HOW GSSP WORKS

Fostering Reliable Disaster Preparedness And Response

The GSSP fosters the development of needs-based and financially sustainable climate risk finance and insurance solutions in developing and emerging countries, thus increasing the resilience and the capacity of developing countries to deal with the losses and damages caused by climate change. The aim is to develop and implement Climate and Disaster Risk Finance and Insurance (CDRFI) solutions that provide vulnerable people and authorities financial resources that they urgently need, when a disaster strikes.

The GSSP supports needs-based CDRFI solutions by supporting all activities along the value chain, including:

Supporting comprehensive climate risk analysis, data and modelling support, as well as project related research as a vital basis for defining needs-based climate risk management and finance strategies as well as to inform the GSSP in the further development of its strategic focus.
Funding studies and providing advice for the design and development of new concepts and solutions for CDRFI solutions taking into account the specific needs of the poor and vulnerable population.
Supporting the implementation of innovative climate risk finance and insurance solutions including SMART Premium and Capital support.

Building on proven structures of public-private partnerships developed within the InsuResilience Solutions Fund, the GSSP will leverage the private sector expertise and experience. Offering countries access to the capacity and capabilities of different insurance market actors and intermediaries including insurers, reinsurers, brokers, risk modellers, and service providers but also partners from academia, civil society and the humanitarian sector, the GSSP helps countries to find the best-fit solution.

Three central components of GSSP Support

Research and Education

Project related research and education is a vital basis for governments, businesses and households to become more proactive risk managers and take informed decisions in defining needs-based climate risk management and adaptation strategies. The GSSP aims to overcome existing barriers in climate risk understanding by commissioning external partners and programmes to provide risk assessments, technical assistance and capacity building on the imminent protection gap and resulting needs for financial protection against climate and disaster risks, including:

Closing identified risk modelling and data gaps in partner countries building on stocktakes and gap analyses conducted within the in-country dialogue or within predefined global thematic context.
Supporting the availability of quality assured data and risk models fostering open-access risk model and data platforms in close cooperation with existing global initiatives and respective risk assessment platforms such as GFDRR, GRMA, UNDRR, CLIMADA and OASIS.
Enhancing local capacities and expertise of climate and disaster risk analysis and CDRFI in a joint learning process using climate risk models and tools. This empowers countries to develop local capabilities in assessing current and future climate risks as well as expected impacts on vulnerable populations, infrastructure, economic development and specific sectors.
Offering trainings on CDRFI product and solutions development.
Supporting research on the impacts of CDRFI solutions as a continuous learning process and guidance for an effective and efficient support.

Concept Solutions and Development

The GSSP supports Global Shield partner countries to develop specific CDRFI solutions addressing the specific needs of the poor and vulnerable population. Through an open and competitive process, the GSSP aims to select the best-fit support from different CDRFI institutions and programmes. The GSSP will ensure the solutions presented are coherent, complementary, and follow common principles and standards.

Implementation Support

The GSSP will foster CDRFI solutions through (co-)financing the implementation of different financing instruments or (co-)funding for the capitalisation of national and subnational disaster risk vehicles as a means to financially support CDRFI solutions. With the focus on these activities the GSSP will foster CDRFI solutions such as:

Risk retention mechanisms (i.e. national /regional risk management funds, risk-sharing networks)
Risk transfer solutions (i.e. crop insurance, business interruption insurance, CAT-bonds, insurance of public and critical infrastructures, parametric sovereign insurance against natural hazards, insurance wrappers for concessional finance, forecast-based finance solutions).

Key features of the GSSP

The GSSP offers a needs-based approach.

As a service platform, the GSSP represents an impartial partner, guiding countries in their understanding of their climate and natural hazard risks and identifying the support needed to address country-specific challenges, in an inclusive manner. The GSSP also offers detailed insight in CDRFI risk analysis and structuring needs-based country programmes for CDRFI solutions. Based on these articulated needs and demand, the GSSP will structure and (co-)finance tailor-made country support programmes taking into account other sources of CDRFI finance.

Support is not limited to the sovereign level, but offers solutions at the macro, meso and micro levels for specific target groups (e.g., farmers, households, SMEs), regions and communities.

The GSSP offers a competitive and flexible approach.

The GSSP will hold competitive calls for proposals in order to identify the best-fit CDRFI proposal and qualified CDRI implementation partners. Based on the country´s request for CDRFI support submitted, the GS-SP will invite a wide range of stakeholders to propose solutions adequate to address the defined financing gap. The GSSP will assess submitted proposals against its eligibility and selection criteria in order to select the best solution in close coordination with the respective partner country.

This competitive and flexible approach helps maximise value for money for donors and partner countries by offering countries a single entry-point to a wide spectrum of implementing partners, existing CDRFI and institutions, including the private sector, NGOs, humanitarian agencies, and civil society.

The GSSP offers a competitive and flexible approach.

Government representatives are involved and engaged in the decision-making process, offering national ownership for all solutions. They are represented in the governing structure and will be involved in selecting the proffered technical solutions to be funded by GSSP.

Support will also consider and address gender disparities and discrimination to ensure gender equality is part of the solution.

The GSSP offers a bundling approach.

The GSSP provides a single-entry point to different sources of funding, ensuring transparency and coordinated and coherent CDRFI support under international common standards and principles agreed upon by the Global Shield against Climate Risk Initiative and InsuResilience Global Partnership.