What we are doing
The Project concerns insurance protection against natural hazards for cities in Latin America. The objective of the Project is to better protect critical infrastructure and poor vulnerable populations in cities in Latin America from the impacts of natural hazards. This is to contribute to the Vision 2025 of the InsuResilience Global Partnership (IGP), “strengthen the resilience of developing countries and protect the lives and livelihoods of poor and vulnerable people against the impacts of disasters”.
The achievement of the target is to be measured by the aggregate sum insured of the insurance products supported by the UIIF, i.e. the insurance policies of all insured cities. The number of poor and vulnerable urban residents receiving additional protection through UIIF-supported insurance products will also serve as an indicator.
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How we are tracking
1. By 2025, 10 insurance policies against natural hazards have been newly developed or restructured (Output A)
2. Insurance policies are pooled in a newly established risk pool (Output B)
3. Cities will be strengthened in their natural hazard management capabilities via targeted technical advice (Output C)
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What we are achieving
COMPONENT 1: Insurance product development and premium subsidy
By 2025, 10 insurance policies against natural hazards have been newly developed or restructured that provide rapid financial resources to cities after damaging events to rebuild critical infrastructure and help the poor vulnerable population cope with the negative impacts.
COMPONENT 2: Regional Risk Pool
Insurance policies are pooled in a newly established risk pool (Output B) to achieve lower premiums for cities via diversification benefits.
A suitable pooling solution for the portfolio of different insurance policies of participating cities will be developed, where risks are pooled, meaning that the risk pool will take over a pre-determined share of the risk of the primary insurers, and an overall reinsurance coverage is structured on the global reinsurance market for the cumulative portfolio.
COMPONENT 3: Accompanying advice
Cities will be strengthened in their natural hazard management capabilities via targeted technical advice (Output C) to minimize risks and use insurance payouts in a sustainable manner.
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