Martyn Day – 2016 Parliamentary Question to the Department for International Development

The below Parliamentary question was asked by Martyn Day on 2016-01-20.

To ask the Secretary of State for International Development, with reference to InsuResilience, the G7 Initiative on Climate Risk Insurance, if she will make it her policy to (a) allocate additional funding of £100 million to that programme, (b) scale up by at least £50 million weather-indexed microinsurance that provides direct coverage for smallholder farmers pastoralists and other vulnerable groups and (c) increase her Department’s grant funding for the African Risk Capacity to £20 million in order to improve the capacity of that programme to meet its targets.

Mr Nick Hurd

The UK supports the G7 Climate Risk Insurance Initiative and is committed to contributing to meeting the collective target set out in the Elmau declaration of helping up to an additional 400 million people in the most vulnerable developing countries to gain access to climate risk insurance by 2020. UK support under the Initiative includes a commitment of up to £100m to African Risk Capacity (ARC) and £15m for the Pacific Catastrophe Risk Assessment and Financing Initiative. Of this, the UK has contributed £32m so far to ARC.

On scaling up support to weather indexed microinsurance, the UK currently provides some support to livestock insurance in Kenya to improve the product offered to pastoralists and increase the role of the private sector. The UK also provides index-based insurance through the CGIAR climate change, agriculture and food security research programme (CGIAR-CCAFS). In September 2015, the Prime Minister announced that the UK would provide at least £5.8 billion of climate finance over the next five years. This is likely to include further support for climate risk insurance.