Insuresilience Solutions Fund
About the fund

Support of the development of climate risk insurance products

Natural disasters are a major impediment to development in many countries, setting back poverty alleviation and leading to loss of lives and livelihoods. Due to climate change extreme weather events such as floods, storms and draughts are forecasted to increase by frequency and intensity. Aid often comes too little, too late – around one to six months after the disaster has struck - increasing the impacts of natural disasters by twofold or more.

As an essential element of comprehensive risk management climate risk insurance can mitigate the negative consequences of extreme weather events and can lead to faster, more cost-effective and more reliable response. The African Risk Capacity (ARC) has shown the immense potential of insurance solutions to improve emergency response capacity of governments.

However, the access to climate risk insurances is still limited and more sustainable, demand-side driven solutions are necessary to close the protection gap.

Mandated by the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW has set up a new facility to support the development of innovative climate risk insurance products and insurance markets in developing countries - the InsuResilience Solutions Fund.

The objective of the InsuResilience Solutions Fund is to provide partial grant-funding and expertise for the development of (new) climate risk insurance products for governments, humanitarian organisations, small and medium-sized businesses as well as for private households in developing and emerging countries.

The InsuResilience Solutions Fund is an important contribution of KfW to achieve the target of the international initiative on climate risk insurance ’InsuResilience’. The initiative aims to offer insurance against climate risks to an additional 400 million poor and vulnerable people in developing countries by 2020.


  • Support of the development of adequate, financially sustainable climate risk insurance products in developing and emerging countries to reduce their vulnerability against extreme weather events/ natural catastrophes.


  • The ISF will provide partial grant funding and advice for the development of indirect and direct climate risk insurance products, in order to bring climate risk insurance solutions from concept to implementation stage ready for market placement and to scale up already piloted projects.
  • Furthermore, the ISF will support joint initiatives of (local) public entities (e.g. national or regional government bodies), private companies in the insurance sector and NGOs to both leverage the expertise of the private sector and to ensure the demand and sustainability of the developed climate risk insurance products.
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The approach of the ISF is unique

It catalyses the formation of partnerships between

  • public entities (e.g. national or regional government bodies),
  • NGOs, humanitarian organisations and
  • companies in the insurance sector

to ensure the demand and sustainability of the products and to leverage insurance sector expertise as well as risk taking capacities.

Focus areas and terms of funding

ISF has three focus areas:
  1. Development of new climate risk insurance products, especially for governments.
  2. Scale-up of already existing, piloted products, e.g. into other regions or to other groups.
  3. Investment in technological solutions to improve and scale-up insurance operations, e.g. through applying satellite technology or drones.

ISF provides grants up to 2.5m EUR under the condition that the partnership commits a meaningful own contribution of 50% of the requested funding1 in kind and/or as financial contribution.

1 Lower rates may apply if state organizations/ public entities or none profit organizations provide the most part of the contribution.