The Insurance Development Forum (IDF), a public-private partnership led by the insurance industry and supported by international organizations, has launched a program to develop a parametric flood and earthquake product, as well as indemnity landslide protection in Colombia.
The IDF, represented by its members Hannover Re and Willis Towers Watson, together with the international humanitarian assistance and sustainable development organization Global Communities, have formed a public-private partnership to promote resilience in communities susceptible to natural catastrophes by developing natural disaster risk insurance products for the City of Medellín.
The IDF describes the project as potential blueprint for other Colombian and Latin American cities.
The Medellín project is part of the Tripartite Agreement launched in 2019 between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) during the United Nations Secretary General’s Climate Action Summit.
The purpose of the joint agreement is to support the development of risk management solutions for climate-vulnerable countries.
Once the product is developed, the insurance would benefit local affected communities in accordance with the Medellín’s emergency response plans – for example with food and cash disbursements, as well as fast repair of basic infrastructure.
The project thus increases the resilience of Medellín to climate risks and natural disasters through insurance protection. Serving as a role model for other cities of the country, the project also fosters a favorable environment for the development of similar climate and natural disaster risk insurance products in the Colombian market.
“The IDF is delighted to see implementation of another Tripartite project involving the insurance industry working hand in hand with a government to address the significant proportion of physical damage and financial losses often incurred as a result of a disaster – in this instance, floods, earthquakes and landslides,” commented IDF Secretary General Ekhosuehi Iyahen.
About the IDF
The IDF is a public-private partnership led by the insurance industry and supported by international organizations. The IDF was first announced at the United Nations Conference of the Parties (COP21) Paris Climate summit in 2015 and was officially launched by leaders of the United Nations, the World Bank and the insurance industry in 2016.
Source: Insurance Development Forum (IDF)
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