Managing climate risks and guarding against financial loss

People making their way through a flooded street

Flooded street. Picture: UN Photo/Logan Abassi

In the run-up to the climate negotiations in Warsaw, the Munich Climate Insurance Initiative (MCII) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have published a report on integrated management of climate risks including climate risk insurance. The report was drafted within the framework of the International Climate Initiative (IKI). It asks how innovative insurance solutions can help us to adjust to and manage the consequences of climate change and build climate risk resilience. For instance, insurance can help farmers transfer part of the financial risk they encounter as a result of more frequent storms or droughts to a third party.

The report presents various examples at local, national and international level and looks at both public and private-sector approaches. These include solutions for insuring against loss of harvest in Ghana and against storm damage in the Caribbean.

This information will support political decision makers in finding the best way of integrating similar solutions into their own adaptation strategies.

Innovative Insurance Solutions for Climate Change report (PDF 3.7 MB, external)