Start Network has announced its new financial service – Start Ready – will be providing protection to people at risk in six countries against climate shocks.
|23 May 2022Start Network has announced its new financial service – Start Ready – will be providing protection to people at risk in six countries against climate shocks. |
Start Ready is a new financing mechanism that enables frontline humanitarians to access early, predictable funds. The unique financing enables national and local institutions and NGOs to collectively analyse and quantify crisis risks, in anticipation of expected shocks. Using scientific modelling of data and best practice from insurance, financial, and humanitarian sectors – Start Ready pools risks and allows financing to stretch up to three times further than traditional humanitarian funding.
Funding can now be disbursed to any of the six countries that applied for protection against heatwaves, droughts, floods and cyclones. Funding will be disbursed based on the prediction of a climate shock, using live data and scientific modelling. The countries, and events include:
Bangladesh – Flood
The Democratic Republic of the Congo – Flood
Pakistan – Heatwaves, Flood and Drought
The Philippines – Cyclones
Senegal – DroughtZ
imbabwe – Drought
“I am extremely happy to see this milestone achievement in the international risk financing architecture. We are delighted to have contributed to this project reimagining pre-arranged financing to better protect people against disaster and climate shocks since the beginning, both through technical exchange and funding through the Global Risk Financing Facility. In a space full of new ideas and good intentions, Start stands out by not only being bold in their vision, but consistently turning ideas into action and delivering impact.” Benedikt Signer, Crisis and Disaster Risk Finance Program Coordinator for the World Bank, Singapore
An initiative of Start Network, Start Ready builds on the network’s experience in supporting locally led disaster risk financing systems. Start Network’s aim is to transform the global humanitarian system and catalyse a new way of preparing for crises, with locally led and early action embedded to encourage more resilient communities.
“Start Ready is yet another innovative solution from the Start Network that will provide rapid anticipatory-disaster financing for local communities in Africa. It perfectly complements the existing framework of the African Risk Capacity which provides insurance coverage for countries at the macro level, humanitarian agencies and NGOs through ARC replica, thereby strengthening resilience to climate change for the most vulnerable groups”. Lesley Ndlovu – CEO African Risk Capacity Ltd.
Start Ready was launched at COP26 in November 2021, with seven donors committing funding. Start Network is appreciative to the UK Foreign, Commonwealth & Development Office, Margaret A. Cargill Philanthropies, IKEA Foundation, Irish Aid, the French Ministry for Europe and Foreign Affairs and the Netherlands Ministry of Foreign Affairs, for their support and recognition that innovation around anticipatory crisis action is now more urgent than ever, to protect increasing vulnerable populations against more frequent and predictable climate shocks.
“The IDF Risk Modelling Steering Group is proud to have collaborated with Start Network in developing this innovative financial mechanism via technical support and by coordinating crucial private sector contributions of tools and expertise. We hope to see Start Ready help members better respond to crises in this first year of operation, and grow substantially in subsequent years, and stand ready to support the Start Network further in this effort. Ekhosuehi Iyahen -Secretary General, Insurance Development Forum
Organisations such as Insurance Development Forum ( Risk Modelling Steering Group with Renaissance Re and Aon), African Risk Capacity Ltd, Centre for Disaster Protection, the World Bank along with a host of Start Network members and local organisations have been part of Start Ready’s development.