InsuResilience Solutions Fund II

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The FC measure aims to improve the range of climate risk insurance in developing and emerging countries and thus increase the financial capacities of these countries with regard to climate change. Climate risk insurance helps to reduce the subsequent costs of extreme weather events and the associated financial and sometimes existential risks for poor and vulnerable people (such as low-income households, microfinance customers and agricultural businesses) in developing and emerging countries. To this end, the FC measure will holistically promote innovative climate risk financing approaches (including linking innovative concepts to the bilateral portfolio of German FC) using a three-pillar model. The funded projects are intended to directly and indirectly protect the poor and vulnerable population in developing and emerging countries against extreme weather risks. This will contribute to achieving the G7 goal of providing 400 million poor and vulnerable people with access to insurance solutions against the risks of climate change by 2020. The early involvement of the (international) private insurance and reinsurance sector as well as civil society is essential for the development of needs-based and financially sustainable climate risk insurance products and is therefore a core element of the proposed FC measure. In addition, a close link to applied research and training is absolutely necessary in order to consolidate the results obtained in practice and to train future specialists in the partner countries. The training and further education opportunities in the area of climate risk insurance in the partner countries made possible by practical research and project experience also increase the visibility of the German initiative. With the Frankfurt School of Finance and Management gGmbH as the project sponsor, Germany's position in the insurance sector is also strengthened.