InsuResilience Solutions Fund (ISF) VI

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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 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 the German FC) using a four-pillar model. Phase VI will be expanded to include a fourth pillar for premium subsidies and a new component for Risk Modeling Alliance (GRMA) under Pillar I. The implementation period will be extended to 2028. 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 objectives of the InsuResilience Global Partnership and actively participate in the coordination mechanism planned under the Global Protection Umbrella to mitigate climate risks. 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 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 offer in the area of climate risk insurance in the partner countries made possible by practical research and project experience will also increase the visibility of the German initiative.