Page 1
1st Climate Risk Insurance
National Task Force MeetingMay 20, 2019
Sofitel Manila
Page 2
Agenda and Flow of the Meeting
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Time Topic
9:30 – 9:45 Agenda and flow of the NTF meeting
9:45 – 10:05 Opening Messages
10:05 – 10:30 GIZ Integrated Disaster Risk Management Approach,
CRI Conceptual Framework and Deliverables
10:30 – 11:00 Terms of Reference (ToR) of the NTF and TWGs
11:00 – 11:15 Health Break
11:15 – 12:00 Criteria-setting for the Selection of Project Areas
(LGUs)
12:00 – 12:15 CRI Monitoring & Evaluation (M&E) Concept
12:15 – 12:25 Next Steps and Closing message from NTF Chair
12:25 – 12:30 Group photo
12:30 – 14:00 Lunch Break
14:00 – 17:00 Parallel TWG meetings
Page 3
Agenda Item No. 3
GIZ Integrated Disaster Risk Management Approach,
CRI Conceptual Framework and Deliverables(Dr. Antonis Malagardis and Dante Portula)
Action Needed
For Comment
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 4
Integrated Climate (and Disaster) Risk Management
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Response
This phase comprises all
emergency measures aimed
at saving human lives in the
event of a natural disaster.
Prevention
This phase comprises
all the measures that
help prevent or
minimize possible
damage from an event.
Recovery
After the impact of a
natural hazard,
infrastructure
and other areas of society
must be rebuilt, so that
people can resume their
livelihoods as quickly as
possible.
Preparedness
Preparedness contains a complex
set of activities such as setting up
early warning systems,
developing contingency plans,
organizing various activities such
as stockpiling of equipment, and
coordination and training as
cross-cutting issues.
Retention & Transfer
Even when preventative actions
have been taken, some residual
risk remains. In the Retention &
Transfer Phase, it is important to
conduct a cost-benefit analysis to
determine if pre-disaster financing
or insurance would be
appropriate.
Page 51st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Applying the approach across sectors – examples
• Risk analysis
• Hazard mapping: vulnerability of
e.g. power infrastructure
• Understanding of climate
projections
• Design to withstand projected
hazards
• Ongoing maintenance
• Land use planning with
restrictions
• …
• Projects in e.g. West Balkan,
Thailand, India …
• ‘Build back better’ opportunity
• Design standards for resilient
design
• Enhance building standards/
codes
• Improved location based on risk
mapping
• …
• Projects in e.g. Nepal
• Rapid repair, access to spare
parts, expertise and capacity
through pre-established
institutions/ channels
• Access to finance immediate
after a disaster
• …
• Projects in e.g. Malawi using
existing payment mechanism
(social protection)
• Insurance for damage
to e.g. energy
infrastructure
• Insurance along the
value chain (harvest-
packaging-transport)
against floods
• …
• Projects in e.g. China,
Barbados, Ghana …
• Early warning systems
for energy suppliers
• Contingency plans
for…
• Disaster preparedness
processes are in place
(training)
• …
• Projects in e.g. West
Balkan, Philippines …
Page 6
GIZ RFPI III – Overview of Conceptual Framework
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Program Goal: The strategic and technical prerequisites for high-quality
climate risk insurance for the poor, the extremely poor, and most at-risk
people have been created.
Partner countries: Indonesia, Philippines, Vietnam
Project duration: Jan 2019 – Dec 2021
Components:
1: Policy and Regulation
2: Product Development
3: Use of digital technologies
4: Climate Risk Insurance Hub (through Mutual Exchange Forum on
Inclusive Insurance)
Main Target: 4 million beneficiaries are covered by new CRI products
Page 71st Climate Risk Insurance National Task Force MeetingMay 20, 2019
I. POLICY AND REGULATION II. BUSINESS MODEL III. USE OF
TECHNOLOGY
Integrate DRI/CRI for HHs and
MSEs in the plans at LGU level
Access to Data: Climate
risk assessment
(hazards, exposure,
vulnerability)
Development of
Technology platform to
support
LCCAP (Local Climate Change
Action Plan)
CRI Product
development & delivery
for two market
segments:
1) Climate risk
assessment and
modellingDRRMP (Disaster Risk
Reduction & Management Plan)
Find resources for insurance
in the fiscal policies
1) For Social Protection
programs at the LGUs
2) CRI awareness
raising and
Advocacy
Integration of CRI in the Social
Protection Programs
2) For Microinsurance
sector
3) Learning
management
IV. CRI HUB (through the MEFIN Network)
• Capacity Development (CD) of public and private stakeholders
• Knowledge Management (KM)
• Public Private Dialogue (PPD)
GIZ RFPI III – Overview of Conceptual Framework (Philippines)
Page 81st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Milestone Key Activity May Jun Jul Aug Sep Oct Nov Dec Responsible
1. Access to public fund sources for CRI is clarified
Confirmation of existing fiscal policies and public fund sources that can support CRI for households and MSMEs and clarifying access to them for such purpose
TPR, NTF
2. Access to government data is provided to legitimate users
Provision of access to data needed for CRI product development as identified by the insurance industry
TBM, TUT
3. Partner-LGUs are selected Selection of partner-Local Government Units based on approved criteria for the development and implementation of CRI solutions
TPR, NTF
4. Appropriate CRI products and their marketing/distribution systems are available and endorsed
Development and endorsement of appropriate CRI products and their marketing/distribution systems based on international Key Performance Indicators
TBM, TUT, NTF
5. Technology platform for CRI solutions and advocacy is developed
Development of technology platform for CRI solutions and advocacy
TBM, TUT, NTF
7. National DRI concept paper is developed
Development of concept paper for the integration of DRI/CRI into the LCCAPs and DRRMPs of LGUs
TPR, NTF
6. DRI/CRI for households and MSMEs are integrated in the LCCAPs and DRRMPs
Integration of DRI/CRI for households and MSMEs in the LCCAPs and DRRMPs of LGUs
TPT, NTF
8. Capacities of public and private stakeholders are developed
Capacity development of public and private stakeholders through webinars and Public-Private Dialogues
GIZ-RFPI Asia III
9. CRI Program is monitored jointly by GIZ and LGUs
Joint monitoring of CRI Program implementation GIZ-RFPI Asia III, LGUs
OBJECTIVE: Demonstrate that innovative arrangements for Climate Risk Insurance against flood and typhoon are endorsed by government and
private sectors and introduced to selected Local Government Units
CRI Program PH Work Plan, May – Dec 2019
Page 91st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Agenda Item No. 4
Terms of Reference (ToR) of the NTF and the TWGs(Alex Tabbada)
Action Needed
For Approval: ToRs and Chairs and Membership of
TWGs
Page 101st Climate Risk Insurance National Task Force MeetingMay 20, 2019
The National Task Force (NTF)
MAJOR TASKS IN 2019
1. Review, approve and formalize mechanism of accessing data and public funds
for CRI solutions;
2. Review and approve criteria in selecting participating/partner LGUs;
3. Review and approve national DRI concept paper for the integration of DRI/CRI
for households and MSMEs in the LCCAPs and DRRMPs of LGUs;
4. Formalize agreements with selected LGUs;
5. Endorse to LGUs CRI product approved by the Insurance Commission;
6. Review and approve digital application developed for CRI solutions and
advocacy; and
7. Review, approve and monitor implementation of TWG work plans
Page 111st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Technical Working Groups (TWGs)
MAJOR TASKS IN 2019
TWG Policy and Regulation (TPR)
1. Analyze fiscal policies and public fund sources that can support CRI for
households and MSMEs and propose mechanism to access them;
2. Develop criteria in selecting participating/partner LGUs;
3. Select participating/partner LGUs based on approved criteria;
4. Prepare national DRI concept paper for the integration of DRI/CRI for
households and MSMEs in the LCCAPs and DRRMPs of LGUs;
5. Facilitate integration of DRI/CRI in the LCCAPs and DRRMPs of LGUs; and
6. Coordinate closely with TBM and TUT for work synergy
Page 12
TECHNICAL WORKING GROUPS MAJOR TASKS IN 2019
TWG Business Model (TBM)
1. Develop and propose mechanism to access data needed in climate risk
assessment and CRI product development as identified by the insurance
industry
2. Provide direction for CRI product development for social protection programs of
LGUs and for the Microinsurance sector
3. Coordinate closely with TPR and TUT for work synergy
TWG Use of Technology (TUT)
1. Develop a digital application for CRI solutions, advocacy and learning
management
2. Coordinate closely with TPR and TBM for work synergy
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 13
Management Structure of CRI Program
Secretariat
(RFPI Team)
TWG Policy
and Regulation
(TPR)
Proposed
Lead: DOF
TWG Business
Model
(TBM)
Proposed
Lead: IC
TWG Use of
Technology
(TUT)
Proposed
Lead: DOST
National
Task Force
(NTF)Chair: DOF
Co-chair: RFPI
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 141st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Agenda Item No. 5
Criteria-setting for the Selection of Project Areas (LGUs)
Action Needed
For Approval: Selection criteria, number of LGUs to be
supported by RFPI
Page 15
Purpose of discussion:
• Give overview how other climate and disaster risk insurance initiatives
selected their project areas and beneficiaries
• Enable NTF members to decide set of criteria to consider in selecting
CRI Program project areas
Expected engagements with project areas:
• Review of local climate change and disaster risk reduction and
management policy and funding priorities
• Product development and launch
• Inclusion in information and education campaigns
Criteria-setting for the Selection of CRI Project Areas
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 16
ADB Philippine City
Disaster Insurance
Pool• Provides parametric
insurance cover against
typhoons and
earthquakes through risk
pooling arrangement
• Aim is to rapid post-
disaster financing for
early recovery
• Initial pool capital
provided by government
with reinsurance
purchased from domestic
and international markets
World Bank
Parametric
Insurance Pilot
• PHP1 billion cover
against typhoons and
earthquakes for NGAs
and 25 highly
vulnerable provinces
provided through GSIS
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 17
Proposed criteria to use in selecting priority areas
• Coverage by WB or ADB project (25 provinces and 10 cities)
• Inclusion in priority areas of NAPC and Climate Change Commission
• Demographic and economic size
• Geographic location
• Hazards data availability
• Disaster risk management governance (presence of champion)
• Risk exposure to typhoon and flood
• Support of local champion
• Presence and reach of distribution channels (ex. MFIs, pawnshops)
• Concentration of MSMEs
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 181st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Agenda Item No. 6
CRI Monitoring & Evaluation (M&E) Concept
Action Needed
For Approval
Page 19
CRI Monitoring & Evaluation Concept
Joint Monitoring & Evaluation Components
1. Sustainable Development Goals (SDGs) Monitoring
2. Integration with the Community-Based Monitoring System
3. RFPI III Internal M&E
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 20
SDGs Monitoring
SDG 1 No poverty
SDG 2 Zero hunger
SDG 3 Good Health
SDG 8 Sustainable
economic growth
SDG 9 Industry, Innovation
and Infrastructure
SDG 11 Sustainable Cities
and Communities
SDG 13 Climate adaptation
measures
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 21
Integration with the Community-Based Monitoring
System
Social protection: CRI
CBMS Key Indicators
Ex. # of households with
CRI coverage
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 221st Climate Risk Insurance National Task Force MeetingMay 20, 2019
3 partner governments have included CRI
explicitly targeting the poor, the extremely
poor, and most at-risk in their national
resilience strategies.
OI.1Objective
Indicators (OI)
4 million (50% women) of the poorest and
most at-risk populations in three partner
countries are covered by new CRI products
offered by governments.
OI.2
3 new digitally supported business models,
1 of which focuses on payment modalities,
have been introduced with insurers.
OI.3
2 international standard implementation
plans for the regulation of CRI solutions
have been developed by insurance
supervisors of the partner countries.
OI.4
3 CRI concept papers developed by the national CRI task
forces
RI.1Results
Indicator
(RI)
Co
mp
on
en
t 1
Na
tio
na
l C
RI
co
ncep
t
Cross-border criteria for high-quality CRI products are
coordinated by relevant actorsRI.2
In 2 countries, members of 2 CRI insurance groups are
qualified to develop high quality productsRI.3
Co
mp
on
en
t 2
Pro
du
ct
De
velo
pm
en
t
4 new CRI-relevant knowledge products on digital
technologies are developed together with insurers and
presented at 4 different events
RI.4
3 Proposals for customer protection regarding the
regulation of digital technologies (including cyber
security) in CRI products have been promulgated with the
insurance supervisors in cooperation with A2ii.
Co
mp
on
en
t 3
Use
of
dig
ital
tech
no
logi
es
RI.5
5 of 7 MEFIN-affiliated insurance supervisors agree that the
project-supported events and knowledge products of the 3
insurance regulators in 3 partner countries are useful in
implementing CRI and A2ii-related topics for the
implementation of regulations.
RI.6
Roadmap for sustained support of insurance supervisors to
inclusive insurance markets & the strengthening of MEFIN has
been developed with the A2ii.
Co
mp
on
en
t 4
MEF
INn
etw
ork
, a
C
RI
Hu
b
RI.7
OBJECTIVE LEVEL
RESULTS LEVELDeliverables
Page 23
Agenda Item No. 7
Next Steps
Action Needed
For Approval: Date of next NTF meeting
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Page 24
Proposed next meetings dates and agenda items
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019
Schedules Agenda
2nd TWG Policy &
Regulation
15 August
9:00 – 12:00
Please refer to reference
material
2nd TWG Business Model &
Use of Technology
(combined)
15 August
14:00 – 17:00
3rd TWG Policy &
Regulation
20 November
9:00 – 12:00
(parallel meetings)
3rd TWG Business Model
& Use of Technology
(combined)
20 November
9:00 – 12:00
(parallel meetings)
2nd NTF Meeting 20 November
9:00 – 12:00
Page 25
#END#
Thank You
1st Climate Risk Insurance National Task Force MeetingMay 20, 2019