Vietnam, Indonesia, and Philippines GDP growth rates for 2018 were 7.1%, 5.2%, and 6.2%, respectively. Southeast Asia is likely to sustain larger economic losses from climate change than most other areas in the world. Growing climate-related risk means growing economic losses which warrants protecting of MSMEs, the bedrocks of the economy, against climate impacts to maintain and strengthen current growth levels, which are crucial to lift extreme poor, poor, and at-risk populations out of poverty. The GIZ Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia) supports the region’s poor and vulnerable populations by promoting public and private partnerships that increase insurance solutions outreach for households and micro, small and medium enterprises (MSMEs) to be protected against the extreme effects of climate change. Jointly with its partners in Indonesia, the Philippines and Vietnam, RFPI Asia is exploring pathways to integrate climate risk insurance elements into existing national programs, plans and approaches on disaster risk management and climate change adaptation. The program promotes climate risk insurance through four components: 1) policy and regulation; 2) business model development; 3) use of technology; 4) knowledge hub creation through the Mutual Exchange Forum on Inclusive Insurance.
To support the enhancement of climate risk insurance solutions for MSMEs, a short-term engagement, building on desk-based research, interviews, and three in-country workshops will be conducted and result in a final output paper for further use of GIZ. This output paper will: will carry out a situational analysis elaborating concrete options for the integration of climate risk insurance into national and local government programs, policies and regulations, particularly for disaster resilience promotion in the MSME sector. The analysis also aims to document the existing natural catastrophe insurance solutions applicable to the MSME sector, the drivers and barriers to their development and distribution, including enabling or impeding policies or regulations. The analysis shall provide a first examination of natural catastrophe risks and options for insurance models across the value chain of at least three priority commodity groups per country, as well as options for facilitating improved data access for insurance stakeholders.