The Insurance Development Forum (IDF), a public-private partnership led by the insurance industry and supported by international organizations, announced the launch of an insurance program for Peru’s public schools.
The program is the result of a grant agreement between Germany’s InsuResilience Solutions Fund (ISF) and an IDF project consortium, which will jointly fund the project to design the insurance program.
The project will provide the Peruvian government with options to cover all or a subset of its more than 50,000 public schools against the impact of natural disasters and aims to improve continuity for children’s education by accelerating reconstruction, while also strengthening the country’s resilience.
The program will be delivered by an IDF project consortium led by AXA XL and Munich Re, which includes the Peruvian Association of Insurance Companies (APESEG) as initiator of the project, as well as risk modelers GEM Foundation and JBA Risk Management and the insurtech Picsure.
The start of the Peruvian Public Schools project marks the first country execution under the so-called “Tripartite Agreement”between the IDF, the German Federal Ministry for Economic Cooperation and Development (BMZ) and United Nations Development Programme (UNDP). This agreement was officially signed in September 2019, during the United Nations Secretary General’s Climate Action Summit. (See below for further details about the agreement).
This three-way partnership is committed to provide funding, technical assistance and risk solutions to 20 climate vulnerable countries by 2025 by leveraging the risk management expertise and capacities that the private sector and insurance markets can offer. In close collaboration with the public sector, the partnership aims to address the increasing impacts from climate change.
“The chance that this project provides to consider alternative options for an insurance solution, developed by global reinsurance companies in partnership with APESEG, is extremely valuable for Peru. It will allow the government to make choices that can help it to increase its resilience to catastrophic events,” said Eduardo Morón Pastor, president of APESEG.
“Innovative public-private partnerships between the insurance sector and governments can enable and optimize the use of insurance and its related risk management capabilities to build greater resilience and protection for people, communities, businesses, and public institutions that are vulnerable to disasters and economic shocks,” said IDF Secretary General Ekhosuehi Iyahen.
“The IDF is focused on producing tangible benefits and meaningful solutions at scale that help build resilience to climate change in the most vulnerable countries and sectors,” she added. “We see scope for further application of the tripartite project approach in other countries and sectors such as agriculture, and public infrastructure.”
About the IDF
The IDF is a public/private partnership led by the insurance industry and supported by international organizations. The IDF was first announced at the United Nations Conference of the Parties (COP21) Paris Climate summit in 2015 and was officially launched by leaders of the United Nations, the World Bank and the insurance industry in 2016.
About the Tripartite Agreement
In September 2019 during the United Nations Secretary General’s Climate Action Summit, the IDF, UNDP and BMZ announced a commitment to increase resilience for countries vulnerable to climate change and towards realising the Vision 2025 objectives.
The partnership is committed to providing technical assistance and risk solutions to 20 climate vulnerable countries by 2025 through leveraging the strengths of the various parties and rallying global players towards a substantial scale-up in the use of pre-mechanisms as part of global resilience and adaptation ambitions.
Private insurance sector organisations engaged in supporting the Tripartite are: Allianz, Aon, AXA, AXIS, Guy Carpenter, Hannover Re, Munich Re, Renaissance Re, SCOR, Swiss Re and Willis Towers Watson.
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