How climate change sparks innovation for fragile communities | World Economic Forum
The current humanitarian architecture already includes climate change coping strategies as a core aspect to address, particularly in peace building and humanitarian actions. In fact, an increasing number of actors are focusing on the multiple benefits – economic, environmental and humanitarian – of shifting paradigms, from a reactive climate and disaster response, to a proactive mitigation and risk reduction approach. Demonstrating the economic, social and environmental return of such resilience building activities is key to attract investments and thus protect and improve people’s livelihoods.
Financial organizations have now adopted a more systematic approach for their customers. Among the many different tools that practitioners are developing for people in extremely difficult conditions is climate emergency insurance, which has attracted attention among international donors.
This works in the same way as a simple home insurance policy, except that it triggers a payout from the insurer in the event of a disaster. The insured party pays a certain amount to the insurance company and receives their premium back in the event of a disaster, depending on the agreed payout and trigger. By using such an instrument, international donors can also play a guaranteed role and subsidise premium coverage to ensure full coverage even in the poorest countries.
Similar technologies have been used in Cambodia to alert rural communities in case of incumbent flash floods so that people could be ready to evacuate. Automated systems mechanisms can facilitate and speed up the information process by ensuring broad coverage including in remote areas.
It runs alongside the United Nations General Assembly, which this year features a one-day climate summit. This is timely given rising public fears – and citizen action – over weather conditions, pollution, ocean health and dwindling wildlife. It also reflects the understanding of the growing business case for action.