What we are doing
The project focuses on providing insurance coverage against natural hazards for cities in Latin America. Its primary goal is to enhance the safeguarding of critical infrastructure and support vulnerable populations in these cities, mitigating the impacts of natural disasters. Through transferring their risk via insurance, cities will also be encouraged to update and fortify existing disaster risk management plans as part of their risk reduction and risk retention. This initiative aligns with the "Vision 2025" of the InsuResilience Global Partnership (IGP), which aims to fortify the resilience of developing countries and shield the lives and livelihoods of impoverished and vulnerable individuals from the consequences of disasters.
The project's success will be gauged by the cumulative insured amount of the insurance products backed by the UIIF, encompassing the insurance policies of all participating cities. Additionally, an indicator of achievement will be the number of urban residents in low-income and vulnerable communities who receive enhanced protection through insurance products supported by UIIF.
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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)
4. 7.5 million poor and vulnerable populations to be covered through the insurance policies
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What we are achieving
UIIF has three major components:
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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