Insurance – No Silver Bullet

Parties will be leaving Marrakech with plenty of work ahead to enhance action and support in order to address loss and damage. With key decisions now reached, let’s take a moment to look at the main tool in the loss and damage toolbox: insurance.

The ability to cope with loss and damage from climate change is going to involve financial mechanisms, including insurance. ECO hopes and expects that many more vulnerable communities will be supported in their efforts to cope with the losses and damages they are already facing. Such support must be guided by pro-poor principles including accessibility, participation of affected communities in designing the support, and the integration of insurance within a comprehensive risk management approach. Importantly, those who have contributed fewer emissions to global carbon pollution cannot and should not be expected to pay for protection against mounting climate risks. In other words, an equitable and rights-based approach to insurance must include financial support to make premiums affordable.

But let us get one thing straight: it’s not possible to insure ourselves out of the climate change problem! 

So whilst ECO strongly welcomes efforts to expand climate risk insurance, we urge Parties to waste no time in developing a comprehensive approach to loss and damage that includes raising finance, addressing slow-onset events and non-economic losses, and a long-term, rights-based approach to migration, mobility and displacement, in the context of climate change.

The framework for the WIM’s five-year work plan shows us where we need to start. ECO urges Parties to give the WIM the resources and support it needs to expedite its work, and become an effective tool for addressing loss and damage in all its dimensions. 2016 very sadly gave us many examples of loss and damage, so it’s now vital for the world to get cracking!

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