{"id":88697,"date":"2024-12-17T00:00:00","date_gmt":"2024-12-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/"},"modified":"2024-12-17T00:00:00","modified_gmt":"2024-12-17T00:00:00","slug":"drought-ins-fails-to-support-vulnerable-nations","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/","title":{"rendered":"Drought ins. fails to support vulnerable nations"},"content":{"rendered":"

Ins. for risk management is not the solution it seems to be for <\/strong>developing nations: <\/strong>African countries \u2014 that contribute the least to climate change but lose 15% GDP per capita to climate shocks annually\u2014 are increasingly turning to parametric ins. to manage the financial risks of climate-related disasters, but the benefits are proving to be limited, Bloomberg<\/a> reports. <\/p>\n

Why is this the case? <\/strong>Most ins. schemes supporting the developing nations are parametric, meaning that payouts are pre-determined and are only triggered after specific criteria are met rather than a compensation released based on the sustained damage assessment. While the approach can provide faster relief, and compensate for slow funding, it also means no payouts if the cutout is missed by a hair or low payouts despite major damages in some cases. For nations unable to access international lending markets due to their debt burdens, such as Zimbabwe and Zambia, parametric ins. is sometimes the only option and appears as a lifeline despite its drawbacks. <\/p>\n

(** Tap or click the headline above to read this story with all of the links<\/strong> to our background and outside sources.)<\/p>\n

More on the drawbacks: <\/strong>While the ins. may seem useful at face value, it also presents some problems, such as being based on how much the policymaker can afford rather than on the assessed damages. Malawi, for example, experienced severe enough drought to trigger the policy but only a few villages benefitted from the population of 20 mn. Large-scale losses are rarely addressed through this model, and there is a misalignment between the triggers for ins. and the actual losses. <\/p>\n","protected":false},"excerpt":{"rendered":"

Parametric ins. is commonly used but the model has its drawbacks<\/p>\n","protected":false},"author":1,"featured_media":88698,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[157],"tags":[156,11,164,501],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-88697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-in-the-news","tag-climate-in-the-news","tag-enterpriseclimate","tag-green-finance","tag-mitigation","wpautop","entry"],"acf":{"mongo_id":"2e7beed0-7b1a-4ef4-8d47-346929414d63","order":"10","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/12\/244.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Drought ins. fails to support vulnerable nations","related_issue":[88679],"teaser":"Parametric ins. is commonly used but the model has its drawbacks","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/12\/.5ecd4dac-b809-4a18-9fe2-06ef8c9de55c.mp3"},"yoast_head":"\nDrought ins. fails to support vulnerable nations - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Drought ins. fails to support vulnerable nations\" \/>\n<meta property=\"og:description\" content=\"Parametric ins. is commonly used but the model has its drawbacks\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\" \/>\n<meta property=\"og:site_name\" content=\"Climate\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-17T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Drought ins. fails to support vulnerable nations\",\"datePublished\":\"2024-12-17T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\"},\"wordCount\":270,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1\",\"keywords\":[\"CLIMATE IN THE NEWS\",\"EnterpriseClimate\",\"green finance\",\"mitigation\"],\"articleSection\":[\"CLIMATE IN THE NEWS\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\",\"url\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\",\"name\":\"Drought ins. fails to support vulnerable nations - Climate\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2024-12-17T00:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/climate\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Drought ins. fails to support vulnerable nations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/#website\",\"url\":\"https:\/\/enterpriseam.com\/climate\/\",\"name\":\"Climate\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/climate\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/#organization\",\"name\":\"Climate\",\"url\":\"https:\/\/enterpriseam.com\/climate\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/25470.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/25470.svg\",\"caption\":\"Climate\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/climate\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/climate\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/climate\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Drought ins. fails to support vulnerable nations - Climate","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/","og_locale":"en_US","og_type":"article","og_title":"Drought ins. fails to support vulnerable nations","og_description":"Parametric ins. is commonly used but the model has its drawbacks","og_url":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/","og_site_name":"Climate","article_published_time":"2024-12-17T00:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/climate\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Drought ins. fails to support vulnerable nations","datePublished":"2024-12-17T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/"},"wordCount":270,"publisher":{"@id":"https:\/\/enterpriseam.com\/climate\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1","keywords":["CLIMATE IN THE NEWS","EnterpriseClimate","green finance","mitigation"],"articleSection":["CLIMATE IN THE NEWS"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/","url":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/","name":"Drought ins. fails to support vulnerable nations - Climate","isPartOf":{"@id":"https:\/\/enterpriseam.com\/climate\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1","datePublished":"2024-12-17T00:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/climate\/2024\/12\/17\/drought-ins-fails-to-support-vulnerable-nations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/climate\/"},{"@type":"ListItem","position":2,"name":"Drought ins. fails to support vulnerable nations"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/climate\/#website","url":"https:\/\/enterpriseam.com\/climate\/","name":"Climate","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/climate\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/climate\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/climate\/#organization","name":"Climate","url":"https:\/\/enterpriseam.com\/climate\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/climate\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/25470.svg","contentUrl":"https:\/\/ent.news\/internal\/25470.svg","caption":"Climate"},"image":{"@id":"https:\/\/enterpriseam.com\/climate\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/climate\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/climate\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/climate\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2024\/12\/244.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pgVl2y-n4B","_links":{"self":[{"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/posts\/88697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/comments?post=88697"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/posts\/88697\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/issue\/88679"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/media\/88698"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/media?parent=88697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/categories?post=88697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/tags?post=88697"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/brand?post=88697"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/climate\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=88697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}