The United Nations Capital Development Fund (UNCDF) has formally joined the InsuResilience Global Partnership as part of ongoing efforts to advance its work on risk insurance and climate adaptation in least developed and developing countries.

The Partnership aims to strengthen financial resilience in developing countries and help vulnerable communities recover more quickly from disasters associated with natural hazards through the use of climate and disaster risk finance and insurance solutions.

The UNCDF joins a growing global network of like-minded government and non-governmental organizations, private companies and civil society groups that will allow for the important exchange of experiences, knowledge and expertise.
Moreover, engaging with global stakeholders to achieve stronger collective outcomes and drive impact on overlapping goals is a key priority for the UNCDF.

“The UNCDF is excited to join the InsuResilience Global Partnership given its strong alignment with our strategic goals, values and vision in helping vulnerable communities access ‘last-mile’ finance to reduce the impact of climate change,” said UNCDF Executive Secretary, Preeti Sinha.

“This partnership also aligns with the UNCDF’s new strategic direction and our growing portfolio of investments in developing countries, notably in the areas of resilience and climate action, aimed at protecting the lives and livelihoods of the poor and vulnerable.”

Launched in 2017, the Partnership is guided by its Vision 2025, which aims to protect 500 million poor and vulnerable people against climate and disaster shocks and to cover 15% of these communities for annual disaster losses through pre-arranged risk financing instruments by 2025.

The UNCDF’s focal point for the Partnership will be Krishnan Narasimhan, who is based in Fiji and leads the Pacific Insurance and Climate Adaptation Programme.

“UNCDF has been in the forefront of supporting inclusive insurance initiatives in the Pacific Small Island Developing States (PSIDS) and plans to use this experience to replicate in other geographies,” Mr Narasimhan said.

“By joining this global alliance, UNCDF will gain access to various resources and services available within the partnership and at the same time contribute by sharing its research and implementation experience, especially around digitally-enabled inclusive innovation in climate disaster risk financing and insurance products for mass markets.”

The economic impacts of climate change-related hazards may cause up to 3.3% reductions in global Gross Domestic Product annually by 2020, according to a study by the Organization for Economic Co-operation and Development (OECD).

This will further amplify economic inequalities, exacerbate poverty and put the achievement of the 2030 Sustainable Development Agenda at risk, the OECD study found.

The InsuResilience Global Partnership, with a grand coalition of over 100 members, has a common vision to strengthen the resilience of the poor and vulnerable to climate and disaster risks through the scale-up of risk finance and risk transfer solutions.

Head of the InsuResilience Secretariat, Dr Astrid Zwick, said: “We warmly welcome UNCDF to our Partnership and value the important work they lead toward inclusive and equitable access to finance and development solutions.

“At the InsuResilience Global Partnership, we have been driving an inclusive disaster risk finance and insurance agenda and we appreciate the rich experience of UNCDF to this work and look forward to working hand in hand toward a common vision for resilience and development in the face of increasing climate and disaster risks”