Categories: MSP in Practice
MSP in Practice: The ‘Medellín Project’ – a collaborative success story in advancing climate risk insurance
To strengthen financial resilience against climate-related risks and natural disasters in the Medellín region, various stakeholders joined their efforts. The outcome is a tailor-made insurance solution enveloping Medellín’s vulnerabilities. Lessons learned of the extraordinary collaboration will be presented at COP28 to highlight the role of partnerships in addressing the impacts of climate change.
The Insurance Development Forum (IDF), represented by Willis Towers Watson (WTW) and Hannover Re, the Federal Ministry for Economic Cooperation and Development (BMZ) and the United Nations Development Programme (UNDP) joined forces with the Medellín Administrative Department of Disaster Risk Management (DAGRD) and private insurance organisations in a collaborative effort to enhance urban resilience against climate change impacts in Medellín and surrounding areas. The partnership, labeled as ’The Medellín Project’, was co-financed and facilitated by the InsuResilience Solutions Fund (ISF) as part of the multi-stakeholder partnership InsuResilience Global Partnership for Climate and Disaster Risk Finance and Solutions (IGP).
The management of the Hannover Re branch in Bogotá emphasized the extraordinary added value: ‘We highly value this project’s collaborative approach that brought together public authorities, an international NGO, a broker and a reinsurance company. It demonstrates how all project partners contribute their unique strengths to reach the best possible result. Blending local and international experience as well as being open-minded also were important elements as we moved from a vision to execution.’
A lessons learned paper highlights relevant success factors of the cooperation. This includes the need for close cooperation with local stakeholders, solid understanding of the dynamics of public administration for the development of compliant insurance products, utilization of centralized data bases on historical climate hazards, establishment of a common communication platform among all partners and flexibility in adapting to emerging data and political environment.
These insights will be presented at COP28 to highlight the significance of partnerships in addressing climate change and its impacts.
Context: The InsuResilience Global Partnership for Climate and Disaster Risk Finance and Solutions (IGP) globally advocates comprehensive climate risk management. IGP supports partnerships aiming to enhance the resilience of the most vulnerable populations to the effects of climate change.