Apply for Climate Risk Insurance Products Program 2024

Objectives and Targets

• Contribution to the development and implementation of climate risk insurance coverage for poor and vulnerable beneficiaries in developing and emerging countries, and therefore contributing to the adaption to climate change (by creating resilience) as well as food security and poverty reduction.
  • Targets 1: Capacity building and knowledge transfer on climate risks and climate risk financing instruments
  • Targets 2: Support for developing demand oriented sustainable climate risk insurance solutions in developing countries
  • Targets 3: Crowding in of private capital for the development and implementation of climate risk insurance/financing instruments in developing countries

Focus Areas

• The InsuResilience Solutions Fund seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by:
  • Supporting comprehensive climate risk analysis as the basis for governments, businesses and households to become more proactive in risk management and to make informed decisions on climate risk management and adaptation strategies.
  • Offering studies and advice for the development of new concepts for climate risk insurance solutions that take into account the specific needs of the poor and vulnerable populations and
  • Co-funding the development and market introduction of insurance products, as well as supporting the expansion of existing innovative climate risk insurance products.

Pillars

• To promote the development of innovative and financially sustainable climate risk insurance products in developing and emerging countries, the ISF provides financial and technical assistance following a three-pillar approach:
  • Pillar 1: Comprehensive climate risk analysis for selected geographic areas (municipalities, agglomerations or regions);
  • Pillar 2: Funding to support (pre-)feasibility studies as well as targeted expert advisory and consultancy support required to address existing deficiencies
  • Pillar 3: Grant-based co-funding for the development and market introduction of climate risk insurance products.

Funding Information

• The ISF is offering financial support (of up to EUR 15,000)

Target Countries and Groups

• Focus on vulnerable households living on less than 15 USD PPP per capita per day either directly (through micro-level insurance) or indirectly (through meso- or macro-level solutions).
• Countries in Asia and the Pacific, Europe, 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.

Eligibility Criteria

• You apply as Consortium with at least:
  • Two Project Partners willing and legally entitled to sign the potential Grant Agreement,
  • One Project Partner located and legally registered in the country of implementation and willing and legally entitled to sign the potential Grant Agreement,
  • One Project Partner representing the demand and needs of vulnerable households, and
  • One Project Partner generally willing to act as risk taker.
  • You want to develop, improve and/or scale up an insurance product in order to increase the resilience of vulnerable people to climate change.
  • Your insurance product directly covers at least: flood, wind/storm, excess rain, drought / heat waves, cold spells (possibly in combination with other non-climatic perils). Examples: Nat Cat, business interruption, property or agricultural insurance
  • In case of an agri insurance product, please note that at least two out of the three FAO criteria have to be fulfilled, while maintaining or promoting biodiversity.
  • Your insurance product benefits vulnerable households with less than USD 15 PPP per capita per day (either directly or indirectly).
  • Your product/project will be implemented in a country eligible to receive official development assistance (ODA).
  • Your funding request does not exceed EUR 2.5m. The grant-based co-funding of up to EUR 2.5m does not include your own contribution.
  • Your ISF project timeline will not exceed 24 months for micro and meso level approaches; 36 months for macro level approaches.

Ineligibility Criteria

• 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
• Measures without direct linkage to the establishment, surveillance, monitoring or sustainability of the insurance product
• Financially-unstable and unexperienced product partners
• Projects with a questionable demand
• Measures with a direct ecological or socio-economic impact, e.g. purchase of fertilisers, planting of trees, implementation of livelihood activities, general agricultural extension services.

For more information, visit InsuResilience Solutions Fund.