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Launch of theGlobal Insurance Industry Statement06 September 2010-09-09 Lloyds’s of LondonPress Coverage


Key press cutsContentsINDUSTRY URGES GOVERNMENTS TO ACT ON CLIMATE CHANGE ................................................. 3INSURERS CALL FOR MORE ACTION TO ADAPT DEVELOPING WORLD TO CLIMATE CHANGE .. 4INSURANCE SECTOR CALLS FOR ENVIRONMENTAL ACTION ........................................................... 6Four insurance climate change initiatives have today launched a global insurance industry statementon adapting to climate change in developing countries. .......................................................................... 6INSURERS CALL FOR MORE ACTION TO ADAPT DEVELOPING WORLD TO CLIMATE CHANGE .. 8INSURERS CALL FOR ACTION ON CLIMATE CHANGE ....................................................................... 10INSURERS CLIMATE STATEMENT RECEIVES UN AND AOSIS BACKING ........................................ 11CLIMATE CHANGE HELP URGED FOR DEVELOPING NATIONS........................................................ 12LES ASSUREURS SE PRÉPARENT AU CHANGEMENT CLIMATIQUE; RÉUNIES À LONDRES, LESCOMPAGNIES D’ASSURANCES AFFIRMENT POUVOIR AIDER LES PAYS ÉMERGENTS AVECLEUR MÉTHODE DE GESTION DES RISQUES ...................................................................................... 13INSURERS DEMAND KEY ROLE IN CLIMATE ADAPTATION .............................................................. 14ALLIANZ UK - OVER 100 INSURERS CALL FOR GREATER ACTION TO ADAPT THE DEVELOPINGWORLD TO CLIMATE CHANGE .............................................................................................................. 15INSURANCE INDUSTRY KEEN TO COVER CLIMATE-RELATED RISKS ............................................ 17INSURERS HIGHLIGHT SECTOR'S ROLE IN CLIMATE CHANGE FIGHT ........................................... 192


Industry urges governments to act on climate change6 September, 2010Targeted investment will help insurers manage risks, says reportInternational industry bodies have called on governments to take practical steps to mitigate theimpacts of climate change on the developing world.ClimateWise, the Geneva Association, the Munich Climate Insurance Initiative and leadinginsurance companies within the United Nations Environment Programme Finance Initiativeissued a joint statement at Lloyd’s earlier today.The statement states that governments across the world are looking to the insurance industryas a source of solutions to the climate change related problems. But it says governments mustcreate an enabling environment within which insurance can manage risks most effectively.The four bodies urge governments to implement the Hyogo agreement on disaster riskreduction, which recommends each should appoint a national risk officer with a mandates todevelop a holistic risk management strategy. Government action could also embrace limitedinvestment to measure and reduce those risks, such as by climate proofing new infrastructureand developing and enforcing zoning and building codes.3


news homepage | full list of labels | about the news blogwild happenings in singapore | our wild places | make a difference! | wildsingaporehomepage | email riaInsurers call for more action to adapt developing world to climatechangeUNEP 6 Sep 10;London, 6 September 2010 - Four initiatives representing more than 100 leading internationalinsurance companies are today calling on governments worldwide to harness risk managementtechniques 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 UnitedNations Framework Convention on Climate Change (UNFCCC) at a press conference to beheld in Lloyd's of London.The statement will highlight how governments can unlock significant potential to increase theprotection and reduce the vulnerability of developing world populations and economies fromnatural 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-carboninvestment conference convened by the UK government, are ClimateWise, The GenevaAssociation, the Munich Climate Insurance Initiative (MCII) and the United Nations EnvironmentProgramme Finance Initiative (UNEP FI).The recent floods in Pakistan, China and Niger are a timely reminder that the world must adaptto become more resilient to the long-lasting and significant changes in climatic conditions beingexperienced across the world. These changes are likely to have the most damaging impacts onthe developing world, where even small economic losses can have long-term effects ondevelopment, and where human health is generally less robust.In the past three decades, direct global economic losses for all types of natural catastropheshave averaged US$90 billion per year, with 78% of those natural catastrophes being weatherrelated.Meanwhile, 85% of deaths associated with all natural catastrophes over that timescalehave occurred in developing countries (Munich Re, 2010).There is enormous potential to be derived from a partnership-based approach to tackling theclimatic risks faced by people and governments around the world. Indeed, several communitiesaffected by climate change are already benefiting from projects that improve risk managementand feature insurance elements.Over 4500 Mongolian herders covered by a public-private index-insurance scheme are currentlyreceiving indemnity payments totaling around US$1.4 million for cattle mortality losses causedby a particularly harsh winter.And in September 2008, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) - a publicprivatepartnership - paid US$6.3 million to the Turks and Caicos Islands after Grand Turk washit by Hurricane Ike.The statement launched today underscores the view that risk management mechanisms are4


currently falling considerably short of their potential in delivering resilience benefits to thedeveloping world. The insurance initiatives are therefore calling on governments to:* Implement risk reduction measures already agreed at the 2005 World Conference on DisasterReduction* Provide a suitable enabling environment, including economic and regulatory frameworks, forrisk 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 microinsuranceschemes which reduce losses for climatic risksToday's statement calls on governments to formally recognise the potential role for insurance inthe United Nations climate change negotiations, and to open channels for dialogue at a nationallevel so that progress can be made immediately.There is now an opportunity, given the current international negotiations under the UNFCCC, tofirmly anchor insurance expertise and components into any global adaptation mechanism underthe international climate-change regime.A number of realistic proposals have already been submitted, the priority now is forgovernments to reach agreement so that they can be implemented.Andrew Maskrey of the United Nations International Strategy for Disaster Reduction, will opentoday's launch with a keynote address. After the press conference, a high-level panel discussionled by senior insurance, government and NGO figures will explore immediate next steps. A copyof 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 ofgovernments on foreign aid alone is unsustainable. As the global climate continues to warm, wehave 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 canonly be leveraged through a partnership approach with governments. With over 100 of theworld's leading insurers standing ready to engage, the opportunity for partnership building isimmense."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 isbetter than cure'. If governments, especially in the developing world, can implement robust riskmanagement and loss reduction measures then a significant amount of both human sufferingand 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 contributelittle to greenhouse gases. These are precisely the areas which have the fewest tools tomanage and transfer the risks they face and they often lack the financial resources to adapt toclimate change."Achim Steiner, UN Under-Secretary-General and UNEP Executive Director said, "The insuranceindustry is making it clear: it has the expertise and the creative solutions to assist vulnerablecountries and communities manage the risks of climate change. But it is a partnership thatworks both ways. Governments need to act on this opportunity and harness this reservoir of riskassessment skills. Secondly, the insurance industry needs a fighting chance of success. Inother words governments need to back big cuts in emissions in line with the scientific reality".5


Insurance sector calls for environmental actionAuthor: Mairi MacDonaldSource: Post | 06 Sep 2010Categories: Europe | Claims | Insurer | RegulationTags: Munich re | Climate change | Andrew torrance | EnvironmentalFour insurance climate change initiatives have today launched a global insurance industrystatement on adapting to climate change in developing countries.Climate Wise, the insurers of the United Nations Environment Programme Finance Initiative,The Geneva Association and the Munich Climate Insurance Initiative have made a jointstatement highlighting how governments can work towards increaseing the protection andreducing the vulnerability of developing world populations and economies from natural disastersthrough better risk management and by enabling insurance-type approaches.In particular, they stated the insurance industry can support adaptation efforts by applying itsexpertise in risk management, by helping to incentivise loss reduction, by developing newinsurance products and by raising awareness among the many stakeholders of the insuranceindustry, including governments and climate change negotiators.The statement was launched at Lloyd's of London after a keynote address from AndrewMaskrey of the United Nations International Strategy for Disaster Reduction.Andrew Torrance, chairman of Climate Wise, said, "With climatic disasters inflicting more andmore damage, the increasing reliance of governments on foreign aid alone is unsustainable. Asthe global climate continues to warm, we have to find new ways to protect people andeconomies 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 partnershipapproach with governments. With over 100 of the world’s leading insurers standing ready toengage, the opportunity for partnership building is immense.”Patrick Liedtke, secretary general and managing director of The Geneva Association, said: “Thecore principle of risk management and loss prevention is that in most cases ‘prevention is betterthan cure’. If governments, especially in the developing world, can implement robust riskmanagement and loss reduction measures then a significant amount of both human sufferingand economic loss could be prevented.”6


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 contributelittle to greenhouse gases. These are precisely the areas which have the fewest tools tomanage and transfer the risks they face and they often lack the fi nancial resources to adapt toclimate change.”Achim Steiner, UN under-secretary-general and UNEP executive director, said: “The insuranceindustry is making it clear: it has the expertise and the creative solutions to assist vulnerablecountries and communities manage the risks of climate change. But it is a partnership thatworks both ways. Governments need to act on this opportunity and harness this reservoir of riskassessment skills. Secondly, the insurance industry needs a fighting chance of success. Inother words governments need to back big cuts in emissions in line with the scientific reality”.7


States News ServiceINSURERS CALL FOR MORE ACTION TO ADAPT DEVELOPING WORLD TOCLIMATE CHANGE6 September 2010The following information was released by the United Nations Environment Programme(UNEP):Four initiatives representing more than 100 leading international insurance companies are todaycalling on governments worldwide to harness risk management techniques and insuranceexpertise to help the developing world adapt to climate change.The initiatives will present a statement aimed at world leaders and negotiators of the UnitedNations Framework Convention on Climate Change (UNFCCC) at a press conference to beheld in Lloyd's of London.The statement will highlight how governments can unlock significant potential to increase theprotection and reduce the vulnerability of developing world populations and economies fromnatural 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-carboninvestment conference convened by the UK government, are ClimateWise, The GenevaAssociation, the Munich Climate Insurance Initiative (MCII) and the United Nations EnvironmentProgramme Finance Initiative (UNEP FI).The recent floods in Pakistan, China and Niger are a timely reminder that the world must adaptto become more resilient to the long-lasting and significant changes in climatic conditions beingexperienced across the world. These changes are likely to have the most damaging impacts onthe developing world, where even small economic losses can have long-term effects ondevelopment, and where human health is generally less robust.In the past three decades, direct global economic losses for all types of natural catastropheshave averaged US$90 billion per year, with 78% of those natural catastrophes being weatherrelated.Meanwhile, 85% of deaths associated with all natural catastrophes over that timescalehave occurred in developing countries (Munich Re, 2010).There is enormous potential to be derived from a partnership-based approach to tackling theclimatic risks faced by people and governments around the world. Indeed, several communitiesaffected by climate change are already benefiting from projects that improve risk managementand feature insurance elements.Over 4500 Mongolian herders covered by a public-private index-insurance scheme are currentlyreceiving indemnity payments totaling around US$1.4 million for cattle mortality losses causedby a particularly harsh winter.And in September 2008, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) - a publicprivatepartnership - paid US$6.3 million to the Turks and Caicos Islands after Grand Turk washit by Hurricane Ike.The statement launched today underscores the view that risk management mechanisms arecurrently falling considerably short of their potential in delivering resilience benefits to thedeveloping world. The insurance initiatives are therefore calling on governments to:8


Implement risk reduction measures already agreed at the 2005 World Conference on DisasterReductionProvide a suitable enabling environment, including economic and regulatory frameworks, forrisk management and insurance to function at all levels of societyInvest in reliable risk exposure data and making it freely available to the publicAct on lessons learned about the benefits of regional public-private partnerships and microinsuranceschemes which reduce losses for climatic risksToday's statement calls on governments to formally recognise the potential role for insurance inthe United Nations climate change negotiations, and to open channels for dialogue at a nationallevel so that progress can be made immediately.There is now an opportunity, given the current international negotiations under the UNFCCC, tofirmly anchor insurance expertise and components into any global adaptation mechanism underthe international climate-change regime.A number of realistic proposals have already been submitted, the priority now is forgovernments to reach agreement so that they can be implemented.Andrew Maskrey of the United Nations International Strategy for Disaster Reduction, will opentoday's launch with a keynote address. After the press conference, a high-level panel discussionled by senior insurance, government and NGO figures will explore immediate next steps. A copyof 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 ofgovernments on foreign aid alone is unsustainable. As the global climate continues to warm, wehave 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 canonly be leveraged through a partnership approach with governments. With over 100 of theworld's leading insurers standing ready to engage, the opportunity for partnership building isimmense."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 isbetter than cure'. If governments, especially in the developing world, can implement robust riskmanagement and loss reduction measures then a significant amount of both human sufferingand 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 contributelittle to greenhouse gases. These are precisely the areas which have the fewest tools tomanage and transfer the risks they face and they often lack the financial resources to adapt toclimate change."Achim Steiner, UN Under-Secretary-General and UNEP Executive Director said, "The insuranceindustry is making it clear: it has the expertise and the creative solutions to assist vulnerablecountries and communities manage the risks of climate change. But it is a partnership thatworks both ways. Governments need to act on this opportunity and harness this reservoir of riskassessment skills. Secondly, the insurance industry needs a fighting chance of success. Inother words governments need to back big cuts in emissions in line with the scientific reality".9


Insurers call for action on climate change06 September 2010Four initiatives representing more than 100 leading international insurancecompanies have called on governments worldwide to harness risk managementtechniques and insurance expertise to help the developing world adapt to climatechange.Four initiatives representing more than 100 leading international insurance companies havecalled on governments worldwide to harness risk management techniques and insuranceexpertise to help the developing world adapt to climate change.The initiatives presented a statement aimed at world leaders and negotiators of the UnitedNations Framework Convention on Climate Change (UNFCCC) at a press conference at Lloyd'sof London.The four groups launching the statement are ClimateWise, The Geneva Association, the MunichClimate Insurance Initiative (MCII) and the...10


Insurers climate statement receives UN and Aosis backing6 September 2010UNITED NATIONS disaster risk reduction specialists have welcomed insurance industry plansto increase pressure on government to harness risk management expertise in climate changeadaptation, but warned fundamental improvements still need to be made in risk governanceacross many developing world countries for insurance to become feasible.A united industry statement calling on governments worldwide to harness risk managementtechniques and insurance expertise in climate change adaptation was launched at Lloyd’s OldLibrary and received instant backing from the United Nations International Strategy for DisasterReduction (ISDR).But at the official launch of the statement, backed by the Geneva Association, Munich ClimateInsurance Initiative, UN Environment Programme Finance Initiative and ClimateWise, AndrewMaskrey, representing ISDR, said risk governance was a critical issue, with low-incomecountries needing to address the shortage in governance capacity that would limit theircapabilities to implement risk reduction and risk transfer measures.Among the key elements of the statement were an industry call for governments to provide asuitable enabling environment for risk management and insurance to function at all levels ofsociety, as well as investing in reliable risk exposure data and making it freely available to thepublic.“We welcome the statement and see it as a significant milestone,” Maskrey said.Walter Stahel, vice secretary-general and head of risk management research at the GenevaAssociation, told the launch: “To make the insurance industry’s knowledge and tools work in thisspace, we need governments to provide the framework so that they can function.”The event also saw a call from MJ Mace, representative of the Alliance of Small Island States(AOSIS), for the insurance industry to show leadership in assisting Aosis’ own bid to create aninternational loss and damage mechanism.”Aosis is looking for the insurance industry to tell us how its tools can be customised to addressthe risks we are facing,” she said.11


Climate change help urged for developing nationsBy Sarah Mortimer6 September 2010LONDON, Sept 6 (Reuters) - Four associations on climate change initiatives, which representover 100 insurers, have urged world leaders and governments to use insurance-linked productsto protect developing countries against the impact of climate change.As the world wrangles over how to fight climate change, insurance think tank the GenevaAssociation, along with insurance industry lobby groups ClimateWise, the Munich ClimateInsurance Initiative (MCII) and the United Nations Environment Programme Finance Initiative(UNEP FI), called for global governments to use better risk management and insurance-typeapproaches to reduce the vulnerability of developing countries from natural disasters.The insurance industry, including reinsurers, who distribute risk around the sector, hastraditionally been the main way to hedge against hurricanes, floods and other national disasters.Insurers have also looked to transfer risks associated with natural disasters to capital marketsinvestors - such as catastrophe bonds. Last year, Swiss Re teamed up with the World Bank toissue a $290 million cat bond to cover against earthquakes and hurricanes in the city.The risks of developing world will become the risks of developed world if we do not engage,Vanessa Otto-Mentz, head of the strategy unit at Santam, a member of ClimateWise told anews conference in London on Monday.The associations, which represent insurers such as Munich Re and Allianz Insurance , wantglobal government's to use the knowledge and expertise from the insurance industry toencourage national risk management processes in developing countries, particularly those mostvulnerable to the impacts of climate change.In addition, the group urged the development of new insurance products, which cover risksaffected by climate and weather events, such as human health, crop yields and animaldiseases."We have an opportunity to reduce significant human and economic suffering through lossprevention and risk transformations," said Walter Stahel, the deputy secretary general at theGeneva Association.He called on governments to invest in systemic, systematic and reliable risk data, which islacking in developing countries and to engage in public/private partnerships to provide cover forcatastrophe risk and micro insurance."The insurance industry has the tools and knowledge - now we need the heads of governmentto provide the framework and conditions in order for these instruments to function," he added.Over the past three decades, direct global economic losses for all types of natural catastropheshave averaged $90 billion per year, with 78 percent of those natural catastrophes beingweather-related, according to the world's biggest reinsurer, Munich Re. Meanwhile, 85 percentof deaths associated with all natural catastrophes over that timescale have occurred indeveloping countries, said the reinsurer.The four associations will lobby world leaders and negotiators of the United Nations FrameworkConvention on Climate Change.(Editing by Kenneth Barry)12


FinanceLes assureurs se préparent au changement climatique; Réunies àLondres, les compagnies d’assurances affirment pouvoir aider les paysémergents avec leur méthode de gestion des risquesEric Albert, Londres463 words7 September 2010Le TempsTEMPSFrench(c) 2010 Le Temps Homepage Address: http://www.letemps.ch.Plus d’une centaine d’assureurs ont lancé lundi un appel pour que les pays émergents utilisentleurs méthodes de gestion du risque pour accélérer leur adaptation au changement climatique.Ils appellent les gouvernements à agir rapidement, rappelant que les catastrophes naturellescoûtent en moyenne 90 milliards de dollars par an, touchant de façon disproportionnée les payspauvres.L’appel, lancé depuis la Lloyd’s, le marché de l’assurance à Londres, a été préparé en communpar le Programme des Nations unies pour l’environnement (PNUE), the Geneva Association (unthink tank spécialisé sur l’assurance et la gestion des risques), ClimateWise (un grouped’assureurs sur le climat) et Munich Climate Insurance Initiative (un autre groupementd’assureurs sur le climat).Plusieurs exemples d’assurance contre les risques climatiques existent déjà. Actuellement,4500 éleveurs en Mongolie perçoivent un total de 1,4 milliard de dollars suite à un hiverparticulièrement dur. Autre initiative: plusieurs îles des Caraïbes se sont mises ensemble pours’assurer contre les risques d’ouragans et de tremblements de terre, ce qui leur garantit derecevoir des liquidités des assureurs dans les six mois qui suivent une catastrophe potentielle.C’est ainsi que les îles Turques et Caïques ont perçu 6,3 milliards de dollars en septembre2008 après le passage de l’ouragan Ike. Cependant, ces efforts d’assurance – qui seront deplus en plus nécessaires si le réchauffement climatique se concrétise – sont balbutiants dansles pays émergents, et l’appel d’hier cherche à faire prendre conscience aux gouvernements dela nécessité de se préparer.«L’accès aux assurances catastrophes dans les pays émergents demeure lamentable, regretteAndrew Maskrey, du PNUE. Il faut dire aux gouvernements: préparez-vous.» «L’assurance ales outils et la connaissance nécessaires, mais nous avons besoin de l’aide des gouvernementspour les faire marcher», renchérit Walter Stahel, vice-secrétaire général de la GenevaAssociation. Les assureurs demandent donc que les gouvernements nomment des directeursdes risques dans leur pays, qui puissent avoir une vue exhaustive des dangers climatiques. Ilsinsistent aussi sur la nécessité d’accentuer la prévention, avec des systèmes d’alertes en casd’ouragan ou de tsunami, par exemple. Actuellement, les Philippines et le Japon ont presque lamême population faisant face à des ouragans, mais un Philippin a 37 fois plus de chancesd’être tué par l’un d’entre eux. Enfin, les assureurs soulignent la nécessité de mieux faire faceaux dangers fréquents de faible intensité (sécheresse modérée récurrente), dont les dommagessont importants sur le long terme.13


Insurers demand key role in climate adaptationCoalition of insurance firms issue statement urging governments to supportpublic-private initiatives designed to accelerate rollout of climate-relatedinsurance policiesBusinessGreen.com Staff, 07 Sep 2010Over 100 of the world's leading insurance companies joined forces yesterday to urge worldleaders to draw on the industry's expertise to shape climate adaptation policies for developingcountries being worked on as part of the UN's climate change negotiations.The Prince of Wales's ClimateWise insurance industry group, the Geneva Association thinktank, UN Environment Programme Finance Initiative (UNEP FI) and Munich Climate InsuranceInitiative, which together represent the world's leading insurance and risk management firms,co-ordinated the joint statement calling on governments to better support proven insurancemechanisms for tackling climate change risks.The four-page statement, which was released on the eve of the British government's CapitalMarkets Climate Initiative conference in London, argues that public-private initiatives wouldallow insurers to extend climate-related policies to developing economies that would help themto manage the risks posed by extreme weather events.Specifically it calls on governments to formally acknowledge the role of the insurance industry inthe on-going UN climate change negotiations and deliver funding and regulatory frameworksthat enable the wider rollout of climate-related insurance products.Andrew Torrance, chairman of ClimateWise and chief executive of Allianz Insurance, said that itwas in governments' own interests to utilise the risk management skills found in the insuranceindustry."With climatic disasters inflicting more and more damage, the increasing reliance ofgovernments on foreign aid alone is unsustainable," he said. "As the global climate continues towarm, we have to find new ways to protect people and economies from the impacts of extremeweather, particularly those who are most vulnerable. Insurers have much to offer, but thispotential can only be leveraged through a partnership approach with governments."His comments were echoed by Achim Steiner, UNEP Executive Director, who urgedgovernments to enter into partnership with the industry in order to support wider trials of microinsurance and climate insurance schemes."The insurance industry is making it clear: it has the expertise and the creative solutions toassist vulnerable countries and communities manage the risks of climate change," he said. "Butit is a partnership that works both ways. Governments need to act on this opportunity andharness this reservoir of risk assessment skills."14


Allianz UK - Over 100 insurers call for greater action to adapt thedeveloping world to climate change7 September 2010Four initiatives representing more than 100 leading international insurance companies are todaycalling on governments worldwide to harness risk management techniques and insuranceexpertise to help the developing world adapt to climate changeThe initiatives will present a statement aimed at world leaders and negotiators of the UnitedNations Framework Convention on Climate Change (UNFCCC) at a press conference to beheld in Lloyd’s of London.The statement will highlight how governments can unlock significant potential to increase theprotection and reduce the vulnerability of developing world populations and economies fromnatural 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-carboninvestment conference convened by the UK government, are ClimateWise, The GenevaAssociation, the Munich Climate Insurance Initiative (MCII) and the United NationsEnvironment Programme Finance Initiative (UNEP FI).The recent floods in Pakistan, China and Niger are a timely reminder that the world must adaptto become more resilient to the long-lasting and significant changes in climatic conditions beingexperienced across the world. These changes are likely to have the most damaging impacts onthe developing world, where even small economic losses can have long-term effects ondevelopment, and where human health is generally less robust.In the past three decades, direct global economic losses for all types of natural catastropheshave averaged 90 billion US dollars per year, with 78 percent of those natural catastrophesbeing weather- related. Meanwhile, 85 percent of deaths associated with all naturalcatastrophes 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 theclimatic risks faced by people and governments around the world. Indeed, several communitiesaffected by climate change are already benefiting from projects that improve risk managementand feature insurance elements.Over 4,500 Mongolian herders covered by a public-private index-insurance scheme arecurrently receiving indemnity payments totaling around 1.4 million US dollars for cattle mortalitylosses caused by a particularly harsh winter.And in September 2008, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) - a publicprivatepartnership - paid 6.3 million US dollars to the Turks and Caicos Islands after GrandTurk was hit by Hurricane Ike.The statement launched today underscores the view that risk management mechanisms arecurrently falling considerably short of their potential in delivering resilience benefits to thedeveloping world. The insurance initiatives are therefore calling on governments to:Implement risk reduction measures already agreed at the 2005 World Conference on DisasterReduction15


Provide a suitable enabling environment, including economic and regulatory frameworks, forrisk management and insurance to function at all levels of societyInvest in reliable risk exposure data and making it freely available to the publicAct on lessons learned about the benefits of regional public-private partnerships and microinsuranceschemes which reduce losses for climatic risksToday’s statement calls on governments to formally recognize the potential role for insurance inthe United Nations climate change negotiations, and to open channels for dialogue at a nationallevel so that progress can be made immediately.There is now an opportunity, given the current international negotiations under the UNFCCC, tofirmly anchor insurance expertise and components into any global adaptation mechanism underthe international climate-change regime.A number of realistic proposals have already been submitted, the priority now is forgovernments to reach agreement so that they can be implemented.Andrew Maskrey, of the United Nations International Strategy for Disaster Reduction, will opentoday’s launch with a keynote address. After the press conference, a high-level paneldiscussion led by senior insurance, government and NGO figures will explore immediate nextsteps.Andrew Torrance, Chairman of ClimateWise and CEO of Allianz Insurance, commented: ‘Withclimatic disasters inflicting more and more damage, the increasing reliance of governments onforeign aid alone is unsustainable. As the global climate continues to warm, we have to find newways to protect people and economies from the impacts of extreme weather, particularly thosewho are most vulnerable. Insurers have much to offer, but this potential can only be leveragedthrough a partnership approach with governments. With over 100 of the world’s leading insurersstanding 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, canimplement robust risk management and loss reduction measures then a significant amount ofboth human suffering and economic loss could be prevented.’Peter Hoeppe, Head of GeoRisks at Munich Re and Chairman of MCII commented, ‘Developingcountries are most vulnerable to climate extremes, even though they contribute little togreenhouse gases. These are precisely the areas which have the fewest tools to manage andtransfer the risks they face and they often lack the financial resources to adapt to climatechange.’Achim Steiner, UN Under-Secretary-General and UNEP Executive Director, said: ‘Theinsurance industry is making it clear: it has the expertise and the creative solutions to assistvulnerable countries and communities manage the risks of climate change. But it is apartnership that works both ways. Governments need to act on this opportunity and harness thisreservoir of risk assessment skills. Secondly, the insurance industry needs a fighting chance ofsuccess. In other words governments need to back big cuts in emissions in line with thescientific reality’.16


Insurance industry keen to cover climate-related risksWednesday, September 08, 2010By Nuel NavarreteMore than 300 people lost their lives in China’s deadliest flooding incident in a decade.Over a hundred leading insurancecompanies worldwide are urginggovernments, especially those of developingcountries, to develop risk managementschemes and insurance expertise to supporttheir climate change adaptation goals.According to the insurance groups, theindustry can offer a myriad of mechanismsto support climate change adaptation,among a host of other efforts.The insurance organizations arerepresented under four groups, namely ClimateWise, The Geneva Association, the MunichClimate Insurance Initiative and the United Nations Environment Programme Finance Initiative.They said the industry holds expertise in such activities as evaluating risk and vulnerability,quantifying and mapping risk and risk transferring methods.The insurance sector is said to be capable of developing new insurance products that addressrisks created by climate and weather events.These new products can cover the diverse range of elements endangered by climate changesuch as human health, crop production and animal diseases.“With climatic disasters inflicting more and more damage, the increasing reliance ofgovernments on foreign aid alone is unsustainable,” said Andrew Torrance, chairman ofClimateWise and chief executive officer of Allianz Insurance."The core principle of risk management and loss prevention is that in most cases 'prevention isbetter than cure',” said Patrick M. Liedtke, secretary general and managing director of theGeneva Association.The groups said insurance puts a premium on adaptation by improving adaptive capacity andoutlining the cost-effectiveness of climate resilience measures.The companies called on world leaders and negotiators in the United Nations FrameworkConvention on Climate Change to include insurance issues s in the debates and start a nationalinformation drive in each country to enable immediate action.The groups’ recommendations came after a month that saw some of the worst natural disastersin recent memory, as towns in Pakistan and China disappeared under the gushing torrents offloods.17


News reports revealed that over 1,000 people died in Pakistan’s worst flood in 80 years.Meanwhile, more than 300 people lost their lives in China’s deadliest flooding incident in adecade.These events are expected to create considerable dents in developing economies, wherepopulations are generally less healthy and minute economic losses can severely hamperdevelopment efforts.The insurance industry said that in the past 30 years, direct global economic losses from naturaldisasters averaged $90 billion annually. About 85 percent of deaths related to natural disastersover the same time scale occurred in developing countries.“If governments, especially in the developing world, can implement robust risk management andloss reduction measures, then a significant amount of both human suffering and economic losscould be prevented,” Mr. Liedtke said.Last update (Wednesday,September 08,2010)18


Insurers Highlight Sector's Role in Climate Change FightShanghai: China | Sep 08, 2010By Elnur763More than 100 insurers joined forces this week to raise awareness of how the industry canassist governments with helping developing nations adapt to climate change.ClimateWise, the Geneva Association, the Munich Climate Insurance Initiative and the UnitedNations Environment Programme Finance Initiative released a joint statement (PDF) Mondayoffering the sector's risk management and insurance expertise to governments in the fightagainst climate change.The group's pointed to the recent floods in China,Pakistan and Niger as examples of some ofthe climate change impacts already taking place. Developing countries, they argue, willexperience the most damaging effects from climate change.Yet risk management mechanisms can play a role in reducing exposure to some of theseclimate-related catastrophes."Developing countries are most vulnerable to climate extremes, even though they contributelittle to greenhouse gases," Peter Hoeppe, head of GeoRisks at Munich Re and chairman of theMunich Climate Insurance Initiative, said in a statement. "These are precisely the areas whichhave the fewest tools to manage and transfer the risks they face and they often lack thefinancial resources to adapt to climate change."The groups contend that with international negotiations taking place, now is the time to embedinsurance expertise into any global adaptation mechanism under a worldwide climateagreement."The insurance industry is making it clear: it has the expertise and the creative solutions toassist vulnerable countries and communities manage the risks of climate change," AchimSteiner, U.N. Under-Secretary-General and UNEP executive director, said in a statement. "But itis a partnership that works both ways. Governments need to act on this opportunity and harnessthis reservoir of risk assessment skills."19

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