Lloyd’s unveils UNCDF & Insurance Task Force partnership
Lloyd’s, on behalf of the Sustainable Markets Initiative’s Insurance Task Force, has announced a partnership with the United Nations Capital Development Fund (UNCDF) to scale insurance access for climate-vulnerable countries.
Through this partnership, all parties aim to collaborate to design innovative insurance products that will deliver financial resilience against climate shocks in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
John Neal, CEO of Lloyd’s, commented: “Insurance has a vital role to play in building resilience against climate-related risks. This partnership with the UNCDF underpins the Sustainable Markets Initiative’s mission to develop a coordinated global effort to mitigate climate and natural catastrophe risks as we progress towards a more sustainable future.”
The partnership will initially focus on building and scaling solutions across Fiji and the Pacific Islands. It will also seek to replicate the model in other regions, including Asia and parts of Africa.
Additionally, the UNCDF and Lloyd’s looks to promote Public-Private Partnerships in these regions, with the aim of closing the protection gap, and ensuring the knowledge gained from these is shared with key national, regional, and international stakeholders.
These include policymaking think-tanks, United Nations agencies, and academic research institutions.
Mourad Wahba, Officer-in-Charge of the UNCDF, said: “Insurance can serve as a powerful tool, not only in support of climate resilience, but also to secure the delivery of the Sustainable Development Agenda in the world’s most vulnerable countries. To deliver on this promise, we will need innovation and collaboration. The SMI as well as the partnership we are entering into today deeply reflects both of these elements.”
Lloyd’s, as Chair of the Insurance Task Force, will collaborate with the UNCDF to identify and address potential policymaking challenges hindering the development of climate risk insurance in developing markets.
It will also help to promote best practice initiatives for SID and LDC policymakers to best mitigate climate catastrophe risks.
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