change (UNFCCC) at
a press conference to be held in Lloyd's
of London.
The statement will highlight
how governments can unlock significant potential
to increase the protection and reduce the
vulnerability of developing world populations
and economies from natural disasters through
better risk management and by enabling insurance-type
approaches.
The four groups launching
the statement today, on the eve of an international,
low-carbon investment conference convened
by the UK government, are ClimateWise, The
Geneva Association, the Munich Climate Insurance
Initiative (MCII) and the United Nations
Environment Programme Finance Initiative
(UNEP FI).
The recent floods in
Pakistan, China and Niger are a timely reminder
that the world must adapt to become more
resilient to the long-lasting and significant
changes in climatic conditions being experienced
across the world. These changes are likely
to have the most damaging impacts on the
developing world, where even small economic
losses can have long-term effects on development,
and where human health is generally less
robust.
In the past three decades,
direct global economic losses for all types
of natural catastrophes have averaged US$90
billion per year, with 78% of those natural
catastrophes being weather-related. Meanwhile,
85% of deaths associated with all natural
catastrophes over that timescale have occurred
in developing countries (Munich Re, 2010).
There is enormous potential
to be derived from a partnership-based approach
to tackling the climatic risks faced by
people and governments around the world.
Indeed, several communities affected by
climate change are already benefiting from
projects that improve risk management and
feature insurance elements.
Over 4500 Mongolian
herders covered by a public-private index-insurance
scheme are currently receiving indemnity
payments totaling around US$1.4 million
for cattle mortality losses caused by a
particularly harsh winter.
And in September 2008,
the Caribbean Catastrophe Risk Insurance
Facility (CCRIF) - a public-private partnership
- paid US$6.3 million to the Turks and Caicos
Islands after Grand Turk was hit by Hurricane
Ike.
The statement launched
today underscores the view that risk management
mechanisms are currently falling considerably
short of their potential in delivering resilience
benefits to the developing world. The insurance
initiatives are therefore calling on governments
to:
Implement risk reduction
measures already agreed at the 2005 World
Conference on Disaster Reduction
Provide a suitable enabling
environment, including economic and regulatory
frameworks, for risk management and insurance
to function at all levels of society
Invest in reliable risk
exposure data and making it freely available
to the public
Act on lessons learned
about the benefits of regional public-private
partnerships and micro-insurance schemes
which reduce losses for climatic risks
Today's statement calls
on governments to formally recognise the
potential role for insurance in the United
Nations climate change negotiations, and
to open channels for dialogue at a national
level so that progress can be made immediately.
There is now an opportunity,
given the current international negotiations
under the UNFCCC, to firmly anchor insurance
expertise and components into any global
adaptation mechanism under the international
climate-change regime.
A number of realistic
proposals have already been submitted, the
priority now is for governments to reach
agreement so that they can be implemented.
Andrew Maskrey of the
United Nations International Strategy for
Disaster Reduction, will open today's launch
with a keynote address. After the press
conference, a high-level panel discussion
led by senior insurance, government and
NGO figures will explore immediate next
steps. A copy of the statement will be available
on the websites of the initiatives listed
below at 2pm.
Andrew Torrance, Chairman
of ClimateWise and CEO of Allianz Insurance,
commented,
"With climatic
disasters inflicting more and more damage,
the increasing reliance of governments on
foreign aid alone is unsustainable. As the
global climate continues to warm, we have
to find new ways to protect people and economies
from the impacts of extreme weather, particularly
those who are most vulnerable. Insurers
have much to offer, but this potential can
only be leveraged through a partnership
approach with governments. With over 100
of the world's leading insurers standing
ready to engage, the opportunity for partnership
building is immense."
Patrick M. Liedtke,
Secretary General and Managing Director
of The Geneva Association said, "The
core principle of risk management and loss
prevention is that in most cases 'prevention
is better than cure'. If governments, especially
in the developing world, can implement robust
risk management and loss reduction measures
then a significant amount of both human
suffering and economic loss could be prevented."
Professor Peter Hoeppe,
Head of GeoRisks at Munich Re and Chairman
of MCII commented, "Developing countries
are most vulnerable to climate extremes,
even though they contribute little to greenhouse
gases. These are precisely the areas which
have the fewest tools to manage and transfer
the risks they face and they often lack
the financial resources to adapt to climate
change."
Achim Steiner, UN Under-Secretary-General
and UNEP Executive Director said, "The
insurance industry is making it clear: it
has the expertise and the creative solutions
to assist vulnerable countries and communities
manage the risks of climate change. But
it is a partnership that works both ways.
Governments need to act on this opportunity
and harness this reservoir of risk assessment
skills. Secondly, the insurance industry
needs a fighting chance of success. In other
words governments need to back big cuts
in emissions in line with the scientific
reality".
ENDS
Notes to Editors
Four leading insurance
and climate change initiatives, whose combined
membership includes more than 100 of the
world's leading insurers across Africa,
Asia, Europe, North and South America and
Oceania, have brought together their members'
expertise to present this statement.
The initiatives are
ClimateWise, The Geneva Association, the
Munich Climate Insurance Initiative (MCII)
and leading insurance companies within the
United Nations Environment Programme Finance
Initiative (UNEP FI):
ClimateWise is the global
collaboration of leading insurers focused
on reducing the risks of climate change.
Launched in 2007 by HRH The Prince of Wales,
and facilitated by the University of Cambridge
Programme for Sustainability Leadership,
ClimateWise brings together over 40 international
members from Europe, North America, Asia
and Southern Africa all of whom abide by
the ClimateWise Principles.
www.climatewise.org.uk
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