The FINANCIAL — Europa Re, a catastrophe and weather risk reinsurance facility, is receiving fresh support in its efforts to help governments in Southeastern Europe adapt to climate change.
The Special Climate Change Fund, administered by the Global Environment Facility, is providing $5.5 million to fund the technical and regulatory work needed to develop catastrophe and weather-risk insurance markets, and mitigate the negative impact of climate change in Albania, FYR Macedonia, and Serbia, through the World Bank’s Southeastern Europe and Caucasus Catastrophe Risk Insurance Facility Project.
The $5.5 million SCCF grant will support actuarial and probabilistic country weather risk assessments that are necessary to develop insurance pricing and underwriting guidelines; funding the implementation of regulatory frameworks to ensure catastrophe and weather risk insurance products comply with national laws; and acquiring weather reporting in order to provide timely readings of temperature and precipitation – data needed for parametric weather risk contracts.
The SCCF grant will also help finance the development of risk maps, climate risk models, and the crafting of parametric weather risk insurance products, all of which will require the compilation of temperature and precipitation indices. It will assist in the development of weather risk insurance products which will enhance adaptive capacity to climate change in the recipient countries. Lastly, this new funding will support public education projects on disaster risk exposure and the benefits of catastrophe and weather risk insurance.
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