The ferocious impact of flooding on livelihoods and property demands efficient and ecofriendly adaptation measures. The Greater Accra Metropolitan Area (GAMA), Ghana loses a huge amount of resources to flooding every year. Although various interventions and measures have been put in place to ensure that flood risk in GAMA is properly managed, some Metropolitan, Municipal, and District Assemblies (MMDAs) in GAMA face significant challenges to finance reconstruction work after floods. Chronic cash constraints mean that reconstruction of non-critical infrastructure is often delayed or not

The Strategic Alliance GIZ-Allianz-BIMA is a collaboration between the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Allianz SE, Allianz Re and BIMA MILVIK, which joined forces to support governments, SMEs and households across the globe in strengthening their risk management plans. On the topic of climate risk, the project is currently working in Morocco and Ghana, developing integrated risk management solutions that incorporate insurance products. Vulnerability to climate change and natural disasters is increasing worldwide. Strategies must be developed to better

In Paraguay, the agricultural sector continues to be the most important economic sector, with high relevance for national economic growth. While traditionally, there has been a strong track record and concentration of public resources on cattle production, the rather non-traditional sectors of small animal husbandry have become an increasingly important source of income for vulnerable rural households. Yet, the producers and other actors of the value chain face different risks: recurring inundations blocking access roads or the outbreak of animal diseases in production clusters can interrupt

China ranks first in the world for expected annual GDP losses from climate-induced natural disasters. At the same time, China has experienced an unprecedented level of urban growth with exceptional speed. In 2020, more than 60% of China’s population (840m inhabitants) live in cities. The combination of urban growth and climate vulnerability poses significant challenges to China’s sustainable development. Extreme weather events caused expected annual economic losses of up to 1.3 percent of GDP. The project will empower local pilot cities with an Integrated Climate Risk Management (ICRM)

The agricultural sector is a key segment of the Paraguayan economy, representing 30% of gross domestic product, 40% of exports, and the source of employment for a large majority of the rural population.1 Given the importance of this sector, agricultural risks are key to the economic and social health of Paraguay. Family farmers and their households, representing 90% of the total farms, are the ones most at risk of being trapped or falling into poverty due to external shocks and to the lack of adequate protection mechanisms. Due to the country’s subtropical temperate climate, characterized by a

Sustainable insurance solutions for agricultural and climate risk requires a joint effort of both the public and the private sector: the partners need to cooperate and commit to facilitating a market development process. Private insurance companies design appropriate insurance products, establish administrative processes and carry the risk. They invest financial and human resources and commit themselves to the agricultural and climate risk insurance markets. Government support that goes beyond creating an enabling regulatory environment can be critical to the sustainability of such systems

Competitive markets are best geared to respond to farmers’ need and offer tailor-made insurance products. It is the government’s responsibility to ensure a level playing field. This is particularly important in countries where state-owned insurers compete with the private sector. Policymakers and the regulator have to create a framework that provides all market players, public and private, the same access to infrastructure and services, such as access to data on weather or agricultural production. In countries where premiums are subsidized, all insurance companies have to be eligible to

Over the past 30 years in the Caribbean, floods and tropical storm damage affected 1.5 million people directly and caused over USD 5 billion in damage. The increasing frequency and intensity of extreme weather events stress societies and natural systems. Challenges 1. Affordability issues for the target low-income segment. Additional transaction cost and taxes. Also, even with this cost structure, insurers and distributors are not sufficiently incentivized to push the product. 2. Intensive marketing efforts and consumer education are needed to increase the scale of LPP. Technology

There are two major challenges with respect to agricultural insurance in Ghana: 1. Enrollment: Scaling performance of the agricultural insurance market remains low (very few products). The growth rate of the sector is very slow (36% from 2011–2016). Very poor performances in 2012 and 2013 when overall enrolment dropped by 84% and 86% respectively. These challenges are attributable to the complexity of insurance products, financial illiteracy, and aversion towards new risk management approaches. 2. Claims: The only prominent claim pay-outs were in 2015 where 1,701 farmers received a payment