Swiss Re’s Ivo Menzinger, industry chair for the Insurance Development Forum’s Sovereign & Humanitarian Solutions Working Group, says the willingness among governments to engage in public-private solutions to build resilience is growing.

Ivo Menzinger IDF

“In a world that is becoming riskier due to environmental changes, conflicts and growing interconnectedness, resilience is a topic of strategic relevance for the development strategy of any nation,” Menzinger told ESG Insurer. 

“Financial resilience needs to be part and parcel of development strategies and the insurance industry can not only contribute its balance sheet to these efforts, but also its knowledge and expertise to mitigate and assess risk and to develop new insurance schemes in collaboration with governments.”

Menzinger said there is a “growing awareness of risk and an increasing acknowledgement of both the value of pre-arranged risk financing as well as the important role that the insurance industry can play when working in partnership with governments in this way”. 

“We see this willingness increasing across the full spectrum of countries, from the most vulnerable to the most advanced ones,” he said.

He added that the newly launched Mexico project leverages technology to address challenges that are essentially universal for smallholder insurance programs: low administration costs, efficient loss assessment and fast payouts directly to the individual smallholder farmer. 

“The same technology can be applied in multiple regions across the globe, so the learning and replication potential is significant,” he said.

“I am very pleased that the IDF, UN Development Programme and the Government of Germany [which provided funding] have jointly built a platform that can support these efforts. In particular, the Mexican Ministry of Finance and Public Credit and the Ministry of Agriculture have been so supportive of this joint project,” he added.