Insurance industry must step up to tackle global crises, says UNDP’s Stander

“Without insurance, there is no investment in the future. And without investment in the future, there is no future.” That is the main message of Daniel Stander, special advisor to the United Nations Development Programme (UNDP) and deputy chair of the Resilient Cities Network.

Speaking to Monte Carlo Today, Stander argued that in a world increasingly destabilised by interconnected crises—food insecurity, energy shortages, and political unrest—insurance is becoming more important.

“Now more than ever, given climate and geopolitical stresses, we need a new, longitudinal approach to financial resilience,” he said.

“It’s not enough just to transition away from this or that. Rather, we must transform interconnected systems—food, energy, transportation, health, and social systems, as well as land and water systems,” he added.

Stander outlined several initiatives that highlight insurance’s expanding role in securing the future. One is the Tripartite Agreement, a partnership between UNDP, the German government and the Insurance Development Forum, which is working to build financial resilience to climate risks in over 20 countries. 

The Financial Resilience in Agriculture programme is another project, covering countries such as Bangladesh, Ethiopia, and India to bolster smallholder farmers’ resilience and protect them from crop failures and environmental shocks. 

UNDP’s SME-focused multi-year partnership with Generali is building resilience in Southeast Asia, and with Milliman the Global Actuarial Initiative is working to better understand, price and manage risk in developing countries.

Marine crisis

As the world moves towards cleaner energy, Stander stresses that transitioning away from fossil fuels alone is insufficient. “The entire ecosystem needs to be transformed,” he stated, highlighting that for energy-poor communities, the lack of access to insurance hampers investment in innovative, clean technologies.

“It is important that we find ways to de-risk new technologies, so we can help energy-poor communities leapfrog traditional, fossil-fuel-based pathways. But without insurance there is no investment—in new solutions or in the reskilling required to deploy them,” Stander explained.

“I’d like to see the market lean in more to this,” he said, calling on insurers and brokers to develop multi-year coverage solutions and partner proactively with governments and corporations to enhance the bankability and insurability of transition strategies. While some insurers have begun adjusting their approaches, especially within their energy portfolios, Stander noted that much more needs to be done across other sectors such as agriculture, construction, property, health, and marine insurance.

Talking about marine, he said hull war premiums “increased 16-fold” following the outbreak of the civil war in Yemen significantly hiking the cost of essential goods, exacerbating food and fuel shortages.

“Since the start of the Red Sea crisis there have, by my count, been 19 significant marine losses and at least three times as many failed attacks on vessels. 

“In that time, rates have doubled again and conditions have tightened. There has been a 68 percent reduction in tanker trade and a 76 percent reduction of container trade transiting the region,” Stander highlighted.

“Scaling up insurance creates increased investment in the economy.” Daniel Stander, UNDP

He believes that by working with development partners, the insurance industry can make a huge difference in fragile conflict settings.

“Scaling up insurance creates increased investment in the economy, greater social protections for people, and reduced budgetary pressure on governments,” he said.

“More is needed to meet the growing demand for long-term partnerships and to ensure the insurance industry continues to be an enabler of the future,” Stander concluded.

For more news from the Rendez-Vous de Septembre (RVS) click here.

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