Climate and Disaster Governance

This discussion paper considers the role of Disaster Insurance as a tool for climate change adaptation and social protection. Using Ethiopia as a case study, the research argues that the current appeal-based emergency model is unsustainable and discusses the value of two key factors, “timeliness” and “reliability” that disaster insurance could bring to humanitarian intervention.

Project particulars

Co-ordinator: Rachele Pierro, Christian Aid UK

Researchers: Rachele Pierro, Christian Aid UK

Duration: Completed, 2008

Funders: Christian Aid UK

Countries: General, Ethiopia

 

Project overview

The resulting discussion paper provides a short and concise overview of the key issues:

• Opportunities and challenges of a) micro-insurance and b) national disaster insurance; and the unsustainability of current approaches.

• The need for a better understanding of  a) how much funding is globally available; b) The monetary value of timeliness and reliability of insurance; c) How vulnerable communities and individuals can be targeted; and d) The potential role of civil society in design and monitoring of progress.

• Key recommendations for civil society organisations, governments and donors.

Key research findings

This research showed that rigorous and extensive research is necessary to assess the financial sustainability and feasibility of a Disaster Insurance approach. Key challenges considered are the complexity of a cost-benefit analysis as well as the issue of targeting and participation. Specific recommendations are:

• for donors, investment in knowledge generation and knowledge sharing as well as enhancement of civil society’s participation;

• for governments, investment in developing National schemes also by making available the required weather data and creating the necessary institutional framework;

• for civil society, active involvement in the research process, also monitoring the targeting method and the impact of the scheme.