Developing countries, and particularly the poorest and most vulnerable communities, are disproportionately affected by climate change. Exposure to shocks, such as floods and storms, and stresses such as droughts or changing rainfall patterns, can also affect those who are not poor but remain vulnerable. With the frequency of such events set to rise with climate change, communities’ capacity to absorb climate shocks and stresses represents a key component of climate resilience.
Climate risk insurance and social protection measures can help reduce affected populations’ vulnerability to shocks and stresses. Well-designed climate risk insurance schemes, when applied as part of broader risk management strategies, can act as a buffer for people shortly after an event occurs and protect people from falling (back) into poverty. Social protection, such as cash transfers and retraining, together with a wide range of other programmes aiming to reduce poverty and vulnerability, is increasingly recognised as a tool to help communities to adapt to climate impacts. Social protection can also improve incomes in the long term.
The UN Climate Resilience Initiative and InsuResilience are seeking innovative ideas for linking climate risk insurance with other forms of social protection to further enhance communities’ ability to absorb the impacts of climate change.
The contest winner will receive seed funding to implement the proposal (worth 40,000 euros) and mentoring, training and technical assistance (worth 12,000 euros).