On November 8th, MIGA hosted a virtual event titled “Accounting for Climate Risks in Political Risk Insurance Ratings” in the MDB Pavilion at COP26, and the event was live-streamed on our YouTube, Twitter, and LinkedIn channels.

Date: November 8th (Monday)

Time: 8:45-9:45 am (Washington DC) / 1:45-2:45 pm (Glasgow)

Climate change is fundamentally changing ecosystems, livelihoods and economies in all parts of the world, but impacts are not uniformly distributed. Global leaders recognize the challenge of climate change, made commitments to reduce greenhouse gas emissions in the 2015 Paris Agreement, and are in the process of raising the ambition of those commitments.

Given the growing impact of both physical climate risks and of the consequences of the currently accelerating transition to low-carbon economies, including consideration of these risks into political risk ratings at the country level is critical and can enhance their accuracy. This in turn enables a better understanding of the political risk environment in a given country and the adaptation of insurance pricing.

In order to refine the inclusion of climate risk impacts into country-level political risks, it is important to include both qualitative considerations as well as amplifying or mitigating factors. Especially the latter can significantly define the actual impact of climate risk at the country level, depending on the country’s larger social, economic and political context.

For each (sub-)category of climate risks, MIGA has conducted its analysis to identify specific drivers and their transmission channels into country-level political risks, together with a number of data sets designed to quantify and measure their impact as much as possible. The relevant indicators are based on currently available literature demonstrating the link between climate and political risk impacts as well as the availability of the datasets and reinforced by in-house quantitative analysis as to their statistical significance for the prediction of political risk insurance ratings.

Moderator

		Sarvesh Suri Director for Climate, Energy, Extractives, Capital & Financial Markets Operations, MIGA

Speakers

		Moritz Nebe Sector Manager, Economics Unit, Economics & Sustainability Department, MIGA
		Christopher Millward Sector Manager, Capital & Financial Markets Operations, MIGA
		Yasser Ibrahim Sector Manager, Environmental & Social Sustainability & Climate, MIGA
		Mena Cammett Senior Risk Management Officer, MIGA

Please contact us at migaevent@worldbank.org if you have any questions.

Sincerely,
MIGA Events Team