Within the framework of the InsuResilience Global Partnership, the global partnership for Climate and Disaster Risk Finance and Insurance Solutions, policy recommendations for insurance markets in developing countries are being developed, in order to scale-up the use of climate risk insurance solutions. With the Vision 2025 the Partnership set the ambitious goal to provide coverage against losses induced by extreme weather events for an additional 500 million people in developing countries until 2025.
The InsuResilience Solutions Fund (ISF) represents a pivotal delivery channel of the InsuResilience Global Partnership. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank established and funded the ISF, to increase the resilience against the impacts of climate change and natural disasters at the micro, meso and macro level. The ISF promotes the development of innovative and sustainable climate risk insurance solutions tailored to meet the needs of households, small and medium-sized enterprises, humanitarian organizations and governments in developing and emerging countries affected by climate change. Thereby, the ISF increases the resilience of poor and vulnerable people to extreme weather events such as floods, wind/storm, excess rain, drought or cold spells.
Since its establishment in 2019, the ISF has already launched four Calls for Proposals that generated worldwide interest from the private and public sector as well as civil society. To date, the Fund has received over 120 applications for co-financing product development of innovative climate risk insurance solutions. So far, already six Grant Agreements for product development support have been signed, spanning from Latin America to South-East Asia.
The extension of the cooperation agreement between KfW and Frankfurt School of Finance & Management and the signing of the contract for the second phase, will allow the ISF to continue its funding and research activities. With its strong focus on partnerships, the concept of the ISF addresses the actual needs and support required in order to better protect those affected by climate and natural disasters.