Insuresilience Solutions Fund

News & Events

Understanding Climate Risks - What does it mean for San Salvador?

Publication

A new publication by the InsuResilience Solutions Fund (ISF) in cooperation with the Insurance Development Forum (IDF) and the Swiss Federal Institute of Technology (ETH Zurich) illustrates the importance of climate risk analysis as essential instrument of comprehensive climate risk management on the basis of results of a San Salvador case study. Including insurance in climate risk analyses shows the relevance of insurance and the incentives insurance can set for complementary adaptation measures. For the case study of San Salvador, answers to the most urgent questions policy-makers are facing with regard to climate risks are being provided, in order to define a comprehensive climate risk management approach.
understanding-climate-risks-pdf

The need for climate adaptation and risk management is most pressing in low-income countries. Climate risk modelling and analysis can provide decision-makers with the information they need to turn policies into action.
A joint side event with UNU-EHS, IDF and ETH Zurich presenting this topic in more detail will be hosted at the EU Pavilion (11 December 2019, 10:30-12:00) of the COP25 in Madrid, entitled “Decision for Action – Perspectives on implementing evidence-based climate finance”.

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Kick-off workshop of climate risk analysis in Honduras

San Pedro Sula, Honduras

On November 13 and 14 the kick-off workshop of a comprehensive climate risk analysis took place in San Pedro Sula, Honduras. San Pedro Sula is the second largest city in Honduras and the industrial center of the country. Extreme weather events and natural catastrophes have a great impact on its businesses and livelihoods of the city´s population. Especially vulnerable neighbourhoods suffer from large flooding caused by heavy rainfall and hurricanes, expected to become more frequent and intense due to climate change.

The workshop was organised and implemented by the InsuResilience Solutions Fund in cooperation with the United Nations University's Institute for Environment and Human Security (UNU-EHS) with the aim to familiarise all relevant stakeholders with the methodology applied, to understand their specific needs, and to define the final scope for the study. The mayor of San Pedro Sula inaugurated the workshop which was attended by over 60 representatives from the municipality, private sector, academia, community leaders and civil society organisations.
The climate risk analysis is based on the Economics of Climate Adaptation (ECA) Methodology, combining risk assessment as well as identification and assessment of adaptation measures and risk transfer solutions. The study's results allow policy makers to make an informed decision in prioritising cost-effective adaptation measures.
Applying risk analysis tools and models developed by the insurance sector, the ISF in cooperation with the UNU-EHS offers comprehensive climate risk analysis as an essential element of climate risk management to partners in developing and emerging economies.

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ISF presents at 15th International Conference on Inclusive Insurance

Dhaka, Bangladesh

In the course of the 15th International Conference on Inclusive Insurance for Emerging Markets hosted by Munich Re Foundation in cooperation with BIA and MIN, the ISF presented its activites and application process to experts from the private and public sectors.

The 15th International Conference on Inclusive Insurance for Emerging Markets was held in Dhaka, Bangladesh from 5 to 7 November 2019. Hosted by Munich Re Foundation and in cooperation with the Bangladesh Insurance Association (BIA) and the Microinsurance Network (MIN), the conference featured panel discussions on key topics, working groups and interactive sessions addressing more than 400 participating experts from private and public sectors around the world with varying topics on developing insurance markets, the role of stakeholders, societal capacity building, the role of technolgy and more. For more information on the conference agenda, visit the IMC website.
Being awarded the opportunity to use this platform to gain visibility, the ISF hosted a side event at the conference venue presenting its mandate and structure as well as ongoing acivities, and providing detailed information on the different steps of the application process for a Call for Proposals. The side event was received with great interest emphasising the significant potential of such events to reach future partners. In addition, the conference provided the setting to further nurture established cooperations with partnerships in different emerging markets.
The 16th International Conference on Inclusive Insurance for Emerging Markets will take place in November 2020 in Jamaica.

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Beneficiaries of Rapid Response Reef Risk Financing in the MAR Region

REPORT

Insurance for reefs is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme of work to build long-term resilience of reefs and the livelihoods they support and protect along the entire Mesoamerican Reef. In preparation for the development of a reef insurance product in the Mesoamerican Reef (MAR) Region, the ISF funded two preparatory studies by WTW and MAR Fund.

The InsuResilience Solutions Fund (ISF) supports the development of innovative climate risk insurance solutions by funding preparatory studies necessary for the development of the insurance concept as well as for assessing the feasibility of the envisaged solution.
In preparation for the development of a reef insurance product in the Mesoamerican Reef (MAR) Region, the ISF funded two preparatory studies. The studies have been prepared accordingly by Willis Towers Watson and MAR Fund.
Insurance for reefs is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme of work to build long-term resilience of reefs and the livelihoods they support and protect along the entire Mesoamerican Reef.
The overall objective of the project is to contribute to the conservation of the MAR region (Mexico, Belize, Guatemala, Honduras) by implementing a parametric insurance model for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.
Socioeconomic analysis and identification of the indirect beneficiaries of insurance program in the Mesoamerican Reef (MAR) region.
mar-reef-risk-financing_beneficiaries-study

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Sustainability of Rapid Response Reef Risk Financing in the MAR Region

REPORT

In preparation for the development of a reef insurance product in the Mesoamerican Reef (MAR) Region, the ISF funded two preparatory studies by WTW and MAR Fund. The overall objective of the project is to contribute to the conservation of the MAR region (Mexico, Belize, Guatemala, Honduras) by implementing a parametric insurance model for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.

The InsuResilience Solutions Fund (ISF) supports the development of innovative climate risk insurance solutions by funding preparatory studies necessary for the development of the insurance concept as well as for assessing the feasibility of the envisaged solution.
In preparation for the development of a reef insurance product in the Mesoamerican Reef (MAR) Region, the ISF funded two preparatory studies. The studies have been prepared accordingly by Willis Towers Watson and MAR Fund.
Insurance for reefs is an innovative financial mechanism that can contribute to reef restoration and recovery. The insurance element is part of a larger programme of work to build long-term resilience of reefs and the livelihoods they support and protect along the entire Mesoamerican Reef.
The overall objective of the project is to contribute to the conservation of the MAR region (Mexico, Belize, Guatemala, Honduras) by implementing a parametric insurance model for reefs to deliver quick financing for rapid response and reef restoration actions, after damages caused by hurricanes.

Preparation study of the associated sustainability for the implementation of a parametric insurance instrument for reefs in the Mesoamerican Reef (MAR) Region
mar-reef-risk-financing_sustainability-study

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ISF and Frankfurt School support the development of drought insurance for smallholder farmers in South Africa

Frankfurt am Main / South Africa

To improve access to agricultural insurance for smallholder farmers, the InsuResilience Solutions Fund (ISF) represented by its management, the Frankfurt School of Finance and Management, South African Land Bank Insurance Company and Celsius Pro have signed a grant funding agreement. This grant - the first provided by ISF since its commencement of operation in 2019 - will serve to co-fund the development and market introduction of an innovative index-based insurance for crop and livestock for smallholder farmers in South Africa...

In 2015 and early 2016, a severe drought drastically reduced water supplies and agricultural production in South Africa. Maize and other crops did not grow, livestock was threatened to starve. Especially smallholder farmers and their families were heavily impacted not only by losing their income but also risking going hungry. Economic loss from the drought was estimated close to half a billion USD.

Although insurance could effectively reduce the vulnerability of smallholder farmers towards extreme weather events like drought, as of today less than one percent have access to agricultural insurance - thus leaving an estimated 1.7 million smallholder and subsistence farmers in South Africa uninsured against weather related risks. Although the Department of Agriculture has a disaster relief programme, its ex-post financing has proven not to be timely and has led to a significant number of these farmers being left destitute due to delays associated with the current programme in place. Hence, Adam Maniki Rakgalakane, Managing Director of Land Bank Insurance Company, emphasises the relevance of the innovative insurance product: “With the support of the InsuResilience Solution Fund we will develop a drought insurance solution for smallholder farmers, which will allow faster pay-outs and relief in case of a drought.
To improve access to agricultural insurance for smallholder farmers, the InsuResilience Solutions Fund (ISF) represented by its management, the Frankfurt School of Finance and Management, South African Land Bank Insurance Company and Celsius Pro have signed a grant funding agreement. This grant - the first provided by ISF since its commencement of operation in 2019 - will serve to co-fund the development and market introduction of an innovative index-based insurance for crop and livestock for smallholder farmers in South Africa, intending to provide insurance cover to some 240,000 people by 2021. As a government-owned institution, Land Bank and its subsidiary Land Bank Insurance Company are mandated by the government to facilitate access of poor and vulnerable population to financial services. In order to offer insurance protection to the unserved Land Bank Insurance Company is partnering with CelsiusPro, a highly experienced Swiss Insurtech company specialised in inclusive climate and natural catastrophe insurance. Mark Rueegg, CEO of CelsiusPro: “We are proud to provide, an automated insurance administration platform enabling quick payouts, reducing costs and making insurance affordable for smallholder farmers. It is our aim to include poor and vulnerable people into the financial system.”

Dr. Annette Detken, Head of InsuResilience Solutions Fund, points out: ”The project shows the way to concrete and scalable solutions improving resilience and adaptation to climate impacts.” This innovative climate risk insurance thus represents an illustrative example for the Resilience and Adaptation action track of the UN Climate Action Summit to be convened by UN Secretary-General António Guterres on September 23 in New York.

The ISF has been set up and is funded by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). It is a pivotal delivery channel of the InsuResilience Global Partnership, a joint initiative of the G20 and V20 to reduce vulnerability of poor and vulnerable. The ISF supports innovative climate risk insurance solutions to mitigate the negative impacts of climate change. It offers co-funding and advisory for the implementation of new climate risk insurance concepts into marketable products and the expansion of existing, sustainable climate risk insurance products. Under the condition that the applicants commit a meaningful own contribution of 50 per cent of the requested funding, ISF provides grants of up to 2.5 million euros.

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Bringing Climate Risk Insurance forward – the 2nd InsuResilience Global Partnership Forum at the COP24

Katowice, Poland

On December 10th, KfW participated at the 2nd InsuResilience Global Partnership Forum “Paving the way to effective risk financing solutions”. The Forum is the annual meeting of the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions (IGP).

This year´s Forum took place at the margins of the UN Climate Conference (COP 24) in Katowice. The partnership counts more than 60 members, which convene annually to exchange experiences, share knowledge and raise awareness about disaster risk finance and insurance. In five different sessions, approaches to promote climate and disaster risk finance and insurance solutions in Pakistan, Colombia, Sri Lanka, Zambia and West Africa were discussed, including climate risk insurance concepts linked to KfW.
Both, the Sri Lanka and the Colombia session, debated insurance concepts which seek financial support from KfW’s InsuResilience Solutions Fund (ISF).
As the ISF is continuously evolving, we thank all the participants for fruitful and lively discussions.

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COP24 - United Nations Climate Change Conference

Katowice, Poland

The 24th conference of the parties to the United Nations Framework Convention on Climate Change will take place in Katowice, Poland.

With the 24th conference of the parties to the United Nations Framework Convention on Climate Change (COP24) only days ahead, we are pleased to announce that the ISF will be part of this event. Within two breakout sessions of the InsuResilience Global Partnership Forum, concepts will be presented seeking co-financing from the ISF. Furthermore, the advantage of building public-private-partnerships to help the poor and vulnerable to better manage increasing climate risks will be explored.

For further information on COP24, visit the website.
For further information on the Global Partnership Forum, follow this link.

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ISF at the annual IIS Global Insurance Forum on the 11th of July 2018

Berlin, Germany

Please take not of a joint event on INSURANCE FOR DEVELOPMENT AND RESILIENCE in cooperation with the International Insurance Sociatey (IIS), the Insurance Development Forum (IDF) and the InsuResilience Global Partnership during the annual IIS Global Insurance Forum the 11th of July 2018 which will be devoted to insurance and development themes involving public, private, NGO and academic communities from developed and developing countries. A key objective is to showcase early success and illustrate how visionary cooperation across sectoral, international, regional and national schemes will pave the way towards a resilient future.

The InsuResilience Secretariat is delighted to invite you to the Global Insurance Forum, hosted by the IIS and The Institutes, with a full day dedicated to Insurance for Global Development & Resilience in collaboration with InsuResilience Global Partnership and the Insurance Development Forum (IDF).

The third day of the annual IIS Global Insurance Forum, Wednesday 11 July, will be devoted to the role and potential of climate and disaster risk finance and insurance to build resilience in developed and developing countries as a contribution to economic and social prosperity, including sessions focusing on climate risk resilience for the poor and most vulnerable. An agenda can be viewed here

The open session will feature keynote addresses from Joaquim Levy, Managing Director and World Bank Group Chief Financial Officer and Denis Duverne, Chairman of the Board of Directors of AXA alongside senior global leaders in a series of high-level panel discussions, and practical working sessions. The day will present an array of innovative risk finance and insurance solutions on how visionary cooperation across sectoral, international, regional and national schemes will pave the way towards a resilient future.

www.insuresilience.org/

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Launch Event of the InsuResilience Solutions Fund

Berlin, Germany


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 fund will support the development of new climate risk insurance products for governments, humanitarian organizations, small and medium sized enterprises as well as private households by providing partial grant-funding and expertise for product development.

The InsuResilience Solutions Fund is an important contribution of KfW to achieve the target of the international initiative on climate risk insurance ’InsuResilience’ aiming at increasing the number of the most vulnerable developing countries who have access to climate risk insurance coverage by up to 400 million between 2015 and 2020.

High level representatives from our partner countries, Global Parametrics, Save the Children, Vision Fund International and Welthungerhilfe will discuss how to further develop climate risk insurance products most suitable to support the poor and vulnerable.

www.insuresilience-solutions-fund.org

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Annual Meetings of the World Bank and the International Monetary Fund

Washington DC, US

The Annual Meetings of the Boards of Governors of the World Bank Group (WBG) and the International Monetary Fund (IMF) bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial system. This year's events will take place in Washington, DC, October 9-15, 2017.

www.imf.org/external/am/2017/index.htm

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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.

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