Investigating micro-insurance for flood risk
According to Kamleshan Pillay, given the current state of international climate policy and the lack of ambition shown in the INDCs of countries, adaptation is going to be especially essential in the future.
GCI PhD bursar Kamleshan Pillay, funded by Exxaro, is undertaking research relating to how a micro-insurance product can be developed to manage flood risk at the community level in the Western Cape.
“A common barrier to both mitigation and adaptation has been the aspect of financing. I am very interested in financial innovation related to adaptation and how new products can be developed to stimulate flows for resilience. My research will focus on three pillars: quantifying flood risk in the region under climate change scenarios; understanding the current financial strategies used by communities to manage climate risks; and, assessing the financial sustainability of the mechanism,” says Kamleshan.
He adds, “The research I’m doing is interesting because it speaks to the uncertainty of how climate risks will increase in frequency and intensity. Furthermore, given the reluctance of international organisations to finance adaptation beyond the provision of grants and private sector disinterest in adaptation owing to a lack of potential revenue, the field of adaptation finance allows for greater latitude in pursuing innovative and cutting-edge ideas.”
Kamleshan is doing his PhD by publication. He has completed 2 of 5 papers and is currently working on his 3rd.
He is taking an interdisciplinary approach as this is required for the methodology used to develop micro-insurance products addressing weather risks. “Climate insurance products are mostly index-based which means that losses are based on environmental parameters; therefore, methods require knowledge of climate and actuarial science. I have taken Honours and Masters level mathematics courses to address the actuarial science component for my research. Despite the course-work being challenging, I have a love of anything quantitative so it has been extremely rewarding,” explains Kamleshan.
He has hopes that his research will be translated in to something practical. “If the research is able to illustrate these products can yield profits while reducing vulnerability, then private actors in the financial sector (in South Africa) could be interested in further product development,” concludes Kamleshan.
雷速体育_雷速体育直播 Kamleshan Pillay: He completed his undergraduate and first Masters at UKZN. His first Masters degree was based on the development of optimisation methods for increased biofuel yields from algae. He also has a second Masters from the University of Cambridge in the UK in Environmental Policy. With regard to work experience, he has worked in consulting for several years on various projects relating to climate change, climate finance and adaptation finance.