As extreme weather events intensify globally, the need for insurance solutions that safeguard vulnerable communities from climate-induced risks has grown substantially. Inclusive insurance offers a vital financial safety net for  communities facing increasingly severe and unpredictable climate events. However,  awareness and acceptance of inclusive climate insurance solutions remains limited, underscoring the necessity of effective  communication strategies that would resonate with those most at risk.

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On October 24, 2024, SLYCAN Trust hosted a discussion at the International Conference on Inclusive Insurance 2024 in Kathmandu, Nepal, focusing on strategies for communicating inclusive climate insurance. The event brought together 20 global participants representing diverse perspectives to discuss the critical role of narratives in conveying the benefits and mechanisms of climate insurance to vulnerable communities.

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Key insights from the event

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Current landscape of inclusive insurance

The session began with a case simulation where the participants shared experiences with existing  microinsurance and parametric insurance models  and their communication strategies. Participants stressed the need to tailor insurance products to specific climate-related vulnerabilities faced by different regions. 

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Despite their potential, barriers such as  high premiums, operational complexities, and limited trust - impede the effectiveness of these tools.Even with subsidies, high costs remain a challenge, while the technicalities of parametric insurance, such as climate triggers for payouts, can be overwhelming for short-time users. Misunderstandings about contract terms and lengthy claims processes further erode trust, particularly among rural low-literacy populations.  

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In vulnerable regions like Nepal’s Karnali area, where the impacts of climate change are severe, insurance solutions may not adequately address the unique needs of local communities. To effectively support at-risk populations across diverse geographies, the insurance industry must prioritize developing innovative, affordable, and accessible solutions that bridge these gaps. Overcoming these challenges requires clear, culturally and regionally relevant communication strategies that build trust and simplify the user experience.

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Opportunities to improve communication and engagement

Inclusive insurance offers unique opportunities for vulnerable communities when communicated effectively and can play a crucial role in raising global climate awareness.  Here are some strategies proposed by  participants for developing impactful communication around climate insurance:

Effective communication can enhance the adoption of inclusive insurance while promoting climate awareness. Key strategies include:

• Simplifying messaging: Avoiding jargon and explaining insurance concepts in plain language using glossaries or FAQs, infographics, animated videos and testimonials to make the information relatable. 
• Cultural relevance: Framing insurance as a tool for family welfare and aligning messages with local values and needs, particularly for smallholder farmers and women-led households. Tailoring communication to diverse audiences using local dialects and examples can enhance trust and relevance.
• Partnerships and outreach: Collaborating with local organisations, cooperatives, and microfinance institutions to deliver workshops and leverage community-centered communications channels, such as radio, mobile apps, and social media, can bridge knowledge gaps and improve engagement.

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Innovative communication techniques

Innovative approaches can further simplify complex concepts and expand outreach:

‍Gamification:   Interactive tools, such as risk calculators or simulations,  help users understand potential losses and benefits of insurance

Mobile messaging: SMS updates and chatbots provide timely communication, including policy updates and premium reminders, enhancing accessibility in low-infrastructure areas. 

Community ambassadors: Empowering trusted local influencers,  such as mothers, or community leaders, to act as insurance advocates can foster credibility and adoption.  

Conclusion

Developing clear, empathetic, and culturally relevant narratives is crucial to increasing the adoption of inclusive climate insurance. These efforts can empower communities to understand and mitigate climate risks while fostering broader climate awareness. 

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^{ClimaComms is an initiative of SLYCAN Trust aimed at supporting and empowering communicators in enhancing evidence-driven and science-based communication on climate change. Through capacity-building on technical aspects related to climate change and providing spaces for enhancing and scaling up climate literacy and communication processes, this initiative has as its objectives to better engage journalists, media professionals, and communicators from across the world to build climate awareness, raise climate literacy and contribute to scaling up evidence and science-driven climate action at all levels.}