Strengthening Financial Resilience in the Face of Climate Change: Comoros Takes a Crucial Step
Introduction
The Union of the Comoros has launched a diagnostic study on inclusive insurance and risk financing to enhance its economic and social resilience in the face of climate change-related disasters. This initiative, facilitated by the United Nations Development Programme (UNDP) and Milliman, aims to strengthen insurance coverage and financial capacities of the country.
The Challenge: Climate Change Vulnerability
The Comoros is one of the most vulnerable countries to natural disasters and climate change, with recent cyclones, floods, landslides, and volcanic eruptions having significantly affected its growth. The government has had to mobilize substantial resources to meet immediate reconstruction needs, resulting in considerable economic setbacks.
Addressing Challenges through Innovative Solutions
- Parametric Insurance: The Comorian government has subscribed to the African Risk Capacity for parametric insurance against tropical cyclones, demonstrating its commitment to protecting populations and infrastructure against climatic hazards.
- Diagnostic Study: This study aims to better understand the risks faced by the Comoros and identify effective solutions to address them.
Inclusive Approach: Promoting Gender Equality
The Insurance and Risk Financing Facility (IRFF) adopts an inclusive approach that promotes gender equality in strengthening resilience. The IRFF will work to:
- Strengthen Regulatory and Institutional Capacity: Develop regulatory frameworks and institutional capacity development to support the growth of insurance markets.
- Invest in Advocacy, Training, and Education: Provide training and education on risk management and climate change resilience to vulnerable communities.
Commitment to Sustainable Development Goals
The Comoros is committed to achieving the Sustainable Development Goals by focusing on protecting vulnerable populations and ecosystems. UNDP, through the IRFF and with funding from Germany, is supporting the country in this effort.