Four regional insurance risk pools have received backing from donor facility Global Shield Solutions Platform (GSSP) to collaborate on underwriting solutions, build capacity and share knowledge.
The African Risk Capacity (ARC), Catastrophe Risk Insurance Facility of the Caribbean and Central America (CCRIF), Pacific Catastrophe Risk Insurance Company (PCRIC), and Southeast Asia Disaster Risk Insurance Facility (Seadrif) will use the €4.7m ($5.3m) grant received last month for a joint risk pools solution, to establish a global facility to share and analyse risk data, exchange employees and boost common advocacy.
The grant comes in the wake of a study from WTW, the insurance broking and advisory firm, on optimising how they ceded and retained risk and their "exposure to the private capital/reinsurance markets".
Benedikt Signer, executive director of Seadrif Insurance called the backing "a significant milestone [that will] support capacity building for beneficiaries, deployment of tested solutions, and strengthening of risk pools' joint advocacy".
Chief executive officer (CEO) of ARC, Lesley Ndlovu, expects the grant to help ARC "deepen its impact across Africa while reinforcing the collective strength of the regional risk pools".
Isaac Anthony, CEO of CCRIF called the backing "a game-changer in how we deliver on our mandate as development insurers [helping] close the protection gap while enhancing regional resilience to climate risks".
The support represented "a timely and necessary response" at a moment "when political and fiscal challenges on climate finance are intensifying," according to Annette Detken, GSSP's head. She called regional risk pools "a proven, functional model for climate disaster risk financing".