Since May 2018, the InsuResilience Solutions Fund (ISF) has started its operational activities accepting Expression of Interests.
ISF has three focus areas:
- Development of new climate risk insurance products, especially for governments.
- Scale-up of already existing, piloted products, e.g. into other regions or to other groups.
- Investment in technological solutions to improve and scale-up insurance operations, e.g. through applying satellite technology or drones.
Target Markets and Groups
- Poor and vulnerable households (< 15 USD PPP per day).
- Countries which are eligible to receive official development assistance (ODA) as defined by the OECD/DAC and are vulnerable to extreme weather events.
Terms of funding
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.
The ISF will only provide financing to partnerships which consist of at least
- a user, representing the demand-side (e.g. national or regional government bodies, NGOs, local insurers) and
- an implementing partner and potential risk taker, representing the supply-side (e.g. reinsurance company).
Further parties, e.g. other product implementing partners such as risk modelling agencies, insurers, brokers, can additionally be involved.
- Download ISF Concept Idea Template: Concept Idea Template InsuResilience Solutions Fund
Core eligibility criteria:
- Perils: floods, wind / storm, excess rain / drought, heat waves / cold spells (possibly in combination with other natural hazards).
- Focus on poor and vulnerable households (< USD 15 PPP per day) either directly (through micro-level solutions) or indirectly (through meso- or macro-level solutions).
- The product is ready for market placement and launch within 36 months after funding approval.
- A risk-taking partner who is generally willing to underwrite the risk covered by the developed product is part of the partnership.
- A business plan exists for the development phase containing reliable cost estimations and a time and working plan.
- The partnership provides an own contribution of 50% of the total development costs in the form of a financial contribution, staff or other quantifiable inputs
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 subsidization
- Financially-unstable and unexperienced product partners
- Projects with a questionable demand
Examples for eligible development costs 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
1) Lower rates may apply if state organizations/ public entities or none profit organizations provide the most part of the contribution.