Prioritising climate threats to inform risk financing and insurance solutions
The challenge
Funding from the Asia-Pacific Climate Finance Fund (ACliFF) and the Global Environment Facility (GEF) is supporting the implementation of the Asian Development Bank’s (ADB) Technical Assistance (TA) on building coastal resilience through nature-based and integrated solutions.
The project objective is to demonstrate the applicability of a coral reef finance, insurance and risk management model in targeted, high-opportunity sites in four ADB member countries (Indonesia, Philippines, Fiji and Solomon Islands). The outcomes aim to enable large-scale finance to increase the climate resilience of coastal businesses, communities and livelihoods.
The solution
As part of the appointed consortium, Swiss Re provided an assessment of current and future climate risk impacts for each country and recommendations of appropriate risk management and insurance solutions.
The climate risk modelling and associated insights, including quantifying the exposure and susceptibility of damages to reefs from extreme weather events (e.g., wind, storm, flood, temperature), will support the design and structuring of effective index-based risk transfer instruments.
The agreed deliverables included a comprehensive report and stakeholder workshops that highlighted the key risks of the selected reef areas to climate change and recommended risk management and insurance approaches.