Climate Risk Adaptation and Insurance in the Caribbean

Studies show that losses caused by weather related natural catastrophes account for up to 6% of GDP in Caribbean countries. In the coming years, given the volatility of the climate this figure is likely to go up. Hence there is a need to develop mechanisms to improve resilience against climate change related risks. In order to address the climate change and social vulnerability in this region, the Munich Climate Insurance Initiative (MCII) has been developing and implementing weather index based insurance solutions to help the vulnerable populations cope with the adverse impact of weather events. The ILO’s Impact Insurance Facility proposes a collaboration with MCII for the second phase of the Climate Risk Insurance and Adaptation in the Caribbean project to build capacity of both insurers and distribution channels (providers) and create awareness and better understanding among consumers in the Caribbean markets. The knowledge and experience gained in the first phase as well as the lessons learned will help in enhancing implementation in the 2nd phase. This note outlines a number of areas where the Facility can support MCII to leverage lessons from the first phase and to use them to develop activities to accelerate progress and enhance the contribution of insurance, both as a protective and productive tool in the second phase of the project. Potential interventions are organized in three main components: Capacity building of insurance companies to carry out parametric insurance programmes Capacity building of distribution channels to work effectively with insurance companies in creating better outreach among target customers Stimulating demand through consumer education and awareness campaigns and create value

Project symbol

RLA/15/02/MII

Admin unit

SFU

Start date

01/06/2017

End date

31/05/2020

Total allocation

752425

Total expenditure

Status

Closed

749583

Development Partners

Munich Climate Insurance Initiative (MCII)

Country/Countries

Americas - regional

Outcomes

Outcome 4: Sustainable enterprises as generators of employment and promoters of innovation and decent work