Tuesday, June 28, 2016
The Microinsurance Network, in partnership with GIZ, is organising an Expert Forum on disaster insurance on Tuesday 5th July 2016 – 3pm CEST (9am EST) with the title "Disaster insurance: How does it support and protect the poor and their livelihoods?".
Participants will gain insights on the role microinsurance can play within the context of emergency relief, find out about the Early Recovery Vouchers concept, learn about some of the experiences with disaster insurance schemes targeted at low income people in Peru and China, and actively participate in the discussion on lessons learned going forward.
The detrimental effect of climate change and natural catastrophes carry with them devastating consequences for low income people. The effects include financial shocks that often become insurmountable both at the individual and national level, as well as foregone revenues as low income people minimise risks rather than maximise revenues. Whilst disaster and agriculture insurance may go a long way in supporting recovery of livelihoods after disasters strike, the scale they have been able to reach has thus far been disappointing, in part because of the high costs of insuring catastrophic risk.
For these reasons Disaster Assistance Programmes (DAPs) have been the main mechanism in support of recovery for the poor. However the processes associated with DAPs mean that assistance often arrive with delays and struggle to target those most in need. Once DAPs are institutionalised they tend to increase people’s dependence on assistance and act as a disincentive for seeking alternative precautions against catastrophic loss.
In this Expert Forum, at hand of pilot schemes in Peru and China, we will look at the benefits that disaster insurance can provide, and facilitate a discussion on the potential mechanisms for their delivery.