The IDF publishes 2021 Annual Report as it prepares for another year of action galvanising the public, private and humanitarian sectors to highlight the crucial role that insurers must play in addressing the adaptation and resilience challenges in 2022
London, Monday 31st January, 2022: The Insurance Development Forum (IDF), a public/private partnership led by the insurance industry and with the United Nations, World Bank and other international organisations from the public sector as members, has reflected on a landmark year with the release of its Annual Report – 2021 in Review.
During 2021, the IDF and its members and partners – totalling 90 global industry experts active on country projects; 50 United Nations Development Programme (UNDP) officials working across country projects; and 17 Governments in direct discussion on programmes – delivered significant policy and operational impact.
Across multiple events including the IDF Summit in June 2021 and COP26 in November 2021, the IDF and its members and partners demonstrated the crucial role that insurers and reinsurers must and can play in addressing the adaptation and resilience challenge in the future.
Key announcements and events focused on addressing the financial protection gap, the importance of risk and resilience analytics and much-needed access to insurance-based risk modelling capabilities to help spur tangible action.
Key announcements during 2021 included:
- May 2021: IDF launched its Tripartite Project for the City of Medellin, Colombia.
- September 2021: The IDF and the Vulnerable 20 (V20) Group of 55 climate-vulnerable Ministers of Finance announced their intention to advance on the creation of the Global Risk Modelling Alliance (GRMA) by COP26 in Glasgow and called on the G7 and the G20 to support this effort.
- November 2021: The signing of the agreement between the IDF and the V20 at COP26 to build risk analytics capability where it is needed the most – paving the way for the creation of the global public-private partnership programme, GRMA.
- November 2021: The IDF jointly established the Global Resilience Index Initiative (GRII), a multi-partner initiative launched at COP26 Adaptation Day.
- November 2021: The IDF strengthened its partnership with the Start Network. The IDF announced its support for Start Ready, a new humanitarian financing facility, which is launching at COP26.
Denis Duverne, IDF Steering Committee Chair and Chairman of the Board at AXA, said:
“2021 has been an important year for climate action in general, culminating with COP26. Glasgow highlighted an escalating urgency and an accelerating demand for risk mitigation, but also adaptation, which was put under the spotlight with a much stronger focus than in the past.
Looking ahead to 2022, there are a number of transformational initiatives to be further developed, including on anticipatory action and disaster risk reduction, the Net Zero Insurance Alliance, and the Crisis Lookout campaign to boost pre-arranged humanitarian financing.
More broadly, while countries have made some progress to increase their resiliency to climate change, the crisis is becoming more urgent and has been exacerbated by Covid-19. We don’t need another crisis to prompt action.
Now more than ever there is a greater need for advocacy on the importance of risk management and insurance in underpinning development efforts. I am sure that with your support the IDF will continue to be a key institution for bringing about systemic change to combat the climate crisis and help deeper global resilience.”
In a joint statement, Ekhosuehi Iyahen IDF Secretary General and Rowan Douglas IDF Operating Committee Chair, said:
“2021 has been a pivotal year for the IDF in this respect and our presence at key climate-related events has been unlike any other. From the G7 Summit to COP26, 2021 has seen us shape projects, drive funding, and instil a sense of responsibility and understanding of the key role the insurance sector plays. The importance of the IDF and our mission has never resonated more strongly.
We raised our voice about the financial protection gap, risk and resilience analytics, and the need for insurance-based risk modelling capabilities for all – and we were heard.
The positive outcomes of COP26 were further boosted by the announcement of the joint establishment of the GRII, a multipartner initiative under the patronage of IDF SteerCo members Mark Carney, Mami Mizutori and Eric Andersen.
The scheme aims to provide a globally consistent set of risk metrics that can serve as a key reference index for understanding resilience across all sectors and geographies – something which has been a long-held ambition of the IDF – and, following its successful demonstration at COP26, we are pleased to share that detailed modelling work is underway.
During 2021, we were also particularly delighted to formally welcome Celsius Pro, Howden, Lloyd’s DRF and US Agency for International Development (USAID) as new members, and are looking forward to another year of global growth and action in 2022.
This will include further development of the GRII and GRMA; further announcements on the role of insurance in the Sustainable Development Goals; and new country project announcements under the Tripartite Agreement, initially including a project in Mexico.
Thank you to all our members and partner organisations for your continued support.”
Notes for Editors
About the IDF
The Insurance Development Forum (IDF) is an industry-led Public-Private Partnership bringing together insurance industry leaders, government officials and international organisations.
First announced at the UN Conference of the Parties (COP21) Paris Climate Summit in 2015, and officially launched by leaders of the United Nations, World Bank and insurance industry in 2016, the IDF looks to to leverage the technologies, expertise and financial mechanisms native to the insurance industry to enable the world’s most disaster vulnerable governments, economies and populations to enhance risk understanding and build resilience.
For further information, please visit: www.insdevforum.org
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31st January, 2022