Terms of funding

The ISF provides grant-based co-funding of up to EUR 2.5m only to consortia of Project Partners consisting of public and/ or private organisations

1) 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

2) 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 and legally authorised to sign a potential Grant Agreement

3) 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)

Further parties, e.g. other product implementing partners such as risk modelling agencies, insurers, brokers, can additionally be involved.

In case of applying, please bear in mind that the grant-based co-funding of up to EUR 2.5m does not include your own contribution.
Hence, the formula is as follows: ISF grant + own contribution = total project costs.

Additional Criteria

• 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.).

Examples for cost items eligible for funding

• Development of new risk / hazard models
• Technical product design incl. actuarial risk characteristics
• Data collection and equipment
• Policy terms and pricing
• Legal costs, e.g. for the identification of a suitable implementation structure
• Sales and distribution channel development
• New technologies for product improvement and scale up