Climate and DIsaster Risk Finance and Insurance
Resilience isn’t built after disaster - it’s financed before it happens
Through financial tools, CDRFI supports preparedness, response and recovery by providing timely and predictable financial resources when a disaster occurs. In many countries, natural disasters undermine sustainable development and climate change is only expected to increase the frequency of such events.
We focus on fostering the growth and enhancement of CDRFI instruments, to strengthen the resilience of poorest and most-vulnerable populations.
Core Expertise
Climate Risk Solutions
We promote the development of tailored and innovative financial and insurance concepts and solutions that address the unique requirements of vulnerable populations in developing and emerging countries.
Climate Risk Impact
We empower vulnerable nations to adapt to climate change, by facilitating comprehensive risk analysis, enabling proactive risk management decisions across governments, businesses, and households.
Climate Risk Insurance
We support and contribute to the creation and introduction of new insurance products, as well as to the expansion of existing climate risk insurance offerings to mitigate the negative consequences of shocks by providing reliable and rapid financial support following extreme weather events.
Blended Finance
Blended finance plays a crucial role in supporting and scaling sustainable CDRFI solutions by addressing financial gaps, reducing risk for private investors, and enabling the broader development of sustainable insurance companies and risk financing offerings in developing and emerging countries.
Core Expertise
Climate Risk Solutions
We promote the development of tailored and innovative financial and insurance concepts and solutions that address the unique requirements of vulnerable populations in developing and emerging countries.
Climate Risk Impact
We empower vulnerable nations to adapt to climate change, by facilitating comprehensive risk analysis, enabling proactive risk management decisions across governments, businesses, and households.
Climate Risk Insurance
We support and contribute to the creation and introduction of new insurance products, as well as to the expansion of existing climate risk insurance offerings to mitigate the negative consequences of shocks by providing reliable and rapid financial support following extreme weather events.
Blended Finance
Blended finance plays a crucial role in supporting and scaling sustainable CDRFI solutions by addressing financial gaps, reducing risk for private investors, and enabling the broader development of sustainable insurance companies and risk financing offerings in developing and emerging countries.
Core Expertise
Climate Risk Solutions
We promote the development of tailored and innovative financial and insurance concepts and solutions that address the unique requirements of vulnerable populations in developing and emerging countries.
Climate Risk Impact
We empower vulnerable nations to adapt to climate change, by facilitating comprehensive risk analysis, enabling proactive risk management decisions across governments, businesses, and households.
Climate Risk Insurance
We support and contribute to the creation and introduction of new insurance products, as well as to the expansion of existing climate risk insurance offerings to mitigate the negative consequences of shocks by providing reliable and rapid financial support following extreme weather events.
Blended Finance
Blended finance plays a crucial role in supporting and scaling sustainable CDRFI solutions by addressing financial gaps, reducing risk for private investors, and enabling the broader development of sustainable insurance companies and risk financing offerings in developing and emerging countries.
CDRFI Programmes
ISF
InsuResilience Solutions Fund
The InsuResilience Solutions Fund promotes the development of innovative and sustainable climate risk insurance products. It represents a pivotal delivery channel of the InsuResilience Global Partnership, a joint initiative of the G20 and V20 to increase the resilience of poor and vulnerable people.
The fund has been established and funded by KfW Development Bank on behalf of the German Ministry for Economic Cooperation and Development (BMZ). Frankfurt School has been commissioned by KfW to manage the Fund and to implement its research and advisory activities.
GRMA
Global Risk Modelling Alliance
The Global Risk Modelling Alliance (GRMA) is supporting countries to enhance their capabilities in analysing current and future climate risks. A unique public good partnership, GRMA leverages the experience and know-how of the private sector as well as academia in risk modelling and risk analysis for the benefit of vulnerable countries.
GSSP
Global Shield-Solutions Platform
The Global Shield-Solutions Platform (GSSP) constitutes a central element of the financing structure of the Global Shield against Climate Risks. It provides technical assistance and financial support to partner countries with the objective of increasing the resilience of vulnerable people of the Global South against climate risks and consequently help to avert, minimise and address losses and damages of climate change.
The GSSP is one of three financing vehicles under the Global Shield. It represents a multi-donor grant facility. Building upon the experience of the InsuResilience Solutions Fund (ISF), the GSSP will pursue a needs-driven, inclusive approach.
CDRFI Programmes
01
InsuResilience Solutions Fund
The InsuResilience Solutions Fund promotes the development of innovative and sustainable climate risk insurance products. It represents a pivotal delivery channel of the InsuResilience Global Partnership, a joint initiative of the G20 and V20 to increase the resilience of poor and vulnerable people.
The fund has been established and funded by KfW Development Bank on behalf of the German Ministry for Economic Cooperation and Development (BMZ). Frankfurt School has been commissioned by KfW to manage the Fund and to implement its research and advisory activities.
02
Global Risk Modelling Alliance
The Global Risk Modelling Alliance (GRMA) is supporting countries to enhance their capabilities in analysing current and future climate risks. A unique public good partnership, GRMA leverages the experience and know-how of the private sector as well as academia in risk modelling and risk analysis for the benefit of vulnerable countries.
03
Global Shield-Solutions Platform
The Global Shield-Solutions Platform (GSSP) constitutes a central element of the financing structure of the Global Shield against Climate Risks. It provides technical assistance and financial support to partner countries with the objective of increasing the resilience of vulnerable people of the Global South against climate risks and consequently help to avert, minimise and address losses and damages of climate change.
The GSSP is one of three financing vehicles under the Global Shield. It represents a multi-donor grant facility. Building upon the experience of the InsuResilience Solutions Fund (ISF), the GSSP will pursue a needs-driven, inclusive approach.
CDRFI Programmes
01
InsuResilience Solutions Fund
The InsuResilience Solutions Fund promotes the development of innovative and sustainable climate risk insurance products. It represents a pivotal delivery channel of the InsuResilience Global Partnership, a joint initiative of the G20 and V20 to increase the resilience of poor and vulnerable people.
The fund has been established and funded by KfW Development Bank on behalf of the German Ministry for Economic Cooperation and Development (BMZ). Frankfurt School has been commissioned by KfW to manage the Fund and to implement its research and advisory activities.
02
Global Risk Modelling Alliance
The Global Risk Modelling Alliance (GRMA) is supporting countries to enhance their capabilities in analysing current and future climate risks. A unique public good partnership, GRMA leverages the experience and know-how of the private sector as well as academia in risk modelling and risk analysis for the benefit of vulnerable countries.
03
Global Shield-Solutions Platform
The Global Shield-Solutions Platform (GSSP) constitutes a central element of the financing structure of the Global Shield against Climate Risks. It provides technical assistance and financial support to partner countries with the objective of increasing the resilience of vulnerable people of the Global South against climate risks and consequently help to avert, minimise and address losses and damages of climate change.
The GSSP is one of three financing vehicles under the Global Shield. It represents a multi-donor grant facility. Building upon the experience of the InsuResilience Solutions Fund (ISF), the GSSP will pursue a needs-driven, inclusive approach.
Project Experience
Analysis of drought risk in Afar and Somali, Ethiopia
The climate risk analysis is based on the Economics of Climate Adaptation (ECA) Methodology, combining risk assessment as well as identification and assessment of adaptation measures and risk transfer solutions. Climate risk analytics are increasingly important to effectively develop adaptation strategies and manage climate risks.
For Ethiopia, however, limited climate risk information is available to inform adaptation decisions. The study is implemented in cooperation with the United Nations University - Institute for Environment and Human Security (UNU-EHS) in the Afar and Somali regions in eastern Ethiopia, which are prone to extreme climate conditions. As the majority of these populations depend on the (agro-) pastoral lifestyle, the regions are highly susceptible to the expected impacts of climate change.
The results of the study support the Ministry of Agriculture in identifying cost-effective climate adaptation measures and developing their adaptation strategy, including risk transfer solutions.
Rapid Response Reef Risk Financing in the Mesoamerican Reef Region
The overall objective is to actively contribute to nature-based approaches as called for at the UN Climate Summit in September 2019. The project supports the conservation of the MAR region (Mexico, Belize, Guatemala and Honduras) by implementing a parametric insurance scheme for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.
Reef insurance is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme to build the long-term resilience of reefs as well as the livelihoods they support and protect along the entire Mesoamerican Reef.
Climate risk insurance to provide emergency liquidity in times of crises in Colombia
The aim of the insurance product is to bridge income losses and immediate liquidity needs after natural disasters for the affected target group.
The current COVID-19 pandemic shows once again the important role insurance plays in the event of loss of income due to business interruption. With the aim of reaching 300,000 beneficiaries by 2022, the project offers a holistic solution that stabilises the income of vulnerable households and thus strengthens their resilience.
Project Experience
Analysis of drought risk in Afar and Somali, Ethiopia
The climate risk analysis is based on the Economics of Climate Adaptation (ECA) Methodology, combining risk assessment as well as identification and assessment of adaptation measures and risk transfer solutions. Climate risk analytics are increasingly important to effectively develop adaptation strategies and manage climate risks.
For Ethiopia, however, limited climate risk information is available to inform adaptation decisions. The study is implemented in cooperation with the United Nations University - Institute for Environment and Human Security (UNU-EHS) in the Afar and Somali regions in eastern Ethiopia, which are prone to extreme climate conditions. As the majority of these populations depend on the (agro-) pastoral lifestyle, the regions are highly susceptible to the expected impacts of climate change.
The results of the study support the Ministry of Agriculture in identifying cost-effective climate adaptation measures and developing their adaptation strategy, including risk transfer solutions.
Rapid Response Reef Risk Financing in the Mesoamerican Reef Region
The overall objective is to actively contribute to nature-based approaches as called for at the UN Climate Summit in September 2019. The project supports the conservation of the MAR region (Mexico, Belize, Guatemala and Honduras) by implementing a parametric insurance scheme for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.
Reef insurance is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme to build the long-term resilience of reefs as well as the livelihoods they support and protect along the entire Mesoamerican Reef.
Climate risk insurance to provide emergency liquidity in times of crises in Colombia
The aim of the insurance product is to bridge income losses and immediate liquidity needs after natural disasters for the affected target group.
The current COVID-19 pandemic shows once again the important role insurance plays in the event of loss of income due to business interruption. With the aim of reaching 300,000 beneficiaries by 2022, the project offers a holistic solution that stabilises the income of vulnerable households and thus strengthens their resilience.
Project Experience
Analysis of drought risk in Afar and Somali, Ethiopia
The climate risk analysis is based on the Economics of Climate Adaptation (ECA) Methodology, combining risk assessment as well as identification and assessment of adaptation measures and risk transfer solutions. Climate risk analytics are increasingly important to effectively develop adaptation strategies and manage climate risks.
For Ethiopia, however, limited climate risk information is available to inform adaptation decisions. The study is implemented in cooperation with the United Nations University - Institute for Environment and Human Security (UNU-EHS) in the Afar and Somali regions in eastern Ethiopia, which are prone to extreme climate conditions. As the majority of these populations depend on the (agro-) pastoral lifestyle, the regions are highly susceptible to the expected impacts of climate change.
The results of the study support the Ministry of Agriculture in identifying cost-effective climate adaptation measures and developing their adaptation strategy, including risk transfer solutions.
Rapid Response Reef Risk Financing in the Mesoamerican Reef Region
The overall objective is to actively contribute to nature-based approaches as called for at the UN Climate Summit in September 2019. The project supports the conservation of the MAR region (Mexico, Belize, Guatemala and Honduras) by implementing a parametric insurance scheme for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.
Reef insurance is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme to build the long-term resilience of reefs as well as the livelihoods they support and protect along the entire Mesoamerican Reef.
Climate risk insurance to provide emergency liquidity in times of crises in Colombia
The aim of the insurance product is to bridge income losses and immediate liquidity needs after natural disasters for the affected target group.
The current COVID-19 pandemic shows once again the important role insurance plays in the event of loss of income due to business interruption. With the aim of reaching 300,000 beneficiaries by 2022, the project offers a holistic solution that stabilises the income of vulnerable households and thus strengthens their resilience.