Our WHS Commitments
Launching insurance products for NGOs
Start Network's Commitment
We pledge to launch insurance products that transfer risk for NGOs and protect the most vulnerable people from climate and health shocks.
Meeting our Commitment
The Start Network is developing two new financing instruments which aim to unlock the ability of NGOs to respond early to emerging drought crises. The initiatives will increase the number of vulnerable people protected from climate shocks and enable faster, pre-planned and collaborative responses to mitigate the impact of droughts.
Both instruments aim to release funds quickly and predictably in major emerging droughts; one instrument is at the macro level and the other at the meso level. Underpinning both is disaster risk financing approach that includes:
• Science-based risk modelling to understand drought in our areas of operation
• Contingency planning to mitigate the impact of drought on vulnerable communities
• Pre-positioned financing to deliver response plans.
The pre-positioned financing includes parametric insurance mechanisms that automatically release funding based on pre-defined triggers of emerging major drought. In each case, funds would be distributed to the Start Network’s frontline NGOs, which would be ready to scale up activities to protect communities at risk.
The Start Network is prototyping these approaches in four locations; Senegal, Mali, Pakistan and Zimbabwe. The preliminary design process is expected to conclude mid 2017, with active pilots scheduled for 2018.