The UN’s International Labour Organisation (ILO) recently joined the UN Capital Development Fund (UNCDF) in its efforts to expand climate risk insurance in the Pacific region. The Pacific Insurance and Climate Adaptation Programme (PICAP), which was launched in 2020 by UNCDF and two other UN agencies, has supported insurers in deploying parametric coverage in Fiji, Tonga and Vanuatu. Parametric insurance pays policyholders when conditions such as wind speed or rainfall cross a predefined threshold. ILO and UNCDF are looking to expand PICAP to Kiribati, Papua New Guinea, Samoa, the Solomon Islands and Timor-Leste. Among PICAP’s strategies are to support implementation partners with funding, technical assistance, and better access to digital payment providers and products.
ILO Social Finance Programme Chief Craig Churchill said, “The insurance industry has a crucial role to play to help mitigate the impact of climate change, and this project will aid in enabling insurers and relevant stakeholders in fulfilling that role.”
Founded in 1919, ILO has 187 member states. Its mission is to “advance social and economic justice” by setting international labour standards and policies for sustainable employment and working conditions. For the years 2022 and 2023, ILO has a total budget of USD 852 million.
Established in 1966 and headquartered in the US city of New York, UNCDF endeavours to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organisation operates in 46 low-income countries in Africa, Asia and the Pacific, with a particular focus on countries emerging from crises. For the year ending December 2022, UNCDF reported receiving contributions of USD 185 million.
By Anaya Jhaveri, Research Associate
Sources and Additional Resources
ILO press release
https://www.ilo.org/global/topics/employment-promotion/social-finance/impact-insurance/WCMS_885947/lang–en/index.htm
PICAP description
https://www.uncdf.org/pacific-insurance-and-climate-adaptation-programme
UNCDF homepage
https://www.uncdf.org/
UNCDF financials
https://transparency.uncdf.org/2022.html
ILO homepage
https://www.ilo.org/
ILO budget 2022-2023
https://www.ilo.org/global/about-the-ilo/how-the-ilo-works/organigramme/program/WCMS_831036/lang–en/index.htmv
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