cover image: Focus Group: Risk  Vulnerable Twenty (V20) Group of Ministers of Finance

20.500.12592/hngbsm

Focus Group: Risk Vulnerable Twenty (V20) Group of Ministers of Finance

19 Oct 2021

Given the current fragmentation and rather arbitrary, ad-hoc and non-transparent provision of PCS to individual pools, governments and insurance schemes, the development of a reliable, rules-based provision of PCS and a coordinated and transparent delivery structure is key to increase the uptake of CDRFI in light of constrained financial resources and competing development priorities. [...] • The provision of PCS needs to be flexible to adjust sufficiently to the changing current and future climate risks and depending on the level of warming above pre- industrial levels by the 2030s. [...] Principle 5: (T) Transparency and Accountability - Unrestricted information on premium and capital support and payouts • The performance of PCS should be evaluated based on the sharing of timely, relevant, adequate, and comprehensive information, so as to build evidence and learn in the medium and long-term. [...] In line with some of the specific requirements of the principles and building on the MCII Background Note on Further Taxonomic Considerations of Premium and Capital Support and Allocation Aspects, the following key considerations should affect international decision-making on the allocation of PCS, its size and the time span for which it is provided. [...] As mentioned in (2), additionally to the request for a rules-based provision of PCS in line with the five SMART Principles outlined in section II and the accounting of individual V20 country characteristics when deciding upon the allocation, amount and period for which PCS is provided, as stated in section IV, the fragmentation and in-transparency of the international delivery structure of PCS nee.

Authors

seifert

Pages
11
Published in
Switzerland