Speaker: Mr. Angelo Tan, Country Lead – Green & Resilient Buildings, Climate Business Department, International Finance Corporation, World Bank Group

Only 19% of the cyber security decision makers are fully confident that cyber insurance will cover their cyber risks in 2023 according to a new research report. The research report published by CSI cyber solutions company says that less than a third (29%) of the respondents were fully confident that they were compliant with the new stricter terms that insurance companies are now stipulating. A report about the research published in securitybrief.co.nz says the rise of ransomware attacks, and insurance companies paying hundreds of millions in cyber security-related claims each year are being blamed for organisations now facing rising cyber insurance rates, tightening of standards, and limiting coverage. The true cost of ransomware is, however, in fact much more when the cost of downtime and reputational damage is factored in. CSI chief technology officer Nick Westall said, "Whilst cyber insurance stands as a good option in enabling firms to protect their financial security the tightening of standards means that some companies could find that they are without cover if they are not demonstrating a strong security posture and are attacked. He said, “Those who are fully confident in their insurance will place a higher importance on the value of these controls to cover their cyber risk in 2023.” Source: asiainsurancereview.com

Earthquakes in Türkiye and Syria The Head of UNDRR, Ms Mami Mizutori, issued a statement on the 6 February earthquakes that devastated southeast Türkiye and northwest Syria. This is one of the biggest disasters to impact the region in recent times. The full support of the international community is needed to help those affected and to ensure that cities and towns are built back better. This crisis will be a true litmus test for global generosity, solidarity and diplomacy. Regional Platform in the Americas and the Caribbean Science, technology and early warning systems are the themes for the 8th Session of the Regional Platform for Disaster Risk Reduction in the Americas and the Caribbean. Convened by UNDRR and hosted by Uruguay, from 28 February to 2 March, the Regional Platform is a critical mechanism to monitor and advance progress in the implementation of the Sendai Framework for Disaster Risk Reduction. As a hybrid event, many of the sessions can be watched online. Main Findings and Recommendations of the Midterm Review As the Sendai Framework enters its midpoint, a report on the main findings and recommendations of the midterm review process has been published online. The report summarizes submissions and inputs provided by Member States and non-State stakeholders and others. The findings and recommendations will inform deliberations on a Political Declaration expected to be adopted at a High-Level Meeting of the UN General Assembly, planned for 18-19 May at the UN Headquarters in New York. Launch of EW4All in the Caribbean To mobilize support for the implementation of the Early Warnings for All (EW4All) initiative, a regional launch event was organized by UNDRR and partners in Bridgetown, Barbados, on 1 February. The event was hosted by the Prime Minister of Barbados, Mia Mottley, and was attended by regional leaders and the heads of UN agencies. Sudan’s National Platform Sudan held its second National Platform for Disaster Risk Reduction in Khartoum on 13-14 February, with support from the UNDRR Regional Office for Arab States. Organized around the theme of ‘early warning and early action for flood risks, torrents, and drought,’ the platform was an important opportunity to bring together government ministries and stakeholders to reflect on the progress made and the challenges that lie ahead and raise awareness about the various hazards facing Sudan. Understanding and communicating existing and future risks The 3rd European Forum for Disaster Risk Reduction (EFDRR) Action-Oriented Dialogue was held on 23-24 February in Bucharest, Romania. Organized by the UNDRR Regional Office for Europe and Central Asia in partnership with Romania, the Dialogue brought together civil protection authorities from across the region to identify ways to enhance evidence-based risk communication as an enabler for disaster risk reduction.

By Herminia S. Jacinto PRICING products is always a difficult task to do. Vehicles, goods and even food products can put together the cost of raw materials, labor and other items to arrive at the total cost. But pricing services and other intangible products is a big challenge. How does one price the cost of an airline ticket, franchise fees, honoraria and other services? How do you price protection? How do insurance companies compute the price of a fire policy which will protect properties from basic dangers like fire, lightning and allied perils? The process is long and tedious. So many factors are considered like the structure and location of the property to be insured, wind conditions, loss experience and other relevant factors. An insurance-property-underwriter-friend of mine said that they wish they could be like fortune tellers who can predict when and where typhoons, floods and other calamities will happen. The Philippine insurance industry has existed for a very long time already and should be considered experts in pricing property and casualty insurance. But there is no such claim. Changes happen everyday, especially climate change. The Philippines is visited by about 15 typhoons every year and the number seems to be increasing. We have had the storm surges, the big typhoons which cause a lot of flooding in several places in the country. Earthquakes have occurred in several places in Mindanao, Quezon and even the Bicol provinces! Our weather experts have warned us about stronger ones so we can prepare just in case they indeed happen. We hope and pray though that we will be spared from what they call the "Big One." The price of protection has increased tremendously all over the world and the supply has started to dwindle due to climate change. Our own government has recognized the importance of this issue and has created our own Climate Change Commission under the Office of the President. The commission is tasked with coming up with policies and measures to combat the disastrous effects of climate change. Among those identified are rising sea levels, extreme rainfall, coastal erosion, increasing frequency and severity of tropical cyclones, among others. It is under this scenario by which the insurance industry has decided to form and implement the Philippine Insurance Catastrophe Insurance Facility (PCIF). The insurance industry and the regulator want to provide maximum protection for catastrophic perils like typhoons, floods and earthquakes, ideally for the entire population of the country. This is the reason why the rates have to be reviewed to make them more risk-appropriate and sustainable. Minimum rates have to be imposed so competition in pricing will be controlled and acceptable to the world reinsurance market. Considering the risks and the frequency of their occurrence, reinsurance is not going to be cheap. Referring now to House Resolution 632 introduced by Rep. Wilbert T. Lee in the 19th Congress which directs the House committee concerned "to conduct an inquiry, in aid of legislation, into the abrupt, unreasonable and untimely increase of catastrophe insurance premium rates,"... (italics mine). It is not fair to accuse the Insurance Commission, the PCIF, and the insurance industry in general that this regulation is abrupt and unreasonable. The industry association, the Philippine Insurers and Reinsurers Association, has conducted a long and serious review and study of these rates with the assistance of experts in the actuarial field and global reinsurers. Understandably, consultations with consumer groups and the insuring public are difficult because of the technical issues involved. Insurance pricing cannot be compared to pricing of goods like sugar, onions and agricultural products. We hope there will be another hearing that will be scheduled by Congress with experts on catastrophe risks who will be invited. We also suggest that representatives from the Climate Change Commission and the Department of Environment and Natural Resources be invited to provide the data based on their research findings and experience. This will be a good opportunity for our lawmakers to appreciate the role of insurance in protecting our people and their properties. Source: manilatimes.net

PSI 2023 Work Programme – For Information Net-Zero Insurance Alliance (NZIA)- Members of the NZIA are currently working to independently set science-based, intermediate targets for their respective insurance and reinsurance underwriting portfolios as outlined in Version 1.0 of the NZIA Target-Setting Protocol. As shared in the February NZIA Member Update, the PSI Secretariat is available to answer any questions members may have about the target setting process. The NZIA Life and Health Workstream is in the process of developing a white paper on the role of life and health insurance business in net-zero. The paper is scheduled to be released later this year. Seth Eshun has recently joined the PSI Secretariat in the role of NZIA Project Coordinator. Seth comes to the NZIA with extensive experience in the insurance sector, including as Head of Supervision at the National Insurance Commission of Ghana. White Paper on Nature-Positive Insurance- Thank you to all members who participated in the workshops held in February to inform the development of the Nature-Positive Insurance White Paper. The insight shared by the membership was extremely valuable and we look forward to releasing the final paper later this year. PSI Canadian Taskforce- As part of UNEP FI’s North America Regional Roundtable, the PSI Canadian Taskforce will be presenting its work on closing the protection gap. The group’s full paper will be shared with the PSI membership later this year. UNEP FI Regional Roundtables- For Action UNEP FI will be holding five Regional Roundtables on Sustainable Finance over the course of 2023. The roundtables provide an opportunity for members to come together locally to discuss the latest trends, innovations and share good practices. The North America Regional Roundtable was held 1-2 March 2023 in Toronto, Canada. The next roundtable will be the Asia Pacific Roundtable 24-25 May 2023 in Seoul, South Korea. Registration is free to UNEP FI members and the public (click here to register). Upcoming Regional Roundtables: • Africa Middle East: 14-15 June, Windhoek, Namibia • Latin America and the Caribbean: (TBC) • Europe: (TBC) Upcoming Events and Recorded Webinars– For Action Workshop on Climate Risk Management and TCFD in the MENA Region (14 March and 20 March, 13:30-15:30 CET) - UNEP FI, in collaboration with the Green for Growth Fund Technical Assistance Facility (GGF TAF) will deliver a series of online workshops on Climate Risk Management and TCFD. (To register, please fill out the application form by Friday, 3 March 2023) Recorded Webinar on Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) project consultation - In this webinar, the ASCOR and Transition Pathways Initiative team will introduce the ASCOR framework and its methodology and will also answer audience questions. Click here to watch the recording) Reminder Membership Requirements – For Action PSI Disclosures – As a condition to maintain the PSI membership, all Signatories are required to submit an annual disclosure outlining how your organization is implementing the Principles for Sustainable Insurance. All members who joined in 2021 or before must make sure that your 2021 disclosure is available on the PSI website. Please click here for more information on the disclosure process. New Members of the PSI- For Information We would like to take the opportunity to welcome Reale Group, Sonepar International RE SA and TM Tryggingar as the newest members of the PSI. Other Updates from UNEP FI – For Information Climate Risk and TCFD Programme- If you are looking to learn from peers and climate experts while exploring the most pressing climate risk topics, join our 2023 Climate Risk and TCFD Programme! Since 2017, UNEP FI has worked with over 100 financial institutions and over a dozen partners to advance best practices in climate risk and opportunity identification, assessment, management, and disclosure. Complete the information form to join us or find out more. Finance Leadership Group on Plastics- This new group of around ten banks and insurers will provide input and suggestions to the Intergovernmental Negotiation Committee (INC) on the desired outcomes of the historic international legally binding agreement to end plastic pollution by 2024 endorsed by UN Member States last year. To get involved, please contact Peggy Lefort. Opportunity to Join Just Transition Consultative Committee and Human Rights Community of Practice-The Just Transition Consultative Committee will provide feedback on guidelines and practical resources for financial institutions on a just transition. The Human Rights Community of Practice will give feedback on the development of a human rights resource kit for members. To find out more, or get involved, please contact Joana Pedro.

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