The UN Development Program said on Monday that the German government has contributed € 35 million ($ 40.9 million) to fund a new risk transfer initiative, the Insurance and Risk Financing Facility, in its financial sector.
The goal is to create insurance and risk financing solutions in over 50 developing countries by 2025 and contribute to the InsuResilience Vision 2025 goal of protecting 500 million poor and vulnerable people by 2025.
“In a world of growing and converging risks, "countries and their societies are often the worst affected and the least able to rebuild and recover," said Achim Steiner, UNDP administrator.
Under the IRFF, UNDP will work with governments to include climate risk models in national development plans and financing strategies, nationally defined grants, national adaptation plans and more.
Initial funding will provide technical assistance, ne tworks and partners, project identification and development, partner mapping and matching, and much more in all 170 countries, according to Jan Kellett, UNDP Special Adviser, Financial Sector Hub and Corporate Governance, insurance and risk financing.
The facility will strengthen the protection of vulnerable communities from socio-economic, climate and health disasters by significantly increasing the role of insurance and risk financing in development, the statement said on Monday.
“The funds are primarily earmarked for technical, capacity-building work on site, as well as for the development of new risk transfer solutions with our insurance industry partners. Although the UNDP itself will not pay premiums, it will work – country by country and globally – to explore how governments can receive financial support, depending on their individual needs and capabilities, says Daniel Stander, senior adviser to the UN Development Program and Former Global CEO of Disaster Model Risk Management Solutions Inc.
Additional funding is expected, he said. "The UNDP team – with German state support – will look for more donor support."