Climate Insurance Fund IV - Trust Participation

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As a contribution to climate adaptation, the German G7 Presidency launched the InsuResilience Initiative in 2015, followed by the G20 InsuResilience Global Partnership. The InsuResilience Investment Fund (IIF), formerly known as the Climate Insurance Fund, is an anchor investment of the German Financial Cooperation (FC) in this initiative. In addition to the FC funds, the IIF is investing a further USD 102 million from institutional investors. The aim of the IIF is to strengthen the resilience and adaptability of poor and vulnerable population groups in developing countries to the consequences of climate change. Improving the supply and use of extreme weather risk insurance should help reduce the financial risks for low-income households, microfinance customers and agricultural businesses. The fund provides equity investments as well as loans, guarantees and so-called contingency loans to insurance companies and their intermediaries, such as brokers and financial institutions. In addition to financing measures, the IIF supports advisory and training measures to develop needs-based insurance, empower investors and create transparent and fair insurance policies in the spirit of responsible finance. The fund can also promote market development in the reinsurance sector to support the development of financially sustainable insurance solutions for extreme weather risks. To promote the introduction of new insurance products, the fund provides limited-term funds to reduce insurance premiums for end-insured parties.