Antoine Bavandi, Global Head of Public Sector, Parametric & Climate Resilience Solutions at Gallagher Re highlighted the growing recognition of disaster risk financing and insurance in disaster response during his summary of key takeaways from COP 29 in Baku.
He noted that effective private-sector strategies include risk pooling, public-private partnerships, parametric insurance, and catastrophe bonds. Gallagher Re expects continued growth in sovereign risk transfer and the re/insurance sector as premium financing expands and re/insurance adoption accelerates in developing countries.
During the event, Gallagher Re brought together clients, partners, and industry players to discuss the benefits of a holistic approach to climate and disaster risk finance. The group agreed that subsidies alone are insufficient; combining them with practical solutions and on-the-ground impact is crucial. Gallagher Re shared case studies of its public-sector clients’ engagement with reinsurance, demonstrating how it has not only created business opportunities but also been effective in developing countries.
Bavandi also noted that COP 29 saw multilateral development banks commit to boost their climate financing, while advanced economies tripled the annual New Collective Quantified Goal (NCQG) to USD 300 billion. Although this amount falls short of the funding required for developing countries to adapt to climate change and includes loans as well as grants, it marks a significant step toward mobilizing private financing and other critical capital sources where they are most needed.
He emphasised the vital need to scale up financing for rising extreme, residual, and unavoidable risks. Notably, the Loss and Damage Fund, established at COP 27, is now operational and has received nearly USD 800 million in commitments during the recent meeting in Baku.
Looking ahead, Bavandi said, “As COP 29 concluded, our attention shifts to COP 30 in Brazil, which is set to be a pivotal moment in global climate diplomacy. The stakes are high, as participating countries must submit their updated national climate targets for 2035 ahead of the meeting in Belem. This is a critical step for reaching consensus in our collective global warming targets, and a significant challenge, and we all need to take action.”
He concluded, “For our part, Gallagher Re is actively supporting clients in developed and developing countries to help strengthen climate resilience. Through public-private partnerships, parametric risk solutions, and sovereign risk financing advisory, we are committed to fostering partnerships, sharing knowledge, and driving collective action in the most impactful way.”
