InsuResilience Solutions Fund (ISF) is pleased to launch the 5th call for proposals for the Innovative Climate Risk Insurance.
The ISF especially welcomes project concepts targeting the sectors most vulnerable to effects of the pandemic, such as critical infrastructure, emergency relief and financial support of (M)SMEs, with products focusing on providing coverage against climate change related perils such as flood, wind/storm, excess rain, drought/heat wave, cold spells (in combination with others).
The InsuResilience Solutions Fund seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by:
- Supporting comprehensive climate risk analysis as the basis for governments, businesses and households to become more proactive in risk management and to make informed decisions on climate risk management and adaptation strategies.
- Offering studies and advice for the development of new concepts for climate risk insurance solutions that take into account the specific needs of the poor and vulnerable populations and
- Co-funding the development and market introduction of insurance products, as well as supporting the expansion of existing innovative climate risk insurance products.
Terms of Funding
The ISF provides grant-based co-funding of up to 2.5m EUR only to Partnerships consisting of public and/ or private organisations
- which want to
- develop new climate risk insurance products, especially for governments or
- scale-up already existing products, e.g. into other regions or to other groups in order to increase the resilience of poor and vulnerable people in developing countries to climate change
- where at least one partner is
- representing the demand and needs of end-beneficiaries (e.g. national or regional government bodies, NGOs, local insurers)
- willing to act as a risk taker (e.g. reinsurance company)
- located in the target country
- which provide an own contribution
- matching the grant funding (in-kind and/or as financial contribution, including funds from their own resources and co-financing2)
Target Countries and Groups
- Focus on poor and vulnerable households (< 15 USD PPP per day) either directly (through micro-level insurance) or indirectly (through meso- or macro-level solutions).
- Countries in Asia and the Pacific, Africa and Latin America which are eligible to receive official development assistance (ODA) as defined by the OECD Development Assistance Committee and are vulnerable to extreme weather events.
- Nevertheless, countries that are official candidates for accession to the European Union or beneficiaries of the European Neighbourhood Instrument East are considered to be non-eligible for ISF funding. These include: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, Turkey and Ukraine.
- Target group of the ISF are joint initiatives of:
- (local) public entities (e.g. national and regional government bodies or communities),
- private companies in the insurance sector, and
- NGOs, humanitarian organisations.
- The insurance product covers at least one of the following perils: flood, wind / storm, excess rain, drought/ heat waves, cold spells (a combination with other perils is possible). Examples: Nat Cat, business interruption, property or agricultural insurance
- The project has a lifespan of up to 24 months / the product is ready for market placement and launch within 24 months after funding approval.
- A work, budget and time plan containing reliable cost estimations exist.
- Relevant experience of implementing partners, reference project exist.
- Funding is requested for product development related costs (e.g. data collection, IT, risk modelling, etc.).
For more information, visit https://www.insuresilience.org/blog/2021/02/17/innovative-climate-risk-insurance-wanted-5th-call-for-proposals-of-the-isf-is-open-now/