Toward greater financial resilience: enhancing the Global Disaster Risk Finance Architecture

In the last years, substantial progress has been made in enhancing financial protection against disaster risks for poor and vulnerable people. 

Thanks to the collective efforts under the InsuResilience Global Partnership, 150 million people were financially protected through CDRFI solutions in 2021 alone. 

However, significant challenges remain: the bulk of disaster funding is still arranged ex post; the DRF landscape remains fragmented and mainly driven by the supply side; solutions are not always easily accessible or tailored to specific needs of vulnerable countries; affordability barriers amplified by fiscal pressures and intensifying external debt issues remain a persistent issue for vulnerable countries, and have been exacerbated by the impact of Covid-19.  

At the same time, climate and disaster risks continue to increase dramatically, and will do so for decades even if the Paris Agreement’s goals are met, implying additional constraints for vulnerable countries to access finance for investments in resilient pathways.  

Against this backdrop, the question arises whether the current Global DRF Architecture is fit for purpose: not only for delivering on the InsuResilience Vision 2025, but also for meeting growing demands and ensuring sustained protection and resilience for vulnerable countries in the years and decades to come. The suggested panel discussion will convene high-level experts to lay out tangible ways for a systemic global approach to DRF. 

Session objectives

1. Introduce the vision of Germany’s G7 presidency “Global Shield against Climate Risks” 
2. Build mutual understanding on the enhancement of Climate and Disaster Risk Finance 
3. Identify key drivers for  further enhancing the Climate and Disaster Risk Finance Architecture