Lloyd's of London has joined forces with the United Nations Capital Development Fund (UNCDF) in an effort to enhance insurance accessibility for countries vulnerable to climate change impacts, with an initial focus on Fiji and Pacific island nations.
The UN fund and Lloyd's, which chairs the Insurance Task Force of the Sustainable Markets Initiative, declared their collaboration to develop insurance products that enhance financial resilience against climate-induced shocks in small island developing nations and least developed countries.
“Insurance can serve as a powerful tool, not only in support of climate resilience, but also to secure the delivery of the Sustainable Development Agenda in the world’s most vulnerable countries. To deliver on this promise, we will need innovation and collaboration,” UNCDF officer-in-charge Mourad Wahba said in a Reuters report.
In addition to focusing on the Pacific initially, Lloyd's and the UNCDF will advocate for public-private collaborations to bridge the protection gap and address policy-related obstacles hindering climate risk insurance.
Following the initial focus on the Pacific region, the partnership aims to extend this model to Asia and specific regions of Africa. John Neal, CEO of Lloyd's, said that collaborating with the UN would assist in developing “a coordinated global effort to mitigate climate and natural catastrophe risks.”
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