Development Insurer, Broker, or Advisor? How ‘Risk Pools’ Build Resilience for the Future
The current and future role of risk pools as an evolving part of the international system to advance financial resilience for vulnerable countries globally. Risk pools are innovative, demand-driven pioneers in Disaster Risk Finance (DRF) and Parametric Insurance. The four leading Regional Risk Pools in the world, African Risk Capacity Ltd., CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), Pacific Catastrophe Risk Insurance Company (PCRIC), and Southeast Asia Disaster Risk Insurance Facility (SEADRIF) work with their members to increase effective, efficient, and affordable access to insurance against disasters and climate risks. At their core, risk pools provide insurance solutions to members. However, 20 years after the establishment of the first risk pool, CCRIF, their roles are expanding to support the evolving needs of their members. Risk pools now face new challenges and opportunities as they grow into a new generation of development insurers. In the discussion, the Regional Risk Pools’ leaders reflected on the progress of their company, bottleneck, and growing demand. The discussion showcased sources of growth and diversification, for example new products such as insurance for agriculture, energy, and infrastructure as well as new policy holders such as non governmental organizations and utilities. Examples highlighted include ARC’s collaboration with humanitarian agencies and CCRIF’s work with electric utilities. The representatives from risk pools highlighted that sufficient capital and financial sustainability are essential for risk pools to progress and grow the protection provided to our members. Collaborating with new stakeholders, including social protection entities, state-owned agencies, aggregators, and multilateral development banks can further scale up the development impact of risk pools.
“Regional Risk Pools face similar challenges and growth opportunities. We’ve started regular knowledge exchanges and strategic discussions to tackle these subjects together. The Understanding Risk Global Forum UR24 is a great platform for us to come together and show what we can achieve. We’re encouraged by the interest in risk pools from conference participants. This is a valuable opportunity to demonstrate the benefits of risk pools, connect with partners, and reach out to new stakeholders. Together, we can explore meaningful collaborations to further enhance the impact of risk pools.” said Benedikt Signer, Executive Director and Board Member, SEADRIF Insurance Company.
Regional Risk Pools will deepen their collaboration to share learning, experiences and joint activities. New partnerships and growing engagement with members, stakeholders, and private sector collaborators supports the growth of the risk pools’ products and portfolio.
Organized by: Africa Risk Capacity (ARC), CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), Pacific Catastrophe Risk Insurance Company (PCRIC), Southeast Asia Disaster Risk Insurance Facility (SEADRIF) Insurance Company
