Humanitarian programming, risk management including insurance, & livelihood resilience

Transcription

1 Humanitarian programming, risk management including insurance, & livelihood resilience Session 2: Humanitarian programming for risk reduction and resilience Dakar, Senegal 2-3 October 2013

2 Central idea: Humanitarian programming should include anticipatory (ex ante) climate risk management approaches including insurance and innovative early warning tools because they hold 4 keys to bolstering livelihood resilience.

3 Why should the humanitarian sector care about livelihood resilience today? 10/27/13 3

4 NatCatSERVICE Natural catastrophes worldwide, Number of events by peril with trend Number Geophysical events (Earthquake, tsunami, volcanic eruption) Meteorological events (Storm) Hydrological events (Flood, mass movement) 2011 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatSERVICE As at January 2011

5 Relative trends of annual numbers of loss relevant weather events globally in countries belonging to different income groups (Source: Munich Re Nat Cat Group 2012) 10/27/13

6 Climatic hazards can drive people deeper into poverty & crisis (livelihoods & assets)

7 Small farmers, livelihood resilience, & climate risks

8 How can livelihood resilience and humanitarian programming improve livelihood resilience with anticipatory climate risk management approaches? 10/27/13 8

9 4 ways to bolster livelihood reslience in humanitarian programming 1. Assess loss & damage potential 2. Incentivize loss reduction & resilience-building activities 3. Reduce financial repercussions of volatility & create more certainty in decision-making 4. Provide timely finance to cover loss & damage 10/27/13

10 Assess loss & damage potential: Modeling & mapping Prerequisite for identifying needs & policy priorities (& a core function of insurance approaches). Options for managing risks, asset exposure, & vulnerability. Open-source data & hazard modeling for national &regional risk management &investment decisions. Facilitate regional & international data standards, comparability, methods & data repositories. 10

11 Assess population needs & resilience implications: Cell phone data Analyze & respond to climate driven extremes using newly available big data and analy9cal techniques. Inform policy makers on migra9on flows in response to current an historical emergencies Provide real- 9me analyses to humanitarian response coordinators Predict popula9ons flows for both rapid & slow onset shocks 11

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13 Incentivize loss reduction & resilience-building activities: HARITA Safety nets enhanced when designed with insurance-like properties. Help low-income people temper downturns, which are major impediments to escaping poverty Ethiopia Productive Safety Net Program embeds an index insurance product that allows farmers to pay premiums in kind through labor to build community resilience to climate change 10/27/13 13

14 Reduce financial repercussions of volatility and create more certainty in decision-making: ARC and regional partnerships Africa Risk Capacity (ARC) linking contingency planning, insurance for food security & drought in Africa Traditional ex post humanitarian aid often comes too late to avoid loss of life & livelihoods. Linked to regional forecasting system and indexed insurance helps ARC to serve people even before the crisis materializes. Establishing contingency funding ensures a more timely, reliable response. Each participating country needs to create a contingency plan identifying how ARC funds will be used to assist those affected. 10/27/13 14

15 Provide timely finance to cover loss and damage: Livelihood Protection Insurance Policy Caribbean Adaptation and Insurance for Low-Income People Low-income groups demand weather risk insurance-related solutions (Lashley and Warner, 2012). multi-country approach links livelihood protection with early warning & risk reduction to provide timely and unbureaucratic recovery aid following excessive wind and rainfall events. 2 insurance products: the first to protect the livelihoods of those on low incomes (livelihood protection policy), and the second to protect loan portfolios exposed to weather risks (loan portfolio cover). 15

16 What can the humanitarian sector do to improve livelihood resilience with anticipatory climate risk management approaches? 10/27/13 16

17 Roles of Humanitarian policy & programming in facilita9ng resilience through climate risk management including insurance Objec9ve 1 Provide loss and damage poten2al assessments that support decision- making & facilitate management of weather- related risks. 2-3 Incen9vize loss reduc9on and embed risk transfer into wider resilience building efforts. 3 Provide 2mely finance to cover loss & damage in order to reduce the financial repercussions of vola9lity related to extreme weather events. Func9on Guide and enable assessments of loss and damage poten2al for extreme weather events. Ensure policy coherence and appropriate use of risk transfer tools in a wider context of climate risk management. Opera9onalize climate risk insurance including finance mechanisms and other means for implementa2on.

18 Thank you! Visit the at Dr. Koko Warner, Executive Director, And Section Head Environmental Migration, Social Resilience, and Adaptation United Nations University Institute for Environment and Human Security (UNU-EHS) 10/27/13