Global Shield was launched in Nov 2022 with an objective to increase the resilience of vulnerable populations in the Global South against climate risks and consequently help to avert, minimize and address losses and damages of climate change.
Last week marked a significant milestone as Pakistan became the first Asian country to initiate Global Shield’s In-country Process. The National Multi-Stakeholder Consultation in Islamabad, organized by UNDPFederal Ministry for Economic Cooperation and Development (BMZ) and Ministry of Climate Change, brought together key stakeholders to address the climate-driven challenges faced by Pakistan – one of the top 10 most vulnerable countries.
I was honored to participate in panel discussion on “Building Financial Resilience: Insurance Industry Perspectives”. Here are key messages for the benefit of my network:
💡Although government and public sector insurers have to play a leading role in expanding current dismal level of hashtag#climateriskinsurance and hashtag#cropinsurance, the indispensable role of the private sector cannot be ignored.
💡Key contribution from private sector could be to create more products for these unconventional yet important risks and make them easy, affordable, available and accessible for common people – over 96% of those do not have any prior insurance experience.
💡My argument was that in addition to almost non-existent hashtag#cropinsurance and hashtag#climateriskinsurance, the existing offerings are very complex and far beyond the comprehension of farmers who are almost all uninsured at the moment. This calls for more bottom-up approach for hashtag#MarketCreatingInnovation and hashtag#InclusiveInsurance.
💡While governmental support in terms of premium subsidies for smallholder farmers cannot be undermined; however, growth in insurance for these risks does not require major new regulations for the fact that there is already a supportive regulatory environment available for suppliers to develop this market.
💡Participants also reflected on having more action and less talk as key fundamentals are established and now there is a need for commitment to market-driven solutions.
💡International success stories were also referenced and some of those can be replicated in Pakistan.
Your insights and feedback are welcomed.
hashtag#GlobalShieldToReduceClimateRiskshashtag#GlobalShieldhashtag#ClimateChangehashtag#ClimateRiskhashtag#ClimateResiliencehashtag#ClimateActionhashtag#CropInsurancehashtag#AgricultureInsurancehashtag#InclusiveInsurancehashtag#MicroInsurancehashtag#insurtechhashtag#InstafulSolutions
Nathan RiveAnjum MasoodRizwan HussainPedro Pinheironasreen rashidArup ChatterjeeAZMAT SHAHISana EhsanHannah GrantJan KellettFaisal YazdaniShazia RehmanAmir Khan GorayaMOHAMMAD ALTAF MADRASWALAKhalid HamidFaisal Siddiqui