InsuResilience Solutions Fund — 2nd call for proposals is open!
The InsuResilience Solutions Fund is pleased to announce the opening of its second call for proposals. Concept notes for the development of climate risk insurance products can be submitted until July 12th.
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank launched the InsuResilience Solutions Fund (ISF) in October 2017 to increase the resilience against extreme weather events at the micro, meso and macro level. The ISF supports the development of financially sustainable insurance solutions tailored to meet the needs of households, small and medium-sized enterprises, humanitarian organizations and governments in developing and emerging countries affected by climate change. Thereby, the ISF increases the resilience of poor and vulnerable people to extreme weather events such as floods, wind/storm, excess rain, drought or cold spells.
Therefore, the ISF provides partial grant funding and advice to partnerships between (local) public entities (e.g. national or regional government bodies), private companies in the insurance sector and NGOs to
- transform climate risk insurance concepts into products ready for market placement and
- bring successfully piloted climate risk insurance products to scale.
Grants of up to EUR 2.5m can be provided for development, introduction and scale-up costs (e.g. staff costs, data collection, modelling, legal fees, sales and distribution channel development etc.) for direct and indirect climate insurance products.
The partnerships have to consist of at least
- a user, (e.g. national or regional government bodies, NGOs, local insurer) and
- an implementing partner and potential risk taker, (e.g. reinsurance company).
Further parties, e.g. other product implementing partners such as risk modelling agencies, insurers, brokers, can additionally be involved. By initiating the ISF, KfW is making an important contribution to one of the objectives of the InsuResilience Global Partnership: the identification and development of new climate risk finance and insurance solutions to close the protection gap in the field of climate risk.