• Extreme weather events, accounting to the climate crisis, have become a common phenomenon in recent years. Flooding in citieslike Mumbai, Hyderabad and Bengaluru can be often heard in the news. More recently, north India was severely affected by heat waves that shrunk the wheat crop production in the rabi season.
• Although these extreme climatic changes affect all, they hit the poorest and the vulnerable the worstand reduce their chances of improving their socioeconomic status.
• More than half of the world''s population currently lives in cities and urbanisation continues to expand. With this growth, the numbers of the urban poor are increasing,particularly in developing countries. The urban poor are especially vulnerable to climate change because their homes are frequently located in hazardous areas.

Climate Change Affect the Urban Poor

• Makes them More Prone to Disasters:Poor people living in slums are at particularly high risk from the impacts of climate change and natural hazards.
  • They live on the most vulnerable lands within cities;typically areas that are deemed undesirable by others and are thus affordable and are exposed to the impacts of landslides, sea-level rise, flooding, and other hazards.
• Socio-Economic Impacts:The consequences of extreme weather events such as frequent flooding or heat waves is the loss of workdays, livelihoods, housing and critical economic assets.
  • The strong hit to the economy is coupled with adverse health impacts; increased morbidity and mortality from vector-borne diseases and heat strokes.
• Loss of Housing and Assets:Housing and asset loss and damages are other significant concerns, especially during floods.
  • This is further exacerbated by overcrowded living conditions, lack of adequate infrastructureand services, unsafe housing, inadequate nutrition, and poor health.
• Impacts of Delayed Responses: The speed of response remains the most critical factor for addressing the vulnerabilities of the poor. Delayed response aggravates lossesand protracts rehabilitation, adversely affecting resilience.

Shield the Urban Poor from Climate Change

• Insurance Scheme: An insurance scheme can boost resilience at the household level. There are insurance products that cover both house and household assets, but not many people avail of them. Given the heterogeneity of the clientele, the industry must design products for specific segments.
  • The State may have to intervene to address the needs of those with the lowest purchasing power.
  • A Prime Minister Grih Bima Yojnafor the poor must be instituted on the lines of Prime Minister Fasal Bima Yojna.
• Minimising Response Time:Reducing the time between exposure to climate risk and the accrual of benefit is necessary whether from the State or insurance firms.
  • The direct benefit transferarchitecture can be leveraged, expanding its scope in response to the policy action.
  • The insurance industry can plug into the State delivery system along with a simplified process of claim-making.
• Integrated Interventions in Key Areas:Strengthening the resilience of urban poor will require integrated interventions across six policy areas (social protection, public health, livelihood, housing, community infrastructure, and urban planning) at different scales (household, community, and city levels).
  • Three enabling factors – capable, accountable, and responsive governance; climate and urbandata; and climate and urban finance − need to be put in place to ensure that pro-poor climate resilience solutions promote transformational change to address the underlying drivers of vulnerability.
• Data Capturing and Sharing:Satellite imagery could be used to identify flooded areas, and government databases of such localities could be used to identify beneficiaries.
  • Insurance claims could be directly transferred without the beneficiary raising a claim. This can be made possible by a new purpose-driven data-sharing agreementbetween the State and the industry.
• Role of Local Governments:City governments are the drivers for addressing risks. Local governments play a vital role in providing basic services which are critical to improving the resilience of the urban poor.
  • City officials can build resilience by mainstreaming risk reduction into urban management.
    • Climate change adaptation and disaster risk reduction can be best addressed and sustained over time through integration with existing urban planning and management practices.
      • In this context, a major challenge would be financial dependence of the local governments on state and central governments; hence, significant financial support is needed.

Sufficient response and synergies between the State’s policy imperatives and the insurance industry are necessary for easing the vulnerabilities of the poor. Leveraging technology and partnerships between State and industry can facilitate speedy and timely responses to climate calamities and build the resilience of the urban poor.