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
2
14 December 2012
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.
n
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.
3
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.
3
4
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
5
14 December 2012
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)
6
14 December 2012
7
Composite Risk Packages & Multiple Underwritingp g
Composite packages covering multiple risks Multiple underwriting approachmultiple risks
8
14 December 2012
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.
9
14 December 2012
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
10
14 December 2012
p
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
11
14 December 2012 Vulnerability
12
Exposure, Sensitivity, Adaptive Capacity: Vulnerability in Vaishali (Bihar)
13
14 December 2012
13
Some of the Training Materialg
• Animation short movie • Snake and Ladder GameGame
14
14 December 2012
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
15
14 December 2012
16
14 December 2012