One of the major challenges with creating insurance-based systems to boost societal resilience is achieving the necessary scale for those solutions to make enough of a difference to lives and livelihoods.
Central to this challenge is the availability of data and modelling tools in regions where risks have traditionally been uninsured.
Today’s discussions at COP26 focused on adaptation to boost societal resilience against loss and damage related to climate change impacts.
Within those talks saw the formal launch of the Global Resilience Index Initiative, a new platform which aims to address one of the major underlying challenges in broadening coverage - the lack of data.
The GRII, launched at the request of UN-envoy and former Bank of England governor Mark Carney, is aiming to level the playing field in terms of risk data and information.
Once this data is available, it can then feed into the adaptation and resilience planning of vulnerable countries. In turn, a shared understanding of risk across society will help mobilise the trillions of dollars of capital needed to build a more resilient world.
As Nicola Ranger, one of the leading figures in the development of the GRII, highlights: “To solve the climate emergency we must also solve the data emergency.”
If by solving the data emergency the flow of investment into resilience and adaptation planning can be unlocked, there is also potential to create an insurance opportunity.
The open, collaborative platform will draw on the significant modelling expertise of the (re)insurance industry to provide an advanced, probabilistic view of risk.
Ben Caldecott, who will co-chair the GRII alongside Willis Towers Watson’s Rowan Douglas, highlighted during the event today how the next big focus for governments and regulators after net zero disclosures will likely be around resilience - a move that would further drive demand for the type of information that will be created through the GRII initiative.
If the GRII can gain traction, its implications could be profound.