Etherisc Blog D1Conf: KfW Development Bank Revolutionizes Climate Disaster Risk Financing with Insurance

Dr Helke Waelde from KfW Development Bank gave an overview at D1Conf of the bank’s role in Climate Disaster Risk Financing and Insurance.👀 There is a significant opportunity for blockchain technology to make the coordination of climate disaster financing and insurance more transparent and streamlined — watch this space for news on Etherisc’s involvement...The Challenge of Development ShocksClimate shocks exacerbate the difficulties of sustainable development. Whilst developed nations exhibit steady upward growth trajectories in GDP, developing nations suffer significant declines after each climate shock, often taking years to recover. These prolonged recovery times create a vicious cycle.Insurance enhances resilience of Disaster Risk FinancingKfW enables faster recovery after climate shocks by integrating insurance solutions into disaster risk financing⏩ Fast Payouts: Rapid release of funds mitigates escalating costs after disasters.✅ Efficient Capital Use: Governments can allocate resources strategically, without straining budgets.👍 Independence: Enables self-sufficient recovery, reducing reliance on external funding.☀️ Credit Stability: Maintains creditworthiness, ensuring access to ongoing development loans.After a recent flood in Togo, KfW’s insurance mechanism enabled a rapid payout of €6.6 million, which covered loan repayments through insurance. Recovery efforts were therefore quick, minimizing the disaster’s long-term economic impact.What’s next?👀 There is a significant opportunity for blockchain technology to make the coordination of climate disaster financing and insurance more transparent and streamlined — watch this space for news on Etherisc’s involvement…D1Conf: KfW Development Bank Revolutionizes Climate Disaster Risk Financing with Insurance was originally published in Etherisc Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.