Climate Resilience Through C it b d Mi iCommunity-based Microinsurance

Towards Climate Resilient Communities in South Asia: Emerging Policies andTowards Climate Resilient Communities in South Asia: Emerging Policies and Practices’, New Delhi, December 14, 2012

Dr. Nihar Jangle

Outline

Microinsurance for climate-related risksrisks

Community-based approaches

Climate vulnerability

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Project Overviewj

Goal: Enhance the resilience of vulnerable communities to CC by developing pro poor microinsurance solutions

Goal: Enhance the resilience of vulnerable communities to CC by developing pro poor microinsurance solutionsby developing pro-poor microinsurance solutions. by developing pro-poor microinsurance solutions.

Project Partners

ring

WOTR

Field Implementation Partners

Imple

MIA CCD BASIX

Funding AgencySte

er NIDAN

WOTR/

Sampada

Trust

VASFA

mentatio

Vulnerable communities accepted and adopted CC insurance models•Need and benefits of CCMI. Insurance tools, processes and packages. Pilots.Vulnerable communities accepted and adopted CC insurance models•Need and benefits of CCMI. Insurance tools, processes and packages. Pilots.

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Knowledge and innovation shared and disseminated.•Models for climate risks, quantification, pricing. Publications, conferences.Knowledge and innovation shared and disseminated.•Models for climate risks, quantification, pricing. Publications, conferences.

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14 December 2012Inputs for policy, regulatory and institutional contexts developed•Mechanics to produce recommendations for policy and regulatory improvements.Inputs for policy, regulatory and institutional contexts developed•Mechanics to produce recommendations for policy and regulatory improvements.

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Impact Hypothesesp yp

Climate change risks to be insured

Approach•context relevantrisks to be insured

•unpredictable•quantifiable

•context-relevant•customized•participatory

Access to capital•costly

Insurance scheme

•restricted •Contributory•Complementary

Value proposition of insurance•explanation

Insurance solution•only addresses financial

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explanation required•Relevant solution

financial consequences of climate change

Proximate and Simple Solutionsp

Proximate: everything localized (info, claim submission,

Simple: what we can explain we can understandpayments)

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Composite Risk Packages & Multiple Underwritingp g

Composite packages covering multiple risks Multiple underwriting approachmultiple risks

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Weather Data AnalysisyDataset•Purchased from the Indian Meteorological Department, Pune•Rainfall data: 1901 to present, daily level, 5 rain gauge stations (one station per block)•Maximum & minimum temperature & relative humidity: 1969 to 2008, 3 weather stations (one in Maharashtra and two in Bihar)stations (one in Maharashtra and two in Bihar)Methodology and Results•Regression analysis on the time series to reveal mean monthly & seasonal temperature, humidity and rainfall trends •Highly significant linear trends revealed for both the monsoon and winter seasonHighly significant linear trends revealed for both the monsoon and winter season, particularly for the mean minimum daily temperature and humidity.

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Baseline

Study Design and Tools• Structured questionnaire

Sample Size•>50 FGDs• Structured questionnaire

• Focus Groups Discussions (FGD)

• K I f t I t i (KII)

•>50 FGDs•>60 KIIs•4200 HH interviews (2/3 control

1/3 i t ti )• Key Informant Interviews (KII) group, 1/3 intervention group) >20,000 individuals covered

Intervention Area Bihar MaharashtraDistrict Vaishali AhmednagarBlocks Biddupur Hajjipur Vaishali Karjat SrigondaVillages covered 14 7 10 13 7Villages covered 14 7 10 13 7Household Interviews 981 386 733 1331 769Key Informant Interviews 35 30Focus Group Discussions 27 24

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Vulnerability Mapping

• Vulnerability: Degree to which system is susceptible to and unable to cope with adverse effects of climate

y pp g

to, and unable to cope with adverse effects of climate change

Exposure Sensitivity Adaptive C itExposure Sensitivity Capacity

Potential Impact

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14 December 2012 Vulnerability

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Exposure, Sensitivity, Adaptive Capacity: Vulnerability in Vaishali (Bihar)

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Some of the Training Materialg

• Animation short movie • Snake and Ladder GameGame

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Next Steps and Challengesp gNext Steps and Challenges• Baseline analysis reporty p• Establishing (re)insurance linkages• Involvement of communities and field

partners in:partners in:• Design of business processes

• Design of insurance packages

• Awareness programs

• Training of key insurance h tscheme actors

• Launch of the schemes

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