Natural disasters already cost the global economy more than USD 300 billion
on average per year as well as having a major impact on people’s well-being. Much of this burden falls on the public sector
and the fiscal impact on a government’s budget can be sizeable. The combination of climate change, a growing population and increasing exposure of assets will amplify this catastrophic impact.In the face of natural disaster risks, sovereign and sub-sovereign entities are increasingly moving towards a proactive approach using parametric insurance. This type of insurance uses natural hazard parameters to trigger fast payouts
, providing a quick, flexible and transparent disaster risk financing solution.To build resilience and contribute to sustainable and inclusive economic development, AXA Climate provides parametric insurance solutions to all levels of governments, working closely with international institutions such as the World Bank
and the United Nations
through the Insurance Development Forum.
AXA Climate can support in the modelling, design and establishment of such solutions and already acts as a lead reinsurer and technical advisor for many of the major Public-Private Partnerships covering natural catastrophe risks such as the Caribbean Catastrophe Risk Insurance Facility (CCRIF), the Pacific Catastrophe Insurance Company (PCRIC) and the African Risk Capacity (ARC).