Humanity Insured, a UK- and US-based non-profit organisation, has launched an initiative to help vulnerable communities build climate resilience through innovative insurance solutions.

The organization, backed by the insurance sector, aims to leverage private and philanthropic capital to provide insurance coverage to 3.6 billion people living in areas most vulnerable to the impacts of climate change.

As part of its 2024 Agenda, Humanity Insured has committed to achieving its mission in partnership with the Clinton Global Initiative.

The nonprofit’s approach focuses on financial resilience as a key factor in climate preparedness. By subsidizing a portion of insurance premiums, Humanity Insured provides a safety net for those most at risk from climate-related events. The initiative addresses the ongoing challenge of climate shocks, which destabilize communities and livelihoods, often leaving them without timely financial support.

One innovative strategy Humanity Insured is using satellite insurance, which ensures funds are disbursed quickly in response to climate-related events. This model helps prevent natural disasters from escalating into crises by providing rapid financial assistance.

The certainty that insurance protection provides allows individuals and communities to focus on long-term planning, including investing in education and climate-resilient agricultural practices.

Charlie Langdale (pictured above), CEO of Humanity Insured, said the security provided by insurance enables people to invest in their livelihoods and manage the risks posed by climate change.

“This is an essential response in an increasingly volatile world that relies on post-event financing,” said Langdale. “Humanity Insured will not only prevent households from adopting negative coping strategies after climate shocks, but through financial preparedness, the most vulnerable are able to proactively manage the climate risks they face.”

Efforts of the Believing Humanity Foundation

Humanity Insured was founded with support from the global insurance industry, led by Howden, an international insurance brokerage group. The organization received initial funding from seven global insurance companies, including Allianz, Hiscox, The Fidelis Partnership, Tokio Marine Kiln and Beazley.

A newly appointed board of directors, made up of experts in development, finance and climate, will oversee the nonprofit’s activities and ensure the initiative’s goals are achieved.

Since gaining UK charitable status in July 2024, Humanity Insured has approved three grants to support climate adaptation efforts in East Africa and the Pacific.

In Malawi, UNHCR will fund part of the premium for a drought insurance programme that will cover the upcoming planting season. The initiative will also fund a community resilience programme that aims to help refugees and local farmers make the most of the limited land available for farming.

The insurance coverage will support the Dzaleka settlement of refugees and local Malawians by mitigating the economic impact of drought and preventing food insecurity.

Emma Cherniavsky, Chief Executive of UNHCR UK, highlighted the importance of innovative insurance protection for displaced populations who are often among the most vulnerable to climate change.

“Thanks to Humanity Enforced’s leadership and expertise in this area, we hope to expand equitable access to this essential insurance as part of UNHCR’s global humanitarian work, and strengthen the resilience of displaced communities in the face of climate-induced crises,” said Cherniavsky.

Read more: Report calls for action to close Europe’s climate protection gap

Another grant will support One Acre Fund, a social enterprise in East Africa, to support agricultural insurance for more than 200,000 smallholder farmers in Kenya. In the event of a poor harvest, the insurance will provide cash payments to farmers, allowing them to meet household needs and prepare for the next planting season.

According to Joel Ackerman, a board member of One Acre Fund, more than 90% of smallholder farmers remain uninsured, leaving them vulnerable to poverty traps caused by climate shocks. Humanity Insured’s support aims to create financial resilience for these farmers, contributing to global food security.

In Papua New Guinea, a grant was given to Mama Bank, the country’s first women’s microbank, to support insurance coverage for small businesses and farmers affected by drought and heavy rains. Most of these businesses are run by women.

“This initiative will provide women entrepreneurs in Papua New Guinea with access to insurance protection for the first time, giving them the financial security they need to grow their businesses despite climate-related challenges,” said Gunanidhi Das, CEO of Mama Bank.

As Humanity Insured continues its work, it plans to expand its insurance offerings and resilience-building programs to more communities on the front lines of the climate crisis. By making insurance available to the most vulnerable, the organization aims to contribute to broader efforts to build resilience to global climate change.

What do you think of this story? Feel free to share your comments below.