on average every year
Source: World Bank
AXA is deepening its relationships with governments and international institutions to create public-private partnerships, working closely with the World Bank Group and other such institutions. We strongly believe that partnering with the public sector and leveraging their know-how, distribution networks, and knowledge on the field, can aid us in reaching the most vulnerable.
We have continued to expand in this space since 2006 when AXA pioneered one of the first parametric deals covering the UN’s World Food Programme (WFP) against drought in Ethiopia. This year, we are participating, among a panel of reinsurers, in covering the Pacific Islands and the Philippines against earthquakes and typhoons losses of up to USD 220 mn. We are also insuring a number of African countries against drought losses including through the African Risk Capacity and the WFP’s R4 rural resilience initiative. These parametric deals have been facilitated by the African Union, the United Nations, the World Bank Group, regional development banks and other international institutions and donor countries. Working with such organizations has been invaluable to AXA in better understanding how to serve the public sector’s insurance needs in the face of climate change.
Using new approaches to insurance that leverage innovative technology, and working with the public sector, brings disruptive solutions to protecting people most exposed to disasters. Discussions at the Paris climate conference this month would do well to include sovereign parametric insurance as an effective tool for dealing with rising weather risk.
If we cannot control the extent to which climate change occurs, we can at least dampen its effects by harnessing data to protect more people and to protect better.