2016 World Economic Forum Global Risks Report released

Wednesday, January 20, 2016

This year the World Economic Forum (WEF) will take place from 20 to 23 January in Davos-Klosters, Switzerland. In this context, the WEF published its 11th edition of the Global Risks Report 2016.

The report shows that even G20 countries such as India, Russia and the USA, which are part of the world's breadbasket, can be climate-vulnerable. Insurance schemes can help mitigate risks on food security in the face of climate change through innovative insurance products such as index-based weather insurance, strengthening adaptation mechanisms. The report also puts forward examples of big data and improved climate risk information services that will greatly enhance the efficiency and effectiveness of insurance schemes. One example is NASA’s Shuttle Radar Topography Mission, which now covers Africa and will expand to include Latin America and the Caribbean.

In terms of pandemics and following the Ebola crisis, the World Bank, the World Health Organisation, Munich Re and Swiss Re are in the process of creating the Pandemic Emergency Financing Facility (PEF). PEF aims at swiftly and flexibly deploying emergency funding and rapid response teams once a parametric trigger is reached. In brief, PEF would purchase private sector insurance for developing countries to cover immediate costs of crisis response. The payouts to the affected countries originate from the bond markets and (re)insurance companies. The objective is to drive the various national and international players concerned to collaborate effectively and coherently in advance, to provide a high level of crisis preparedness and response readiness.

In the area of healthcare, WEF supports a project in the Ogun State in Nigeria on a state-subsidised insurance scheme to modernise health equipment, transport and logistics, sourcing of basic medical products and support community-based primary care. The programme is the first of its kind in building the resilience of an entire health system. Although it is still in its early stages, it has already won Nigeria’s Excellence Award for 2015, which recognises efforts in healthcare delivery.

To read the full report, click here.