The UN Development Programme announced on Monday that it has launched an initiative to assist governments and the private sector in developing countries in providing insurance for crises such as pandemics and natural disasters.
According to the UNDP, disaster recovery costs the world’s 77 poorest countries an average of $29 billion every year.
Only 3% of this cost is covered by insurance, leaving governments to foot the bill for recovery or rely on humanitarian aid, according to the UNDP.
The German government has pledged 35 million euros ($41 million) to the Insurance and Risk Finance Facility, according to the UNDP.
According to a UNDP spokesperson, the facility will also get money from other sources, including the UNDP itself.
By 2025, the UNDP hopes to assist in the creation of insurance protection against socioeconomic, climate, and health-related disasters in more than 50 developing countries, according to the UNDP.
The UNDP stated that as part of the programme, it will collaborate with governments on climate risk modeling.