Open Society Foundations invests USD 10 million into BlueOrchard-managed InsuResilience Investment Fund
Zurich, 20 May 2020 – Open Society’s impact investing arm, the Soros Economic Development Fund (SEDF), has committed USD 10 million to the InsuResilience Investment Fund (IIF), an initiative set up by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by BlueOrchard.
The fund aims to drive adaptation to climate change by improving access to and the use of insurance in developing countries, with a focus on reducing the vulnerability of poor and vulnerable households as well as micro, small and medium enterprises to extreme weather events. It invests in insurance and technology companies that help to mitigate climate-related risks, providing financing to qualified investees that offer insurance solutions for weather events and natural catastrophes.
The economic and financial losses caused by natural disasters have increased substantially over the last decades. It is expected that the frequency and severity of weather-related events will further increase due to climate change. Climate insurance reduces the vulnerabilities of individuals with low-income to climate threats by providing insurance as a risk management instrument.
IIF, which launched in 2017, is part of the G20 InsuResilience Global Partnership and contributes to a number of the UN’s Sustainable Development Goals; with the aim of protecting more than 100 million poor and vulnerable people around the world.
Philipp Müller, Chief Executive Officer at BlueOrchard, said: “Driving inclusive and climate-smart growth is part of our core mission at BlueOrchard. We are proud of the work that the InsuResilience Investment Fund has done over the last few years to support smallholder farmers in emerging and frontier markets in adapting to the effects of climate change. This investment from the Open Society Foundations will help us to continue to expand our investment in the insurance and technology providers who make this possible, and bring us closer to achieving our goal of reaching 100 million low-income households.”
Catherine Cax, SEDF’s Director of Investments said: “The InsuResilience Investment Fund is the only entirely private sector initiative within this broader effort to expand affordable insurance to those who are most at risk from the threat of climate change. We hope to contribute to a success story that will serve as a catalyst to bring other private sector investment into this critical area. While initiated before COVID-19, this investment speaks to the moment by supporting vulnerable communities that are already disproportionally at risk.”
About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and a member of the Schroders group. The firm is dedicated to fostering inclusive and climate-smart growth in emerging and frontier markets, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. The firm has built a distinct track record in offering premium impact investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. BlueOrchard has invested to date more than USD 6bn for sophisticated global private and public clients, enabling tangible social and environmental impact. For additional information, please visit: www.blueorchard.com.
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