InsuResilience Investment Fund (IIF) launches new report on climate insurance in developing countries

10/12/2020 News, News Releases

Luxembourg, 10 December 2020 – The IIF report presents the results of the Fund’s first six years of operation. To date, the Fund has helped to protect 25 million poor and climate vulnerable people from the effects of climate change.

Since 2015, the InsuResilience Investment Fund (IIF) has worked to build the climate resilience of poor and climate-vulnerable households as well as micro, small and medium enterprises, by increasing climate insurance coverage. It has today launched a new report “Protecting low-income communities through climate insurance”, which takes stock of its experience and achievements over its first six years of operation. As the first fund of its kind to raise private capital to invest in climate insurance markets in developing countries, the fund shares in this report valuable lessons for impact investors, insurers, policy makers and other relevant entities involved in building resilience using insurance and disaster risk finance.

IIF is the only initiative on climate risk insurance investing private capital in private sector companies to increase commercial insurance offerings under the G20 InsuResilience Global Partnership. The Partnership aims to protect more than 500 million additional poor and vulnerable people in developing countries against the impacts of climate change. IIF, managed by BlueOrchard, was initiated by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The report shows how IIF uses a blended finance approach to raise public and private capital to invest in innovative companies helping them to launch new or grow existing climate insurance schemes. The Fund’s balanced approach to investing emphasises both climate resilience impact as well as financial returns for investors. It has to date helped protecting 25 million poor or climate vulnerable people in developing countries from the effects of climate change. By 2025, IIF expects to reach between 90 and 145 million beneficiaries.

Authored by independent climate risk advisory firm Acclimatise, the report was based on an analysis of reporting data, interviews and survey responses from IIF’s investee companies conducted by Climate Finance Advisors. IIF’s investees described how the Fund’s capital investments and other support delivered through its Technical Assistance and Premium Support Facilities, help them to overcome some of the major challenges to insurance market penetration in their countries of operation.

To access the report, please click here.

Stefan W. Hirche, Principal Portfolio Manager at KfW, said: “The IIF has successfully established a unique structure through which today 25 million people in 25 different countries benefit from the protection offered by climate insurance. We are proud of the Fund’s ’contribution to the G20 InsuResilience Global Partnership, and looking forward to scaling its impact significantly until 2025.”

Maria Teresa Zappia, BlueOrchard’s Chief Impact and Blended Finance Officer & Deputy CEO, said: “IIF is a prime example of a successful blended finance fund. We are very proud to have successfully brought together renowned public and private investors to support poor and vulnerable people in developing countries from the effects of climate change. The fund’s innovative investment strategy and market building objectives represent a unique way to leverage public funds with commercial capital and scale up IIF’s impact and outreach while still striving for financial returns.”

Lea Mueller, Head of Consulting at CelsiusPro, said: “IIF creates lasting change by supporting its investees to develop and grow their climate insurance products. The IIF’s Technical Assistance Facility has completed 25 projects providing guidance in crucial areas such as insurance product design, distribution, awareness raising and marketing.”

– ends –

About InsuResilience Investment Fund

Luxembourg-based InsuResilience Investment Fund has been set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of the InsuResilience Investment Fund is to contribute to the adaptation to climate change by improving access to and the use of insurance in developing countries. The specific objective of the fund is to reduce the vulnerability of low-income households and micro, small and medium enterprises (MSME) to extreme weather events. The InsuResilience Investment Fund has been set up as a public-private-partnership for qualified investors and combines private debt and equity investments in two separately investible sub-funds as well as technical assistance and premium support. The fund aims at both financial return and social impact. For further information, please visit: www.insuresilienceinvestment.fund  

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 7bn for sophisticated global private and public clients, enabling tangible social and environmental impact. For additional information, please visit: www.blueorchard.com

About CelsiusPro

CelsiusPro is a Swiss InsurTech company specialized in providing technology to structure, execute and administer parametric insurance solutions mitigating the financial impact of adverse weather, climate change, and natural catastrophes for over a decade. CelsiusPro’s White Label Platform is highly scalable across various geographical regions, perils, products, insurers, and re-insurers. Their systematic but flexible approach covers tropical cyclones, earthquakes, agricultural yield, and weather products globally. CelsiusPro’s consulting services include feasibility studies, product design, insurance scheme design, individual risk assessments, process digitalization, and education services. CelsiusPro manages the Technical Assistance Facility of the InsuResilience Investment Fund to protect local communities and small businesses from extreme weather and climate change. For further information, please visit: www.celsiuspro.com

About Acclimatise

Acclimatise is a specialist advisory and analytics company that provides world-class expertise in climate change adaptation and resilience. With experience in more than 90 countries, our work plays an important role in shaping the international adaptation agenda. Since November 2020 Acclimatise is wholly owned by leading global advisory, broking and solutions company Willis Towers Watson. The Acclimatise team is now part of Willis Towers Watson’s Climate and Resilience Hub (CRH). The CRH is a market leading centre of climate adaptation expertise, supported by the Willis Research Network, a network of more than 60 organizations in science, academia, think tanks and the private sector working to improve the understanding and quantification of risk, with the aim to improve the resilience of our clients and society as a whole. For further information, please visit: www.acclimatise.uk.com

About Climate Finance Advisors

Established in 2015 in Washington, DC as a mission-driven Benefit LLC, Climate Finance Advisors (CFA) is a women-owned consulting and advisory firm. Its work is at the nexus of private investment and climate change. CFA specializes in helping its clients develop climate finance strategies, appraise and structure climate-aligned investments, channel public and private capital to sustainable investment, and integrate climate considerations into investment decisions, financial products and services, and policies. The CFA team is comprised of finance, international development, and policy practitioners with over 125 years of collective banking, private equity, climate, and infrastructure finance expertise across a range of geographies, sectors, and sustainability domains in the public and private sectors. For further information, please visit: www.climatefinanceadvisors.com

For further information, please contact:

Tahmina Theis
+41 22 596 47 69
tahmina.theis@blueorchard.com
www.blueorchard.com

 

Disclaimer:

The information in this publication was produced by the InsuResilience Investment Fund (“IIF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this publication are those of IIF and are subject to change at any time without notice. IIF provides no guarantee with regard to the accuracy and completeness of the content in this publication and IIF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by IIF in this publication. This publication may contain links to other websites or publications and IIF has not reviewed such other websites or publications and is not responsible in any way in relation to the content of such websites or publications. The Sustainable Development Goals (SDGs) and all references and images related thereto are the exclusive property of the United Nations and are referenced purely for informational purposes in regard to the IIF impact platform and its alignment with the mission of the SDG program.

The information in this publication is the sole property of IIF unless otherwise noted, and may not be reproduced in full or in part without the express prior written consent of IIF.

All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with IIF. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital.

The materials provided in this publication are for informational purposes only and nothing in this publication can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this publication of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this publication constitute securities registered under the Securities Act of 1933 (of the United States of America) and IIF is materially limited in its capacity to sell any financial products of any kind in the United States. No investment product referenced in this publication may be publicly offered for sale in the United States and nothing in this publication shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any IIF investment product. The information provided in this publication is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this publication who wishes to engage with IIF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable.

By no means is the information provided in this publication aimed at persons who are residents of any country where the product mentioned herein is not registered or approved for sale or marketing or in which dissemination of such information is not permitted.

IIF disclaims all liability for any direct or indirect damages and/or costs that may arise from the use of (whether such use if proper or improper), or access to, this publication (or the inability to access this publication).

Any use of this publication shall be governed by Swiss law and any conflict of law provisions shall not apply. The exclusive forum for resolution of any dispute and/or claim arising out of or in connection with this publication shall be the courts of the Canton of Zurich, Switzerland.

Copyright 2020 InsuResilience Investment Fund. All rights reserved.

  • PDF version