Insuresilience Solutions Fund
Call for Proposals

Submit your Concept Note and apply for funding now!

The 6th Call for Proposals is open now!
You are planning to develop a climate risk insurance project and look for financial support?
Apply for ISF co-funding of product development costs and submit your Concept Note until Friday, 17 December 2021, 23:59 CET to info@insuresilience-solutions-fund.org.

ISF window for agricultural insurance projects under 6th CfP

Climate risk insurance is an important instrument complementing risk reducing adaptation measures to mitigate the impacts of extreme weather events on agricultural production and food safety.

With the 6th Call for Proposals the ISF wants to highlight the importance to adopt climate smart agricultural practices (CSA) and thus foster the much needed transformation of the agricultural sector in our partner countries.

In order to strengthen this important link and emphasise potential co-benefits of agricultural insurance on the adoption of CSA practices, ISF invites project partners to submit innovative proposals for climate risk insurance products complementing climate smart agricultural practices under a separate window established specifically for its 6th Call for Proposals (CSA window).

Proposals in the area of agricultural insurance need to fulfill the following additional criteria:
Agricultural insurance solutions proposed under the 6th CfP should identify and leverage linkages to CSA by

  1. complementing other agricultural risk reduction policies and measures planned or being already in implementation (e.g. sustainable water management practices, organic production, use and promotion of drought resilient crops, etc.)

AND

  1. creating co-benefits and outputs in support of sustainable agricultural practices (e.g. offering access to extension services on climate-smart / sustainable agricultural practices, early warning or weather information systems, etc).

AND / OR

  1. incentivising transformational change in the agricultural sector (e.g. insurance solutions incentivising risk diversification and transformational change by supporting access to loans for adaptation investments, access to training or know-how transfer on product diversification and/or sustainable land management, etc.).

PLEASE NOTE:
General ISF funding criteria remain valid also for this specific CSA window (see: items eligible for grant-based funding under Pillar III). Therefore only costs directly or indirectly linked to the development of the specific climate risk insurance product may be co-funded by ISF.

All documents relevant for the application process and further guiding documents are published here.

For any questions, please do not hesitate to contact us via info@insuresilience-solutions-fund.org.

Terms of funding

The ISF provides grant-based co-funding of up to EUR 2.5m only to Partnerships 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.

Learn more

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.

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.).

If you require more information on the criteria to receive financial support by ISF, please refer to the Funding Criteria.

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

What ISF does not fund

  • Early stage development projects e.g. research ideas
  • Projects without a focus on the above-mentioned target group
  • Likely unsustainable projects, e.g. relying on long-term subsidisation
  • Financially-unstable and unexperienced product partners
  • Projects with a questionable demand

If you require more information on cost items eiligible for grant-based funding, please refer to the Eligible & Ineligible Measures.

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1) Lower rates may apply if state organisations/ public entities or none profit organisations provide the most part of the contribution.
2) Co-financing can be sourced from other public donors, but may not include any resources from funders of the InsuResilience Solutions Fund.

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