Redressing The Balance

The Chartered Insurance Institute Journal: December 16, 2022

https://thejournal.cii.co.uk/2022/12/16/redressing-balance

My blog for the Chartered Insurance Institute Journal on #lossanddamagefund – which finally saw light of the day at the #COP27 – after three plus decades of discussion and negotiations. The insurance industry has been muted, thus far, in its response. While insurers have no role here, there is a room for synergy and a scope for learning. Climate losses are not the monopoly of #GlobalSouth alone. 2022 has demonstrated the firepower of ‘Mother Nature’ pushing back ‘Father Greed’. #GlobalNorth has borne a significant brunt.

Hardening insurance premia for natural catastrophes only evidence the fact that these losses are hurting #insurers and #reinsurers. Scientists tell us it can only get worse as global temperatures rise. Just that the small island nations and the lesser developed countries have been impacted for virtually no fault of theirs. Experience from handling of loss and damage portfolio could provide significant learning to the insurance industry in areas of adaptation, mitigation and resilience building. Needless to mention the likes of climate modelling, scenario planning and product development.

Loss and Damage would not only be a boon to the vulnerable countries but also signals a long overdue transformation of the global multilateral financial institutions. From Bretton Woods we could be in for a Bridgetown Initiative as envisioned by Barbados Prime Minister Mia Amor Mottley. The tireless and heroic work of island nations in particular has got us here.

Tyrone Hall, PhDRoger-Mark “R-M” V. De SouzaAngelique PouponneauKera Sherwood-O’ReganMairi DuparLisa McNamara