Major hazards such as fire, flood, drought, pest infestation and diseases, worsened by changes in climatic conditions are on the increase. Yet, there exists huge protection gap in developing countries, where less than five percent (5%) of disaster losses are covered by insurance, versus 50 percent (50%) in high-income countries.  

As part of efforts to support the government of Ghana to address this protection gap and create the enabling environment for inclusive insurance, the United Nations Development Programme (UNDP) in Ghana together with the government and other industry players has launched the Insurance & Risk Finance Facility Project to strengthen resilience and protect lives and livelihoods against the impacts of disasters particularly floods in the Greater Accra Metropolitan Area (GAMA).

Speaking at the launch of the project, Sukhrob Khoshmukhamedov, the UNDP Deputy Resident Representative in Ghana, underscored the importance of the project and how it will contribute towards the attainment of the Sustainable Development Goals (SDGs).

“For us to achieve a resilient society, we need to increase access to affordable and accessible insurance and risk financing solutions to deliver the SDGs. This will serve as a mitigation response to promote access to affordable and inclusive insurance for all”, he stated.

Head of Sustainability for Allianz SE, Hermann Rothert, stressed on the importance of partnerships to build a resilient society.

“Forging partnerships to accelerate affordable risk insurance is critical. At Allianz SE, we are keen on finding ways to close the protection gap and develop climate disaster risks insurance solutions that contribute to building resilience and contribute to national climate adaptation strategies”, he said.

In a speech delivered on his behalf by Charlotte Norman, Director of Climate Change and Disaster Risk Reduction of the National Disaster Management Organization (NADMO), Hon. Eric Nana Agyemang Prempeh, the Director General of NADMO reiterated his outfit’s commitment to the project.

“This project is coming at the right time when we need more social protection measures including inclusive insurance and risk financing to protect the vulnerable population to mitigate the impact of disaster. We are happy UNDP has come up with this project, which will help us a lot”.

The project, which is already active in 20 countries, is expected to be a long-term investment that will see the integration of insurance and risk financing into development strategies in Ghana. It aims to develop and implement innovative flood and other natural hazard insurance solutions to protect the vulnerable. This is to contribute to the achievement of the SDGs and the InsuResilience Global Partnership Vision 2025, which is seeking to strengthen the resilience of developing countries against the impacts of disasters and other climate risks.

It is expected that the project will generate additional resources and expertise from the private sector. This will help to expand the interventions to protect more vulnerable in society to ensure that no one is left behind.