2020 in Review - Insurance Development Forum

 
2020 in Review - Insurance Development Forum
2020 in Review

                 IDF The Insurance Development Forum in 2020 | 1
2020 in Review - Insurance Development Forum
2 | IDF The Insurance Development Forum in 2020
2020 in Review - Insurance Development Forum
About the Insurance
Development Forum (IDF)

The Insurance Development              In the 5 years since its establishment,    Through its broad membership
Forum is an industry-led Public-       the membership and mandate of              across industry, government and
Private Partnership bringing           the IDF and its partners has grown         international institutions, the IDF
together insurance industry            enormously. The 16 insurance               enables:
leaders, government officials          industry Chairmen/Chairwomen                synchronisation of insurance-
and international organisations.       and CEOs, 6 heads of public sector           related resilience and adaptation
The IDF was first announced            agencies, and 7 association leaders          building efforts
at the UN Conference of the            who make up the IDF Steering
                                       Committee represent the truly               the development of shared
Parties (COP21) Paris Climate                                                       priorities and coordinated goals
                                       cross-sector nature of the institution.
Summit in 2015, and officially                                                      across sectors
                                       In addition, the 100+ partners
launched by leaders of the
                                       (organisations, companies and               the mobilisation of substantial
United Nations, World Bank and         individuals) who dedicate their time         resources
insurance industry in 2016.            and effort to work alongside the
                                                                                   the promotion of strategic and
The core goals of the IDF are to       IDF to achieve financial resilience
                                                                                    operational relationships
leverage the technologies, expertise   for vulnerable people make the
and financial mechanisms native        partnership what it is: a unique            the safeguarding of the integrity
to the insurance industry to           platform for meaningful change.              and effectiveness of joint efforts
enable the world’s most disaster-                                                   and collective resources
vulnerable governments, economies                                                  the development and launch of
and populations to enhance risk                                                     tangible solutions to close the
understanding and build resilience.                                                 Protection Gap
The IDF is committed to ensuring
that the insurance industry plays                                                 The IDF is proud to be part of this
its part in the transition to a more                                              movement towards a safer, more
resilient and fair world. 2020 has                                                resilient, more sustainable, more
demonstrated the need for public-                                                 dignified world for populations
private cooperation on disaster risk                                              everywhere, and we are pleased to
financing clearer than ever before.                                               publish this 2020 report detailing the
                                                                                  ways in which we are striving towards
                                                                                  this goal.

                                                                             IDF The Insurance Development Forum in 2020 | 3
2020 in Review - Insurance Development Forum
Following detailed
                                                        consultation, creation of            IDF holds its first Steering
                                                        the IDF is approved by               Committee meeting with
                                                        the PCG Chairs (Rt Hon               Stephen Catlin appointed
                                                        Justine Greening, Secretary          Chair, and Helen Clarke

5 Years
                                                        of State, Department of              (UNDP) and Joaquim Levy
                                                        International Development,           (World Bank) as co-chairs.
                                                        UK Government and Helen
                                                                                             IDF formalises partnership with
                                                        Clarke, Administrator,

of the IDF                                              UNDP) and mandated as a
                                                        final outcome of the PCG in
                                                        April 2014.
                                                                                             the International Insurance
                                                                                             Society (IIS) under the
                                                                                             leadership of Mike Morrissey,
                                                                                             President & CEO

                          2013                    2014                   2015           2016                  2017

                                 Meeting of Political Champions             Dialogue and engagement with          IDF formalises governance
                                 Group for Disaster Resilience              UN processes to understand            structure consisting of:
                                 (PCG) convenes on the margins              how the insurance sector
                                                                                                                  A high-level Steering Committee
                                 of UN General Assembly. Rowan              could support the sustainable
                                                                                                                  of industry chief executives &
                                 Douglas (Willis Towers Watson)             development goals (SDGs) and
                                                                                                                  public sector institution leaders
                                 proposes a dedicated public-               to shape the IDF to maximise
                                 private initiative with the insurance      implementation.                       IDF’s implementation programme
                                 sector, and is appointed to lead                                                 is directed by the IDF Operating
                                                                            IDF features in June 2015
                                 PCG task force consultation with                                                 Committee of the IIS. Chair,
                                                                            UN Insurance Summit at UN
                                 the industry and international                                                   Rowan Douglas, Willis Towers
                                                                            Headquarters in New York,
                                 institutions.                                                                    Watson; Deputy Chair, Ivo
                                                                            attended by UN Secretary
                                                                                                                  Menzinger, Swiss Re; Co-Chairs:
                                                                            General Ban Ki-moon as part of
                                                                                                                  Jan Kellett, UNDP and Olivier
                                                                            the IIS Global Insurance Forum.
                                                                                                                  Mahul, World Bank
                                                                            IDF is formally launched at the
                                                                                                                  Five specialised Working
                                                                            Paris COP21 Climate Summit
                                                                                                                  Groups established:
                                                                            by Mike McGavick, CEO of
                                                                            XL Catlin.                            — Sovereign & Humanitarian
                                                                                                                    Solutions: Chair, Ivo Menzinger
                                                                                                                    (Swiss Re); Deputy Chair,
                                                                                                                    Michael Roth (Munich Re)
                                                                                                                  — Risk Modelling Steering Group:
                                                                                                                    Co-Chairs, Ian Branagan
                                                                                                                    (Renaissance Re) and Marc
                                                                                                                    Gordon (UNDRR)1
                                                                                                                  — Law, Regulation and Resilience
                                                                                                                    Policies: Chair, Bill Marcoux
                                                                                                                    (WCM LLC)2
                                                                                                                  — Investments: Co-Chairs, David
                                                                                                                    Lomas (Black Rock) and Jan
                                                                                                                    Kellett (UNDP)
                                                                                                                  — Inclusive Insurance (formerly
                                                                                                                    Microinsurance): Co-Chairs:
                                                                                                                    Shaun Tarbuck (ICMIF), Joan
                                                                                                                    Lamm Tennant (Blue Marble)
                                                                                                                    and Jan Kellett (UNDP)

1   Formerly UNISDR
2   Formerly Global Head of Insurance Transactions & Regulatory Practise, DLA Piper

4 | IDF The Insurance Development Forum in 2020
2020 in Review - Insurance Development Forum
Denis Duverne (Chairman AXA Group)
   appointed IDF Chair with Co- Chairs Joaquim
   Levy, World Bank Group CFO and Achim Steiner,
   UNDP Administrator.
   IDF Secretariat established in London, hosted
   by the IIS and The Institutes with support and office
   space provided by Clyde & Co.
   Ekhosuehi Iyahen appointed Secretary
   General to coordinate and centralise the IDF’s
   strategy, engagement and activities.

2018                     2019                                                       2020

                               IDF becomes fully operational, representing             In the year of the COVID-19 pandemic, systemic widespread
                               the industry at events across the world and             risk was demonstrated and understood more clearly than
                               deepening dialogue and action on issues related         ever before. Amidst the backdrop of unprecedented
                               to closing the protection gap and the role of           challenges, the IDF used 2020 to build on the
                               insurance in addressing climate risks.                  commitments and announcements of 2019 to launch
                                                                                       full programmes of work.
                               Keiko Honda, Executive VP and CEO of the
                               World Bank's MIGA appointed as Co-Chair.                Hiroshi Matano, Executive VP and CEO of the World
                                                                                       Bank’s MIGA appointed as Co-Chair.
                               IDF Steering Committee reaches 25 member
                               institutions, formally welcoming new public             IDF welcomes two new companies to the Steering
                               sector member BMZ (German Federal Ministry              Committee; China Re Group (represented by He Chunlei,
                               for Economic Cooperation and Development)               Vice Chairman & President) and Milliman (represented by
                               and new private sector members Zurich,                  Ken Mungan, Chairman). The IDF was also pleased to see
                               Ageas & China Re. Operating Committee also              Ingrid Hoven appointed the new Director of Germany's
                               expanded and the following achieved:                    GIZ, and to welcome Jürgen Zattler (Director-General
                                                                                       for International Development Policy, 2030 Agenda and
                               — Membership & Governance document
                                                                                       Climate, BMZ) to the Steering Committee in her place.
                                 approved
                                                                                       IDF maintains its focus on climate and disaster risk, but
                               — Principles of Government Engagement
                                                                                       formally assesses pandemic risk through the lenses of each
                                 agreed
                                                                                       Working Group focus.
                               — IDF Chair appointed as private sector
                                                                                       IDF secures funding from private sector members for risk
                                 representative on the InsuResilience High
                                                                                       modelling infrastructure work.
                                 Level Consultative Group
                                                                                       IDF established as an independent legal entity and formally
                               — Working Group leadership expanded, including
                                                                                       incorporates the Insurance Development Forum
                                 Daniel Clarke (Centre for Disaster Protection)
                                                                                       Limited as a Company Limited by Guarantee, with Board
                                 as Co-Chair of the Sovereign & Humanitarian
                                                                                       of Directors appointed and Swiss Re and AXA appointed as
                                 Solutions Working Group; Andy Jobst (IMF)
                                                                                       Members and international law firm Clyde & Co appointed
                                 and Claus Stickler (Allianz AIM) as Co-Chairs of
                                                                                       as Company legal secretary.
                                 the Investments Working Group; and Astrid
                                 Zwick (InsuResilience Secretariat), Garance           IDF Tripartite agreement with BMZ and UNDP
                                 Wattez-Richard (AXA) and Sabbir Patel (ICMIF)         progresses, with country selection and engagement
                                 as members of the Inclusive Insurance Working         completed and an IDF Programme Coordination Unit
                                 Group executive leadership team.                      (PCU) established in Frankfurt. Two Project Managers hired
                                                                                       as PCU staff members to support the execution of the
                               IDF attends the UN Secretary General’s
                                                                                       Tripartite projects.
                               Climate Action Summit in New York and
                               launches landmark Tripartite Initiative alongside       — BMZ commits €20 million to the project, with €10
                               UNDP and BMZ to engage with and assist 20                 Million applied through UNDP and €10 Million to the
                               countries with Disaster Risk Management/                  InsuResilience Solutions Fund (ISF).
                               Finance by 2025 in line with the InsuResilience         IDF receives grant funding from the InsuResilience
                               Vision 2025.                                            Solutions Fund (ISF) for its landmark public-private
                               — IDF private sector industry members commit            project in Peru development a new sovereign-level
                                 to implementing a public-private partnership          insurance program protecting public schools against
                                 to enable high quality risk insight to more           natural catastrophes. The project is a joint effort between
                                 developing countries and offer up to USD              the IDF, and Peru’s Ministry of Education, Ministry of
                                 5billion of risk capacity for climate risk            Finance, and local insurance association (APESEG).
                                 insurance for selected countries by 2025.             IDF completes the first phase of work under new
                               IDF publishes two proprietary papers: the 'IDF          partnership with UN OCHA on anticipatory action and
                               Guide to Insuring Public Assets' report, led and        forecast-based financing.
                               written by the IDF Sovereign & Humanitarian             IDF launches a sub-committee dedicated to Disaster Risk
                               Solutions Working Group, and 'the Role of               Reduction activities.
                               Technology in Closing the Protection Gap' report,
                               led by the IDF's Law, Regulation and Resilience         IDF continues to publish highly successful proprietary
                               Policies working group.                                 materials, with two flagship reports on i) Development
                                                                                       Impact of Risk Analytics; and ii) The Power of
                                                                                       Technology to Close the Microinsurance Protection
                                                                                       Gap receiving significant support.

                                                                                                IDF The Insurance Development Forum in 2020 | 5
2020 in Review - Insurance Development Forum
Contents

6 | IDF The Insurance Development Forum in 2020
2020 in Review - Insurance Development Forum
Contents

1. Message from Denis Duverne, IDF Steering Committee Chair                             8

2. Introduction from the Secretary General and Operating Committee Chair              10

3. Membership                                                                         14

4. 2020: Key Highlights and Events                                                    18

5. 2020 for the Working Groups                                                        24

6. In Focus                                                                           36

7. The Road Ahead: 2021                                                               38

                                                              IDF The Insurance Development Forum in 2020 | 7
2020 in Review - Insurance Development Forum
Message from the Chairman
                                                  1

8 | IDF The Insurance Development Forum in 2020
2020 in Review - Insurance Development Forum
‘‘     Building greater resilience
                                                                                    is a defining mandate of our
                                                                                    time where insurers can – and
                                                                                    must - play a leadership role as an
                                                                                    industry and in more proactive,

                                                                                                   ’’
                                                                                    closer partnerships with

Message from
                                                                                    government.

                                                                                    World Economic Forum (WEF)
                                                                                    Report: Building a More Resilient and

the Chairman                                                                        Sustainable World, 2020

                                         We offer many congratulations to          With this said, the climate crisis has
                                         Ingrid Hoven, who has played a            not dissipated in the face of the
                                         crucial role in the development of        pandemic. To the contrary, climate
                                         the IDF of the last 5 years, on her       risk is now more important and
                                         appointment as the new Managing           relevant than ever before. We have
                                         Director of Germany’s GIZ, and thank      experienced a threat that impacts
                                         her for her service to our institution    populations across the globe at
                                         over the years. In her place, we          the same time – just as a global
                                         welcome Jürgen Zattler to the IDF         temperature increase of 1.5°C above
                                         Steering Committee in his new             pre-industrial levels will. We have
                                         capacity as BMZ’s Director-General        also witnessed the tremendous
                                         for International Development Policy,     disadvantages developing countries
                                         2030 Agenda and Climate, and              face in dealing with these crises, as
Denis Duverne
                                         look forward to the IDF’s continued       already-pressured state budgets
Chairman, AXA
                                         partnership with BMZ. Finally, we         and competing priorities of health,
IDF Steering Committee Chair
                                         thank Maurice Tulloch for his service     education, infrastructure and socio-
                                         on the Steering Committee as CEO          economic security continue to be
Dear Reader,                             of Aviva, and wish him all the best in    played off. As we see reports of
                                         his retirement, and we are very glad      devastating flooding across China,
As the Chair of the Insurance            to welcome Aviva's newly-appointed        India and much of South East Asia,
Development Forum (IDF) and on           CEO, Amanda Blanc, in his place. Our      and as parts of the world cope with
behalf of my Co-Chairs, Achim Steiner    sincere thanks go to all our partners     hurricane season, it is without doubt
and Hiroshi Matano, I wish to thank      and supporters.                           that the social and economic impact
all the members, partners and                                                      of a climate disaster will be felt even
supporters of this remarkable public-    The need to build greater resilience      more profoundly than before, with
private institution. The IDF has had     for vulnerable people against             health systems already weakened and
its most ambitious year yet, despite     disasters and crises has never been       emergency budgets strained.
the immense challenges faced             more tangibly demonstrated than
across the world in the context of the   in 2020. COVID-19 continues to            The IDF’s key focus remains on
COVID-19 pandemic, and none of this      dominate headlines and agendas,           building resilience for climate-
would be possible without the drive,     and economic downturn is being            vulnerable nations and actors. Now
determination and commitment of          experienced throughout the world.         more than ever, we are in the spotlight
our partners across the development      As we continue to learn more about        to drive real, systemic change.
finance space, and the support of our    COVID-19 and its impacts, the big
Steering Committee.                      questions are becoming increasingly       Thank you for being part of the IDF’s
                                         clear. How do we prevent this from        journey as we continue to raise our
With regard to partnerships and          happening again? How can we rethink       ambition and do more.
membership, 2020 has been another        pandemic risk to manage our future
great year. We were very pleased         better? What part must insurers           Denis Duverne
to welcome China Reinsurance             and insurance play in this? The IDF       IDF Steering Committee Chair
Group and Milliman to the IDF            is uniquely positioned to be part of
Steering Committee, represented          these vital conversations, bringing
by He Chunlei (Vice Chairman and         public and private sectors together
President, China Re) and Ken Mungan      to enhance the understanding
(Chairman, Milliman).                    and management of financial and
                                         pandemic risk.

1   Munich Re NatCatSERVICE database

                                                                              IDF The Insurance Development Forum in 2020 | 9
2020 in Review - Insurance Development Forum
Introduction
                                                   2

10 | IDF The Insurance Development Forum in 2020
Introduction

Ekhosuehi Iyahen                       Rowan Douglas
IDF Secretary General                  Head of Climate & Resilience Hub,
                                       Willis Towers Watson
                                       IDF Operating Committee Chair
Dear Reader,

                                                                                 ‘‘
Despite what continues to be a         and the climate crisis are widely
challenging and uncertain year,        cited and entirely relevant to the               There is a strategic
we are delighted to be able to         work of the IDF: the global nature         opportunity for insurers to
report further significant progress    of impact of both, the system-wide         continue to lead. But doing so
and movement on the IDF’s core         socio-economic damage caused               will require the industry to up
programmes. The advancements           by both, and most poignantly, the          its game even more and embed
made by IDF Working Groups,            disproportionate impact of both            a strategic approach; one that
project teams and partnerships are     crises on poorer, more vulnerable,         not only integrates climate-
testament both to the urgency and      developing countries. The difference       related risks into day-to-day
importance of our work, and to the     however, in the words of Mami              risk management but also seeks
determination and caliber of our       Mizutori (Special Representative of        to steward a whole-economy

                                                                                                    ’’
                                                                                  transition to a low-carbon and
members. We sincerely thank our        the United Nations Secretary-General
Steering Committee, as always, for     for Disaster Risk Reduction), is that      resilient future.
their generous support and strategic   “while there will be vaccines for
                                                                                  Rowan Douglas and Matt Scott,
guidance throughout this year.         COVID-19, there will be no vaccine
                                                                                  Willis Towers Watson
                                       for the climate emergency”. The
                                                                                  Article: The insurance sector: emerging
The COVID-19 pandemic has exposed      transition to a more climate-resilient
                                                                                  stewards of a whole economy
the weaknesses of current Disaster     world must happen now, and the             transition
Risk Financing (DRF) systems with      insurance industry must continue
absolute clarity. Never before has     to lead. The IDF is a powerful public-
the world experienced such a clear     private institution, placed uniquely
demonstration of the failures of the   at the centre of the challenge, and
global system to mitigate, manage      2020 has been a year of operational
and finance. The urgent need for       transformation as we move towards
change is now completely undeniable.   our goals. 2021 is the year of true
The parallels between this pandemic    impact and action on the ground.

2   Munich Re NatCatSERVICE database

                                                                           IDF The Insurance Development Forum in 2020 | 11
‘‘
                                                                                      project teams, completed by the
  Insurance Development Forum Ltd                                                     hiring of two Project Managers.
                                                  There has to be a better
  Directors: Denis Duverne, in capacity      understanding of the nature of           The PCU, established after much
  as IDF Steering Committee Chair            systemic risk. COVID-19 is a public      consultation between the governing
  Rowan Douglas, in capacity as IDF          health crisis that has become a          parties of the Tripartite Agreement
  Operating Committee Chair                  socio-economic crisis. Weak risk         (IDF, UNDP and BMZ) along with the
  Ekhosuehi Iyahen, in capacity as IDF       governance can no longer be              ISF (InsuResilience Solutions Fund),
  Secretary General                          tolerated…                               is a great achievement and is already
  Members: Swiss Re & AXA                    There will be vaccines for               enabling real traction as we move
  Company legal secretary: Clyde & Co.       COVID-19 but there will not              forward with the Tripartite projects.
                                             be vaccines for the climate
                                             emergency. We will not be able           We have, of course, all lost a number
Another enormous step forward                to isolate or socially distance          of highly valuable, international events
for the IDF this year was the formal         ourselves from the climate               to the pandemic. We had hoped to
incorporation of the Insurance               emergency. Timing is everything,         come together in New York in June for

                                                       ’’
Development Forum (Ltd.) legal entity.       and we cannot fail to seize this         a day of IDF sessions hosted on the
The IDF was formally incorporated            moment.                                  margins of the International Insurance
as a company limited by guarantee                                                     Society’s (IIS) Global Insurance Forum.
in June, with the FCA approving the          Mami Mizutori                            We have also seen the cancellation or
new ‘Insurance Development Forum             Special Representative of the United     postponement of numerous partners’
Limited’ organisation in July. This          Nations Secretary-General for            events and meetings, including of
significant milestone in the IDF’s           Disaster Risk Reduction, UNDRR           course most prominently COP26,
life enables more independence,              (United Nations Office for Disaster      which the UK was preparing to host
greater flexibility and easier               Risk Reduction) and IDF Steering         in December in Glasgow. As the world
interaction with other entities than         Committee Member                         adjusted to remote meetings and
has been previously feasible. These                                                   online events – which are by no means
improvements are vital to the success                                                 without their environmental and
of IDF engagements (e.g. those under        The Tripartite Agreement - launched       accessibility benefits – the IDF followed
the Tripartite Agreement). The formal       between the IDF, UNDP and German          suit, including virtual meetings with our
establishment of the Insurance              donor agency BMZ on the margins of        Steering and Operating Committees,
Development Forum Ltd. required the         the UN Climate Action Summit in New       all Working Group projects going
nomination of Directors, Members,           York in September 2019 – remains          online, and the hosting of a number
and a Company Secretary. Thanks             a central tenet of IDF’s strategy. This   of panel events, webinars and report
are due to a number of parties for          work to bring technical assistance        launches online.
their support throughout the process,       and risk financing tools to 20 climate-
including Swiss Re and AXA, and in          vulnerable countries by 2025 is           An IDF Leadership Roundtable was
particular Nigel Brooke and team at         now fully underway, led by the IDF’s      convened in July on ‘Insuring Systemic
Clyde & Co. whose advice and pro            Sovereign & Humanitarian Solutions        Resilience: Mobilising public- private
bono work was invaluable.                   (SHS) working group and supported         insurance action to deliver pandemic
                                            by the Risk Modelling (RMSG)              and climate resilience’ and featured
                                            and Law, Regulation & Resilience          a keynote by the Hon. Mia Amor
                                            Policies (LRRP) groups. Over              Mottley, QC., MP, Prime Minister,
                                            summer, meetings were held with           Barbados. A second Roundtable
                                            all 20 shortlisted countries, bringing    jointly convened in December with
                                            together private sector IDF (working      the COP26 Private Finance Hub
                                            group) members and UNDP country           focused on the theme ‘Mobilising the
                                            offices on the ground. These meetings     insurance industry towards COP26:
                                            demonstrated huge openness for            Defining Adaptation & Resilience
                                            collaboration, and significant market     commitments’. The event was co-
                                            appetite and resource for this work.      hosted by Denis Duverne (AXA and
                                            Alongside this, the official formation    IDF Chair) and Mark Carney, (UN
                                            of a physical Project Coordination        Special Envoy on Climate Action and
                                            Unit (PCU) was completed, providing       Finance and UK Prime Minister's
                                            an essential source of coordination       COP26 Finance Advisor).
                                            and support for the public-private
                                                                                      2020 has also seen the launch of new
                                                                                      IDF proprietary reports, including the
                                                                                      following. Thanks and congratulations
                                                                                      go to the Working Groups who led
                                                                                      these significant cross-sector projects.

12 | IDF The Insurance Development Forum in 2020
‘‘
The Development Impact of Risk                                                      In addition to the core Working
Analytics paper, led by the IDF's Risk            Global human development          Groups, and following a proposal by
Modelling Steering Group, combined         is set to decline this year for          Michel Lies (Chairman, Zurich Plc), the
the views of over 30 organisations         the first time in a generation.          IDF Steering Committee approved
across public, private and humanitarian    However, inclusive insurance             the establishment of a dedicated
sectors on how risk understanding          can play a vital role to get the         IDF Disaster Risk Reduction (DRR)
underpins sustainable development,         Sustainable Development                  sub-committee in September 2020.
and how public-private collaboration       Goals (SDGs) back on track by            It is widely accepted that the goals of
can accelerate its adoption where          protecting lives and livelihoods,        the DRR agenda and the UN Sendai
it is needed the most. The report          reducing poverty, increasing             Framework are closely aligned with

                                                                  ’’
was launched during an online IDF          financial inclusion, and                 that of the IDF, which has been
Roundtable in December, featuring          empowering women.                        reflected for a number of years by
Eric Andersen (President, Aon plc),                                                 the IDF’s partnership with UN DRR.
Mami Mizutori (Special Representative      Achim Steiner, UNDP Administrator        To take these efforts to the next level,
of the Secretary General, UN Office        Co-Chair of the IDF Steering             the committee, led by Zurich Plc
for Disaster Risk Reduction), Daniel       Committee                                and supported by Mercy Corps and
Clarke, (Director, Centre for Disaster     Keynote speech at the MicroInsurance     the London School of Economics,
Protection) and Ian Branagan (Chief        Network’s International Conference on    will explore the role of the industry
Risk Officer, Renaissance Re) as           Inclusive Insurance                      in aligning IDF’s ongoing work even
esteemed speakers.                                                                  more closely with the DRR space.

The Power of Technology to Close          The role of microinsurance in financial   We also had the privilege of
the Microinsurance Protection             resilience is another priority that       welcoming the World Economic
Gap report, led by the IDF’s Law,         2020 has cast a spotlight on. The IDF’s   Forum, African Risk Capacity Limited
Regulation & Resilience Policies          Inclusive Insurance Working Group         and World Food Programme as
(LRRP) Working Group, follows             began 2020 by undertaking a review        official members of the IDF Operating
the 2019 report, this time looking        of its strategy and direction. Under      Committee, represented by Andre
at microinsurance rather than             the guidance of its Co-Chairs (AXA and    Belieu (Head of Insurance & Asset
sovereign-level insurance Protection      the InsuResilience Global Partnership)    Management, WEF), Lesley Ndlovu
Gaps. The paper demonstrates the          and with significant support from         (CEO, Africa Risk Capacity Limited),
power of innovation and technology        the MicroInsurance Network (MiN),         and Fabio Bedini (Senior Programme
to deliver insurance solutions to         the working group is now working          Advisor, Risk Transfer Team Lead,
vulnerable people, particularly in        towards an ambitious workplan to          WFP).
developing countries, with the aim        contribute a number of meaningful,
of not only closing the Protection        scalable inclusive insurance projects     With thanks,
Gap that exists in connection with        to the InsuResilience Global
microinsurance markets, but to            Partnership ‘Vision 2025’ goals, which    Ekhosuehi Iyahen
address the risks accelerated by          aim to assist 150 million vulnerable      IDF Secretary General
climate change.                           people with microinsurance
                                          programmes.                               and
                                                                                    Rowan Douglas
                                                                                    IDF Operating Committee Chair

                                                                              IDF The Insurance Development Forum in 2020 | 13
Membership
                                                   3

14 | IDF The Insurance Development Forum in 2020
2020 IDF Steering
Committee Membership

Chair: Denis Duverne, Chairman                      Albert Benchimol, President and            Chris Wei, Chairman, IIS
AXA Group                                           CEO, Axis                                  (International Insurance Society)
Co-Chair: Hiroshi Matano, Executive                 Alexander Moczarski, Chairman,             Hilde Vernaillen, Chair, ICMIF
VP and CEO of World Bank’s Multi-                   International, Marsh & McLennan            (International Cooperative and Mutual
Lateral Investment Guarantee Agency                 Amanda Blanc, CEO, Aviva Plc               Insurance Federation)
Co-Chair: Achim Steiner,                            Bart de Smet, Chairman, Ageas              Jad Ariss, Managing Director, Geneva
Administrator, United Nations                                                                  Association *
Development Programme                               Brian Duperreault, CEO, AIG
                                                                                               John Huff, President & Executive
IDF Secretary General: Ekhosuehi                    Christian Mumenthaler, CEO, Swiss Re       Director, ABIR (Association of
Iyahen, Insurance Development                       Denis Kessler, Chairman & CEO, Scor        Bermuda Insurers and Reinsurers) *
Forum*                                                                                         Josh Landau, President, IIS
                                                    Eric Andersen, President, Aon
                                                    Corporation                                (International Insurance Society)*
                                                    He Chunlei, Vice Chairman and              Michaela Koller, Secretary General,
                                                    President, China Reinsurance Group         GFIA (Global Federation of Insurance
                                                                                               Associations) *
                                                    Ian Brimecome, Chairman,
                                                    International, Tokio Marine Holdings       Shaun Tarbuck, CEO, International
                                                                                               Cooperative and Mutual Insurance
                                                    John Haley, CEO, Willis Towers
                                                                                               Federation (ICMIF) *
                                                    Watson
                                                                                               Rowan Douglas, Head of Climate &
                                                    John Neal, CEO, Lloyd’s of London
                                                                                               Resilience Hub, Willis Towers Watson*
                                                    Ken Mungan, Chairman, Milliman
                                                                                               Ivo Menzinger, Managing Director,
                                                    Michel Lies, Chairman, Zurich              Public Sector Business, Swiss Re*
                                                    Rob Wesseling, President & CEO,            Jan Kellett, Head, Financial Sector
                                                    Cooperators Group                          Hub and Team Leader, Insurance
                                                    Torsten Jeworrek, CEO Reinsurance,         and Risk Finance, United Nations
                                                    Munich Re                                  Development Programme*
                                                    Jürgen Zattler, Director General           Olivier Mahul, Practice Manager,
                                                    for International Development              Crisis & Disaster Risk Finance Unit,
                                                    Policy, 2030 Agenda and Climate,           Finance, Competitiveness and
                                                    BMZ (the German Federal Ministry           Innovations*
                                                    for Economic Cooperation and
                                                    Development)
                                                    Mami Mizutori, Special Representative
                                                    of the Secretary General for Disaster
                                                    Risk Reduction, UNDRR
                                                    Mark Carney, UN Special Envoy for
                                                    Climate Action and Finance, UK Prime
                                                    Minister's COP26 Finance Advisor
                                                    Mark Lowcock, Under-Secretary-
                                                    General for Humanitarian Affairs &
                                                    Emergency Relief Coordinator, UN
                                                    OCHA

*IDF Steering Committee Non-Voting Member (Ex-Officio)

                                                                                         IDF The Insurance Development Forum in 2020 | 15
2020 IDF Operating
Committee Membership

Chair: Rowan Douglas, Head of               Andre Belelieu, Head of Insurance      John Huff, CEO, ABIR (Association of
Climate & Resilience Hub, Willis            & Asset Management, WEF (World         Bermuda Insurers and Reinsurers)
Towers Watson                               Economic Forum)                        Katharine Pulvermacher, Executive
Co-Chair: Ivo Menzinger, Managing           Andy Jobst, Senior Economist,          Director, MiN (Microinsurance
Director, Public Sector Business,           European Department, IMF               Network)
Swiss Re                                    (International Monetary Fund)          Kathy Baughman McLeod,
Co-Chair: Jan Kellett, Head, Financial      Annette Detken, Head of ISF            Director, Adrienne Arsht Rockefeller
Sector Hub and Team Leader,                 (InsuResilience Solutions Fund)        Foundation Resilience Centre
Insurance and Risk Finance, United          Astrid Zwick, Head of InsuResilience   Lesley Ndlovu, CEO, African Risk
Nations Development Programme               Global Partnership Secretariat         Capacity Limited (ARC Ltd)
Co-Chair: Olivier Mahul, Practice           Bill Marcoux, Partner, WCM Advisory    Mamiko Yoko Arai, Head of
Manager, Crisis & Disaster                                                         Insurance, Directorate for Financial
Risk Finance Unit | Finance,                Bridget Gainer, Vice President,
                                            Global Affairs, Aon                    and Enterprise Affairs, OECD
Competitiveness and Innovations                                                    (Operation for Economic Cooperation
Global Practice, World Bank                 Butch Bacani, Programme Leader,        and Development
IDF Secretary General: Ekhosuehi            UNEP PSI (UN Environment
                                            Programme Principles for Sustainable   Marc Gordon, Head, Global Risk
Iyahen, Insurance Development                                                      Analysis and Reporting, UNDRR
Forum*                                      Insurance)
                                                                                   (United Nations Office for Disaster
                                            Claudia Thyme, Director, Strategic     Risk Reduction)
                                            Market Development, AXA XL
                                                                                   Martin Kipping, Head of Climate
                                            Claus Stickler, Managing Director,     Policy Division, BMZ (German Federal
                                            Allianz Investment Management          Ministry for Economic Cooperation
                                            Daniel Clarke, Director, Centre for    and Development)
                                            Disaster Protection                    Maryam Golnaraghi, Director,
                                            Eva Myers, Team Leader, DRF, Private   Climate Change and Emerging
                                            Sector Development Department,         Environmental Topics, Geneva
                                            FCDO (Foreign, Commonwealth and        Association
                                            Development Office)                    Masaaki Nagamura, General
                                            Fabio Bedini, Senior Programme         Manager International Initiatives,
                                            Adviser - Risk Transfer Team Lead,     Tokio Marine Holdings
                                            Climate and DRR Programmes Unit,       Michaela Koller, CEO, GFIA (Global
                                            (WFP) World Food Programme             Federation of Insurance Associations)
                                            Francis Bouchard, Group Head           Sabbir Patel, Senior Vice President,
                                            of Communication & Public Affairs,     ICMIF (International Cooperative and
                                            Zurich                                 Mutual Insurance Federation)
                                            Garance Wattez Richard, Head of        Shaun Tarbuck, CEO, ICMIF
                                            AXA Emerging Customers                 (International Cooperative and Mutual
                                            Hannah Grant, Head of A2ii (Access     Insurance Federation)
                                            to Insurance Initiative) Secretariat   Simone Ruiz-Vergote, Managing
                                            Ian Branagan, Chief Risk Officer,      Director, Allianz
                                            Renaissance Re                         Thomas Kessler, Principal Disaster
                                                                                   Risk Insurance & Finance Specialist,
                                                                                   ADB (Asian Development Bank)

16 | IDF The Insurance Development Forum in 2020
2020 IDF Partner Organisations

Private sector              JBA Risk Management       GCRF (Global Challenges          World Bank (Disaster Risk
                            KatRisk                   Research Fund)                   Financing & Insurance)
African Risk Capacity
                                                      Insurance Europe                 Programme
Insurance Company Limited   KPMG
                                                      KfW (German Development          World Bank MIGA
Ageas                       Lloyd’s of London
                                                      Bank)                            (Multilateral Investment
AIG                         Marsh & McLennan Co.                                       Guarantee Agency)
                                                      International Institutions
AIR Worldwide               Milliman
                                                      A2ii (Access to Insurance        Insurance industry
Allianz                     MS Amlin                  Initiative)                      associations
AON                         Munich Re                 ADB (Asian Development           ABIR (Association of Bermuda
Asia Affinity Solutions     Oasis LMF                 Bank)                            Insurers and Reinsurers)
Aviva                       Prudential                AFC (Africa Finance              Geneva Association
AXA and AXA XL                                        Corporation)
                            PwC                                                        GFIA (Global Federation of
AXCO                                                  Convergence Blended              Insurance Associations)
                            Renaissance Re            Finance
AXIS Capital                                                                           International Insurance
                            RMS                       GCA (Global Commission on        Society
Blackstone Impact           SCOR                      Adaptation)
Investment
                            Simplitium                International Monetary Fund      Reinsurance Association of
Blackstone Insurance                                                                   America
Solutions                   Swiss Re                  InsuResilience Global
                            Talbot                    Partnership
Blue Marble                                                                            Civil Society/
                            TetraTech                 InsuResilience Solutions         NGO/ Think Tank/
Cerulean Consulting                                   Fund
                            Tokio Marine Holdings                                      Foundations
China Reinsurance Group                               International Finance
                            WCM Advisory                                               Adrienne Arsht - Rockefeller
Chubb                                                 Corporation (IFC)
                                                                                       Foundation Resilience Center
Clyde & Co                  Willis Towers Watson      Micro Insurance Network
                                                                                       Cenfri (The Centre for
The Co-Operators Group      Xceedance                 OECD (Organisation for           Financial Regulation &
                            Zurich                    Economic Co-operation &          Inclusion)
CoreLogic
                                                      Development)
                                                                                       ClimateWise
DLA Piper
                            Government                UN DRR (United Nations
                                                                                       GEM (Global Earthquake
DWS                         institutions              Office for Disaster Risk
                                                                                       Model)
Fairfax                                               Reduction)
                            Bank of England                                            MCII (Munich Climate
FCM                                                   UN OCHA (United Nations
                            BMZ (German Federal                                        Insurance Initiative)
                                                      Office for the Coordination of
Guy Carpenter               Ministry for Economic     Humanitarian Affairs)            START Network
                            Cooperation and
Hamilton Re                 Development)              UNDP (United Nations             World Economic Forum (WEF)
Hannover Re                                           Development Programme)
                            Centre for Disaster
ICMIF (Intl. Cooperative    Protection                UNEP (United Nations             Academic institutions
and Mutual Insurance                                  Environment Programme)           The Institutes
                            FCDO (UK Foreign,
Federation)                 Commonwealth and          WFP (World Food                  Insurance Institute of India
ImageCat                    Development Office)       Programme)
JBA Consulting              GIZ (German development                                    Observers
                            agency)                                                    International Association of
                                                                                       Insurance Supervisors

                                                                      IDF The Insurance Development Forum in 2020 | 17
2020: Key Highlights
and Events
                                                   4

18 | IDF The Insurance Development Forum in 2020
2020: Key Highlights and Events

Finance in Common Summit:
the first global summit of public
development banks                        World Economic Forum:
The first edition of the Finance in      Building a More Resilient and
Common Summit underscored the            Sustainable World
crucial role of Public Development
                                         The IDF was recognised in the
Banks (PDBs) in reconciling short-
                                         launch of the WEF’s recent Action
term responses with sustainable                                                       Viewpoint: Public-private
                                         Plan on ‘Building a More Resilient and
recovery measures that will have a                                                    collaboration is essential to
                                         Sustainable World’ as a best practice
long-term impact on the planet and                                                    combat climate change
                                         example of how industry can partner
societies. By reconciling the entire
                                         with governments to engineer risk at         Denis Duverne (Chair, AXA Board
finance community in support of
                                         a societal level.                            of Directors and Chair, IDF)
common action for climate and the
UN Sustainable Development Goals,        “Building greater resiliency is a defining   contributed to the Climate Week
the Finance in Common Summit             mandate of our time where insurers           discussions about the role of insurers,
was a key milestone on the way to        can – and must - play a leadership role      infrastructure investments and
the crucial events of 2021, notably      as an industry and in more proactive,        regulation with Insurance Day in this
COP26, COP15 and the Generation          closer partnerships with government”,        article on public-private partnerships
Equality Forum.                          declared the report.                         for resilience.
Denis Duverne (IDF Chair and Chair,
AXA Board of Directors), Ekhosuehi
Iyahen (IDF Secretary General),
John Haley (IDF Steering Committee
member and CEO of Willis Towers
Watson) and Maria Flachsbarth
(Parliamentary State Secretary of
Germany’s BMZ, and signatory to the
IDF’s Tripartite Agreement at the UN
Climate Action Summit 2019), gave
remarks during High Level Event 5:
Accelerating Investment for Climate
Adaptation and Resilience.
Achim Steiner (UNDP Administrator
and IDF Co-Chair) gave remarks
during High Level Event 3: Human
Security in Fragile Settings: Scaling-
Up Humanitarian and Resilience
Investment.

                                                                               IDF The Insurance Development Forum in 2020 | 19
Association of Bermuda
                                             Insurers and Reinsurers (ABIR)
World Bank Group’s                           Climate Week event
Financial Protection
Forum webinar series                         To celebrate International Climate Day,     InsuResilience Global
                                             ABIR hosted a climate risk Webinar          Partnership Annual Forum
The Financial Protection Forum               provide on insight into how Bermuda’s
series is jointly organised the              rich history as a Natural Catastrophe       The InsuResilience Global Partnership
World Bank Group’s Finance,                  Hub is transitioning into the World’s       and the InsuResilience Solutions Fund
Competitiveness and Innovation               Climate Risk Capital. Speakers              (ISF) are essential partners of the
Practice and the European Space              includded IDF SteerCo Member, Albert        IDF and its work. The InsuResilience
Agency (ESA)’s Center for Earth              Benchimol (President & CEO, AXIS            Global Partnership Vision 2025 goal
Observation. The first event in the          Capital Holdings Ltd), John Huff, (CEO,     of covering 500 million poor and
World Bank’s new series focused on           ABIR), Marc Grandisson (President &         vulnerable people against climate and
Earth Observation and Big Data for           CEO, Arch Capital Group Ltd), Stephen       disaster shocks by pre-arranged risk
Improved Financial Resilience.               Weinstein (Executive Vice President,        finance and insurance mechanisms
                                             General Counsel and Corporate               is at the centre of the IDF’s Tripartite
Ekhosuehi Iyahen (IDF Secretary
                                             Secretary, RenaissanceRe Holdings           Agreement (with BMZ and UNDP),
General) featured as a panelist in a
                                             Ltd) and Ekhosuehi Iyahen (Secretary        and the goal of covering 150 million
session exploring how technology
                                             General, IDF).                              people against climate and disaster
can support innovative risk financing
                                                                                         risks with microinsurance is at the
solutions for climate shocks and other
                                                                                         heart of the IDF Inclusive Insurance
complex risks event, highlighting IDF’s
                                                                                         Working Group’s strategy.
public-private work in this critical area.
                                                                                         The IDF was well-represented across
                                                                                         all 4 days of the conference, with
                                                                                         speakers including Denis Duverne
                                                                                         (IDF Chair and Chair, AXA Board of
                                                                                         Directors), Ekhosuehi Iyahen (IDF
                                                                                         Secretary General), Kathy Baughman
                                                                                         McLeod (Director of the Arsht-
                                                                                         Rockefeller Resilience Centre at the
                                                                                         Atlantic Council and IDF Operating
                                                                                         Committee member), Eva Myers
                                             A2ii – IAIS Pandemic Risk
                                                                                         (Team Leader, Disaster Risk Finance,
                                             Webinar Series
                                                                                         UK FCDO, and IDF Operating
                                             The Access To Insurance Initiative (A2ii)   Committee member), Annette Detken
Aon: Collaborating to Close the              in partnership with the International       (Head of ISF and IDF Operating
Protection Gap                               Association of Insurance Supervisors        Committee member), Claudia
AON hosted a day of discussion               (IAIS) convened a three part webinar        Thyme (Director, Emerging Markets
and inspiration focused on the               series on pandemic risks. The IDF was       Development, AXA XL, IDF Operating
theme ‘Collaborating to Close                featured during the convening focused       Committee member and Co-Chair of
the Protection Gap’ in February              on public-private partnerships and          the IDF Sovereign & Humanitarian
2020. The event was convened in              where discussions focused on private        Solutions Working Group) and
collaboration with British Red Cross,        sector perspectives on the impact of        Astrid Zwick (Head of InsuResilience
partners City of London, ClimateWise         the pandemic and their role in building     Secretariat, IDF Operating Committee
and IDF. Denis Duverne (AXA and              greater resilience for the future           member and Co-Chair of the IDF
IDF, Chairman) delivered a keynote           through insurance solutions. Input was      Inclusive Insurance Working Group.
speech on the work of the IDF.               drawn from an expert panel consisting
                                             of Julian Enoizi (CEO, Pool Re),
                                             Ekhosuehi Iyahen (Secretary General,
                                             IDF) and John Huff (CEO, ABIR).

20 | IDF The Insurance Development Forum in 2020
Insurance Journal: The
                                                                                      Insurance Development Forum
                                                                                      Launches Insurance Program
IDF Roundtable Event:
                                                                                      for Peruvian Schools
The Development Impact
of Risk Analytics                                                                     The Insurance Journal published a
                                                                                      piece on the IDF’s landmark public-
Following the launch of the IDF
                                                                                      private partnership project in Peru,
Development Impact of Risk Analytics        Financing Climate Disasters:              led by AXA XL and Munich Re alongside
report, led by the IDF’s Risk Modelling     The UK government’s climate               the Peruvian Association of Insurance
Steering Group, this event brought          challenge, and how risk                   Companies (APESEG) to provide the
together key stakeholders from both         management can help                       Peruvian government with options to
the public and private sector to further
                                                                                      cover its 50,000 public schools against
discuss and leverage its findings.          Ekhosuehi Iyahen (IDF Secretary
                                                                                      the impact of disasters. The start of
                                            General) joined Daniel Clarke
The report investigates and                                                           the Peruvian Public Schools project
                                            (Director, Centre for Disaster
unpacks the importance of risk                                                        marks the first country execution
                                            Protection and IDF Operating
insight in building resilience and                                                    under the “Tripartite Agreement”
                                            Committee member) for this
growing economies, and in advancing                                                   between the IDF, the German Federal
                                            important discussion convened by the
humanitarian action. It makes                                                         Ministry for Economic Cooperation
                                            Government Actuary's Department &
recommendations on how sovereign                                                      and Development (BMZ) and United
                                            Civil Service Environment Network.
and city decision-makers can develop                                                  Nations Development Programme
their own view of risk, as a foundation     Developing better national disaster       (UNDP).
of an effective, inclusive risk strategy,   risk management and financing
                                                                                      “The chance that this project provides
and it places the insurance industry        systems requires engaging directly
                                                                                      to consider alternative options for
at the heart of this work. Speakers         with those on the frontline of building
                                                                                      an insurance solution, developed
included:                                   and managing these systems. The IDF
                                                                                      by global reinsurance companies in
                                            was therefore very pleased to engage
 Eric Andersen, President, Aon plc                                                   partnership with APESEG, is extremely
                                            with the UK Civil Service network to
 Mami Mizutori, Special                                                              valuable for Peru. It will allow the
                                            share knowledge and perspectives
  Representative of the Secretary                                                     government to make choices that
                                            from the insurance industry and on
  General, UN Office for Disaster                                                     can help it to increase its resilience
                                            public-private endeavours in Disaster
  Risk Reduction                                                                      to catastrophic events,” said Eduardo
                                            Risk Financing, and to identify ways to
                                                                                      Morón Pastor, president of APESEG.
 Daniel Clarke, Director, Centre for       work together in the future.
                                                                                      The IDF is focused on producing
  Disaster Protection (and Co-Chair of                                                tangible benefits and meaningful
  the IDF Sovereign & Humanitarian                                                    solutions at scale that help build
  Solutions working group)                                                            resilience to climate change in the
 Ekhosuehi Iyahen, Secretary                                                         most vulnerable countries and
  General, Insurance Development                                                      sectors, and there is certainly scope
  Forum                                                                               for further application of the tripartite
                                                                                      project approach in other countries
 Ian Branagan, Chief Risk Officer,
                                                                                      and sectors such as agriculture, and
  Renaissance Re (and Co-Chair
                                                                                      public infrastructure.
  of the IDF's Risk Modelling
  Steering Group)

                                                                                IDF The Insurance Development Forum in 2020 | 21
The Economist’s Climate Risk
Virtual Week
The Economist calls for a clear-
headed approach to tackling the             International Conference on
complex issues around climate               Inclusive Insurance 2020
change. Following 2019’s inaugural
Climate Risk Week, 2020’s virtual event     The International Conference on
explored the unique opportunity             Inclusive Insurance 2020 – Digital
which the pandemic has provided             Edition was co-organised by the
to governments and businesses to            Microinsurance Network (MiN) and
speed up the transition to a low carbon     the Munich Re Foundation, amassing
economy. In addition, participants          a record of over 2,000 registrations
heard about multiple risks, evolving        from 127 countries. The virtual
regulatory and disclosure frameworks,       conference featured more than 60         Green Horizon Summit: the
with a focus on climate-related data        speakers across 18 sessions over 5       pivotal role of finance
and the road to COP26.                      days sharing knowledge and insights
                                                                                     The City of London Corporation, in
                                            across the inclusive insurance world.
Mark Carney (UN Special Envoy for                                                    collaboration with the Green Finance
Climate Action and Finance, the Prime       The event marked the launch of the       Institute, and supported by the World
Minister's Finance Adviser for COP26        Landscape of Microinsurance 2020         Economic Forum, hosted a major
and IDF Steering Committee member)          study, focusing on 30 countries in       summit in November that focused
provided opening remarks at the event.      Africa, Asia and Latin America and       on the role of green finance in the
                                            providing a unique benchmark for all     recovery from COVID-19.
Mami Mizutori (Special Representative       stakeholders in the field of inclusive
of the Secretary General for Disaster                                                Taking place on the original dates
                                            insurance. The research is intended
Risk Reduction, UNDRR and IDF                                                        of the postponed COP26, the event
                                            to improve the supply of insurance
Steering Committee member) spoke                                                     featured a keynote speech from
                                            products and services designed
about the “new normal” we are all                                                    Mark Carney (UN Special Envoy for
                                            to help vulnerable, low-income
living in, and the spotlight COVID-19                                                Climate Action and Finance, the
                                            households and MSMEs to enhance
has placed on the urgent need for                                                    Prime Minister's Finance Adviser for
                                            financial resilience for developing
more resilient systems and global                                                    COP26 and IDF Steering Committee
                                            countries.
infrastructure.                                                                      member) focusing on the role of
                                            The MicroInsurance Network is a          private sector finance in supporting
Ekhosuehi Iyahen (IDF Secretary             key partner of the IDF’s. Among the      a green recovery from COVID-19
General) spoke as a panelist alongside      esteemed participants were keynote       and an economy-wide transition to
Maryam Golnaraghi (Director of              speaker Achim Steiner (UNDP              net zero. The event convened high
Climate Change and Emerging                 Administrator and IDF Co-Chair) and      level public and private sector actors
Environmental Topics at the Geneva          Denis Duverne (AXA Chairman and          to showcase the ambition across
Association and IDF Operating               IDF Chair), in addition to Garance       the financial community in the year
Committee member), on measuring,            Wattez-Richard (Head of AXA Emerging     leading to COP26 in Glasgow. The
managing and mitigating the threat          Customers and Co-Chair of the IDF’s      Green Horizon Summit also saw the
of climate change, and the role of the      Inclusive Insurance Working Group),      launch of the Priorities for Private
insurance industry in these activities.     Katharine Pulvermacher (Executive        Sector Finance for COP26 strategy
Kathy Baughman McLeod (Director             Director at the MicroInsurance           and report.
of the Arsht-Rockefeller Resilience         Network and IDF Operating
Centre at the Atlantic Council and IDF      Committee member), Wolfgang
Operating Committee member) spoke           Buecker (Head of Sector Programmes
as a panelist on the unique position of     and Access to Insurance, GIZ, and IDF
the insurance industry to understand,       Operating Committee member), and
price and transfer risks – both physical    Jan Kellett (Special Adviser, Finance
and financial – and the importance          Sector Hub, UNDP and IDF Operating
of leveraging private sector tools to       Committee Co-Chair).
reduce human and economic suffering.

22 | IDF The Insurance Development Forum in 2020
Insurance Development
                                           Forum and COP 26 Private                 IDF Leadership Roundtable
                                           Finance Hub Leadership                   Event - Insuring Systemic
                                           Roundtable Mobilising the                Resilience: Mobilising public-
                                           insurance industry towards               private insurance action to
                                           COP 26: Defining Adaptation &            deliver pandemic and climate
                                           Resilience Commitments                   resilience
                                           The IDF in partnership with the          On 15th July 2020, the IDF and
                                           COP26 Private Finance Hub convened       Climate Policy Initiative jointly hosted
Extreme Heat Resilience                    a Leadership Roundtable focused          a roundtable event, drawing leading
Alliance: reducing extreme heat            on the theme ‘Mobilising the             voices from across public and
risk for vulnerable people                 insurance industry towards COP26:        private sectors to debate the crucial
                                           Defining Adaptation & Resilience         intersections between climate risk,
The IDF was proud to be one of 30
                                           commitments’. The event was co-          pandemic risk, financial resilience,
global partners brought together by
                                           hosted by Denis Duverne (AXA and         and the role of insurance.
the Atlantic Council’s Adrienne Arsht-
                                           IDF Chair) and Mark Carney, (UN
Rockefeller Foundation Resilience                                                   The esteemed panel included:
                                           Special Envoy on Climate Action and
Center to announce the formation of
                                           Finance and UK Prime Minister's           Hon. Mia Amor Mottley, QC., MP,
the Extreme Heat Resilience Alliance
                                           COP26 Finance Advisor).                    Prime Minister, Barbados
(EHRA).
                                           The focus was to identify tangible        Ingrid Gabriela Hoven, Director
Heat waves are one of the biggest
                                           and practical solutions which the IDF      General, BMZ
climate-related threats to human
                                           and broader insurance development         Anshula Kant, Managing Director
health but rarely command the same
                                           community can deliver at COP26             and CFO, World Bank Group
attention as more visibly devastating
                                           in Glasgow.
disasters such as tropical storms                                                    Denis Duverne, Chairman , AXA
or hurricanes. In the US, heatwaves                                                   Group & IDF
occur roughly six times a year, up
from just two in the 1960s, and kill                                                 Christa Schwimmer, Head of
more people than hurricane- and                                                       Corporate Client Management
flood-related deaths combined. In the                                                 Munich Re
past two decades they have claimed                                                   Ekhosuehi Iyahen, Secretary
tens of thousands of American lives.                                                  General, IDF
Asking the question ‘Is it time to start                                             Vikram Widge, Senior Advisor,
naming heatwaves like hurricanes?’,                                                   Climate Policy Initiative
the EHRA proposes that the naming                                                    Rowan Douglas CBE, Head of
and ranking of heatwaves all over the                                                 Climate and Resilience Hub, WTW
world will, for the first time, convey                                                & Chair, IDF Operating Committee
the true nature of the threat heat         Allianz Understanding Climate
poses .                                    Risks stakeholder dialogue and           In a joint IDF-CPI blogpost shared by
                                           award ceremony                           UNDRR’s Prevention Web and the
                                                                                    Green Finance Platform, Ekhosuehi
                                           Ekhosuehi Iyahen (IDF Secretary          Iyahen, IDF Secretary General, and
                                           General), joined Simone Ruiz-Vergote     Vikram Widge, Climate Policy Initiative,
                                           (Allianz) and Ivo Menzinger (Swiss Re)   shared reflections on the four key
                                           to speak as panelists on how insurers    elements of the dialogue, including
                                           respond to climate risks and the         the deep resilience financing gaps,
                                           role of public-private partnerships in   the role of insurers as part of the
                                           building best practice examples.         solution, the need for further public-
                                                                                    private action at scale, and the role
                                                                                    of collective political will in driving
                                                                                    meaningful action. A full recording of
                                                                                    the event is available online.

                                                                              IDF The Insurance Development Forum in 2020 | 23
2020 for the Working Groups
                                                   5

24 | IDF The Insurance Development Forum in 2020
2020 for the Working Groups

Sovereign and Humanitarian Solutions (SHS) Working Group

Leadership/membership:

 Ivo Menzinger                           Daniel Clarke                            Claudia Thyme
 Head, EMEA & Product                    Director,                                Director, Strategic Market
 Management, Swiss Re                    Centre for Disaster Protection           Development, AXA XL
 Private Sector WG Co-Chair              Public Sector WG Co-Chair                Private Sector WG Deputy Chair

Working group member organisations
Allianz Re, Aon, Asian Development Bank, AXA XL, AXA Climate, Axis, BMZ, Centre for Disaster Protection,
Cerulean Consulting, DfID, GIZ, Guy Carpenter, Hannover Re, InsuResilience Global Partnership, KfW, Munich Re,
Renaissance Re, Scor, START Network, Swiss Re, TetraTech, UN OCHA, UNDP, Willis Towers Watson, World Bank
Group and Zurich Insurance Plc.
We are delighted to formally welcome the African Risk Capacity (ARC) and World Food Programme (WFP) as official
members of the working group in 2020, represented by Lesley Ndlovu (CEO, Africa Risk Capacity), and Fabio Bedini
(Senior Programme Advisor, Risk Transfer Team Lead, WFP).

Background and mandate:                                       Strategic priorities:
The overarching objective of the Sovereign and                The Working Group’s main measure of success is the
Humanitarian Solutions (SHS) Working Group is to reduce       delivery of new risk financing instruments.
the protection gap in vulnerable and climate-exposed          Workplans and strategy are informed by the following
geographies through the implementation of new risk            priority areas, as mentioned in the SHS Working Group’s
financing instruments. The SHS Working Group focuses          Terms of Reference:
on supporting (sub-) sovereign and humanitarian actors in
developing such financing tools, aligning goals and efforts   i. Transaction development,
with public sector partners such as the Centre for Disaster   ii. Innovation and product development,
Protection (CDP), the InsuResilience Solutions Fund (ISF)
                                                              iii. Capacity building, and
and the Global Risk Financing Facility (GRiF).
                                                              iv. Information flow and coordination across members.

                                                                             IDF The Insurance Development Forum in 2020 | 25
The Tripartite Agreement

The Tripartite Agreement between                   countries, bringing together private       already received 50% funding from
the IDF, UNDP and BMZ signed in                    sector IDF members and UNDP                ISF and kicked off in September 2020.
September 2019 remains at the                      country offices on the ground.             Alongside this, the official formation of
heart of the IDF’s strategy and                    These meetings demonstrated                a physical Project Coordination Unit
priorities. With assistance from                   huge openness for collaboration,           (PCU) was completed, providing an
other IDF Working Groups (including                and significant market appetite and        essential source of coordination and
the Risk Modelling (RMSG) and Law,                 resource for this work. Significant        support for the public-private project
Regulation & Resilience Policies                   engagement and commitment                  teams, completed by the hiring of two
(LRRP) groups), the IDF’s Sovereign &              from the insurance industry saw            Project Managers. We are pleased
Humanitarian Solutions (SHS) working               teams being formed for 12 of the           to welcome Norah Becerra and Katja
group leads on the execution of the                21 target countries for the Tripartite     Friess to these posts in Frankfurt.
Agreement’s goal: to bring technical               Programme already in 2020, which           The PCU, established after much
assistance and risk financing                      have identified opportunities for          consultation between the governing
tools to 20 climate-vulnerable                     insurance programmes to propose            parties of the Tripartite Agreement
countries by 2025, in line with the                to the respective Governments. Many        (IDF, UNDP and BMZ) along with the
InsuResilience Global Partnership                  have initiated engagement with the         ISF (InsuResilience Solutions Fund),
Vision 2025.                                       relevant Government agencies, while        is a great achievement and is already
Over the summer, virtual meetings                  a project to develop an insurance          enabling real traction as we move
were held with 15 of the 20 shortlisted            programme for Peru’s public schools        forward with the Tripartite projects.

The Tripartite programme of work aims to increase insurance protection in climate-exposed countries in
line with the InsuResilience Vision 2025 goals. Its goal is to provide technical assistance and risk solutions
to 20 climate-vulnerable countries by 2025.

                   BMZ
                   - Financing with a commitment of €20 million
                   - Strategic partner to steer work
                   -   Technical support
                                                                                                 These organisations will...
                                                                                              Contribute to providing resilience against
                   IDF
                                                                                              disaster and climate shocks for 500 million
                   - Dedicated industry-led team of IDF representatives for                                   individuals
                     each country project
                                                                                            Increase the percentage of annual climate and
                   - Risk modelling platform and risk insights
                                                                                             disaster losses covered by pre-arranged risk
                   - Risk transfer solutions                                                     finance and insurance mechanisms
                   - Co investment with BMZ
                   - US $5 billion in offered risk capacity

                   UNDP
                   - Country-level convening and project management
                   - Diagnostic reviews of risk financing in countries
                                                                                     The United Nations Development Programme, Germany, and
                   - Legislating, regulatory technical assistance                    the insurance industry are bringing together risk management
                   - Integration of risk analytics into country development and      expertise and capital to address climate change resilience for
                     financial frameworks                                            the world’s most vulnerable countries.

The implementation of the Tripartite is also supported by the IDF RMSG (Risk Modelling Steering Group) and LRRP (Law,
Regulation and Resilience Policies Working Group).

26 | IDF The Insurance Development Forum in 2020
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