The Global Shield Programme for Resilient Risk Pools, a support mechanism of the Global Shield Solutions Platform was launched at the 28th United Nations Climate Change Conference, COP28, on 3 December 2023.
In an effort to bolster innovative approach to disaster preparedness and financial resilience, the Global Shield Solutions Platform (GSSP) has launched the Global Shield Programme for Resilient Risk Pools (GSRRP). A range of support for Climate and Disaster Risk Finance and Insurance (CDRFI) interventions are offered to Regional Risk Pools to access individually or jointly.
Regional Risk Pools offer a unique value proposition combining rapid financial resources with comprehensive risk management benefits. These pools serve as localised mechanisms that enable member countries to pool resources, share risks, and collectively manage the financial impact of disasters. By aggregating risks across diverse nations, they mitigate the burden on individual countries when disasters strike, enhancing their capacity to respond effectively.
Hon. Tiofilusi Tiueti, Tonga’s Minister of Finance said:
“Regional Risk Pools emerge significant to address climate risks, to reduce expenses, to scale up disaster response, and invest in climate resilience. International cooperation becomes crucial in this context, let’s work together for great, strong, efficient and fair Regional Risk Pools.”
Over the past two decades, four prominent Regional Risk Pools have been established, each catering to distinct regions:
CCRIF SPC (formerly The Caribbean Catastrophe Risk Insurance Facility): Serving the Caribbean and Central America.
ARC - African Risk Capacity: Extending services to member states of the African Union.
PCRIC - Pacific Catastrophe Risk Insurance Company: Catering to Pacific Island countries.
SEADRIF - Southeast Asia Disaster Risk Insurance Facility: Offering services to all ASEAN+3 countries.
The GSRRP offers a single access route to pooled funding that Regional Risk Pools can access directly and according to their own needs.
Donors contributing to the Global Shield Solutions Platform (Denmark, EU Commission, France, Germany, Ireland, and Luxembourg) reiterated their sustained support for the regional risk pools as an essential element for closing the protection gap in vulnerable countries. Climate risk insurance offered by risk pools represents a pragmatic and actionable funding solution to vulnerable countries that can be potentially further scaled up with the new Loss & Damage Fund.
Furthermore, donors announced additional contributions to the Global Shield Solutions Platform: the EU Commission commits 30m EUR, France contributes another 20m EUR in addition to earlier committed 20m EUR. Luxembourg contributes 3m EUR in additional to Ireland’s contribution of 5m EUR joining the group of contributors just before COP28.
Dr. Astrid Zwick, Co-Director of the Global Shield Secretariat said:
“There is a longstanding collaboration of actors in the CDRFI space, including the Frankfurt School and Regional Risk Pools. With the Global Shield, we can take this collaboration to the next level. As one of the financing vehicles, the GSSP fosters the development of needs-based and demand-driven sustainable solutions in a targeted way.”
Isaac Anthony, CEO CCRIF SPC said:
"The amount of risk exposure of countries participating in CCRIF exceeds $1.2 billion USD, actually more than double the initial estimate, and it is likely that the frequency and intensity of meteorological events will increase more. This is where the Global Shield Programme for Resilient Risk Pools comes in; we want to close the gap by providing additional resources to our countries and to the risk pools.”
Lesley Ndlovu, CEO African Risk Capacity said:
“The Global Shield Programme for Resilient Risk Pools can help us deliver at scale, diversify, and become more responsive and efficient.”
Mr. Aholotu Palu, CEO Pacific Catastrophe Risk Insurance Company said:
“We share common challenges among the risk pools. We hope the GSSP can help improve affordability through premium support and technical capacity building.”
Mr. Yoshihiro Kawai, Chair SEADRIF Insurance Company said:
“The Global Shield Regional Risk Pools Programme is an important new source of support for risk pools to rapidly respond to emerging opportunities and needs. The focus on enabling joint solutions with our partner risk pools is especially valuable to bring more efficient capital, technical innovation, and knowledge to our member countries. It is crucial that the program's operational implementation maintains the flexibility and responsiveness that allows efficient solutions in the face of growing climate risks.”