News

The need for robust financial protection against the adverse impacts of climate change has never been more urgent. Recognising this imperative, the Access to Insurance Initiative (A2ii) with support from the International Association of Insurance Supervisors (IAIS) is working with the Superintendencia General de Seguros de Costa Rica (SUGESE) to foster inclusive insurance markets. These efforts will also feed into Costa Rica's broader work on scaling up financial protection with the G7/V20 initiative of the Global Shield against Climate Risks.

Climate change poses significant threats to vulnerable people and countries, exacerbating the frequency and severity of climate-related disasters. Inclusive climate risk insurance schemes and reinsurance have emerged as important tools to manage the financial burden of these catastrophes, increasing financial resilience of vulnerable people. By providing financial protection against asset damage, economic losses, and aiding in recovery efforts, insurance plays a pivotal role in mitigating the socio-economic impacts of the adverse effects of climate change.

In Costa Rica, the A2ii supports SUGESE to identify areas to strengthen insurance supervision, which will inform the Global Shield process. These interventions will focus on assessing aspects of the regulatory and supervisory framework, supporting capacity building where needed, and raising awareness among stakeholders about the importance of sound supervision in addressing vulnerabilities associated with climate risk.

We look forward to the successful implementation of this initiative in Costa Rica, which will serve as a model for other countries seeking to enhance their climate resilience through effective insurance solutions. Together with the Global Shield Secretariat, the A2ii is currently exploring further possibilities to support insurance supervisors in Global Shield countries.