Vulnerable States will Benefit from New Global Venture

Fiji and other vulnerable small states will benefit from a new global partnership.

The partnership will be a major boost for economies wanting to bounce back from natural disasters and climatic events.

The German Federal Ministry for Economic Co-operation and Development (BMZ) announced that it would contribute about US$125 million (F$258.08m) to support this new global partnership.

These funds will be used to bring affordable insurance and other financial protection to millions of vulnerable people around the world. This major new initiative supports the Fijian Presidency’s priority of ensuring COP23 looks for ways to take care of the vulnerable.

As reported in the Fiji Sun yesterday, Fiji too will be able to benefit from these funds, more importantly in areas of housing insurance.

This is an area which needs urgent attention as mentioned by the Attorney-General and Minister for Economy Aiyaz SayedKhaiyum on many occasions.

The announcement was made during the launch of the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions as part of the High-Level COP23 Presidency Event on resilience and risk sharing.

Also contributing to this fund is United Kingdom. They had committed US$39 million (F$80.52m) in July.

During a press conference held in Bonn, Germany on Tuesday, Mr Sayed-Khaiyum welcomed the initiative and mentioned that use of insurance as a form of security was needed in developing states. He pointed out that less than 10 per cent of Fijians who were affected by Tropical Cyclone Winston had cyclone cover from insurance companies.

The aim of the Global Partnership is to increase the resilience of developing countries and protect the lives and livelihoods of poor and vulnerable people against the impacts of climate change and against natural disasters.

While the partnership is meant to enable governments to react faster and more effectively following a natural disaster it is also meant to support and enhance the future efforts of governments to prepare to meet risks posed by climate change and natural disasters.

It will link these preparations to the use of risk finance and insurance.

Edited by Ranoba Baoa

Photo: Office of the Attorney General COP23 President Voreqe Bainimarama and Head of Fijian Delegation Aiyaz Sayed-Khaiyum display Fijian National Plan in Bonn, Germany.

Photo: Office of the Attorney General Fijian High Commissioner in New Zealand Filimoni Waqabaca (right) and other officials in Bonn, Germany.