Humanity Insured, a non-profit organisation based in the UK and US, has launched an initiative to help at-risk communities build climate resilience through innovative insurance solutions.
The organisation, backed by the insurance industry, aims to leverage both private and philanthropic capital to provide insurance coverage to the 3.6 billion people living in areas most vulnerable to the effects of climate change.
As part of its 2024 agenda, Humanity Insured has committed to delivering on its mission in partnership with the Clinton Global Initiative.
The non-profit's approach centres on financial resilience as a key factor in climate preparedness. By subsidising a portion of insurance premiums, Humanity Insured offers a safety net to those most at risk from climate-related events. The initiative addresses the ongoing challenge of climate shocks, which destabilise communities and livelihoods, often leaving them without timely financial support.
One of Humanity Insured’s innovative strategies includes the use of satellite-triggered insurance, which ensures rapid disbursement of funds in response to climate-related events. This model helps prevent natural disasters from escalating into crises by providing swift financial assistance.
The certainty that insurance protection offers allows individuals and communities to focus on long-term planning, including investments in education and climate-resilient farming practices.
Charlie Langdale (pictured above), chief executive of Humanity Insured, said the security provided by insurance empowers people to invest in their livelihoods and manage the risks posed by climate change.
“This is an essential response in an ever-more volatile world that relies on post-event funding,” Langdale said. “Humanity Insured will not only stop families adopting negative coping strategies after climate shocks, but by being financially prepared the most unprotected are able to pre-emptively manage the climate risks they face.”
Humanity Insured was established with the support of the global insurance industry, led by Howden, an international insurance intermediary group. The organisation received seed funding from seven global insurers, including Allianz, Hiscox, The Fidelis Partnership, Tokio Marine Kiln, and Beazley.
A newly appointed board, composed of experts in development, finance, and climate, will oversee the non-profit's activities, ensuring the initiative’s goals are met.
Since receiving charitable status in the UK in July 2024, Humanity Insured has approved three grants to support climate resilience efforts in East Africa and the Pacific region.
In Malawi, the UN Refugee Agency (UNHCR) will fund a portion of the premium for a drought insurance programme, which will cover the upcoming growing season. The initiative will also finance a community resilience programme aimed at helping refugees and local farmers maximise the limited land available for cultivation.
The insurance coverage will support the Dzaleka refugee settlement and local Malawians by mitigating the economic impact of drought and preventing food insecurity.
Emma Cherniavsky, chief executive of UNHCR UK, highlighted the importance of innovative insurance protection for displaced populations who are often among the most vulnerable to climate change.
“Supported by Humanity Insured’s leadership and expertise in this space, we hope to expand equitable access to this essential insurance as part of UNHCR’s global humanitarian work, strengthening the resilience of displaced communities against climate-induced crises,” Cherniavsky said.
Another grant will support One Acre Fund, a social enterprise in East Africa, to subsidise agricultural insurance for more than 200,000 Kenyan smallholders. In the event of poor harvests, the insurance will provide cash payouts to farmers, allowing them to meet household needs and prepare for the next planting season.
According to Joel Ackerman, One Acre Fund Board Member, over 90% of smallholder farmers remain uninsured, leaving them exposed to poverty traps due to climate shocks. The support from Humanity Insured aims to create financial resilience for these farmers, contributing to global food security.
In Papua New Guinea, a grant has been provided to Mama Bank, the country’s first Women’s Micro Bank, to subsidise insurance protection for small businesses and farmers affected by drought and excessive rainfall. The majority of these businesses are led by women.
Gunanidhi Das, CEO of Mama Bank, stated that this initiative will offer female entrepreneurs in Papua New Guinea access to insurance protection for the first time, providing them with the financial security needed to grow their businesses despite climate-related challenges.
As Humanity Insured continues its work, it plans to expand its insurance offerings and resilience-building programmes to more communities on the frontline of the climate crisis. By making insurance accessible to those most vulnerable, the organisation aims to contribute to broader efforts to strengthen global climate resilience.
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