Urban Infrastructure Insurance Facility

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The aim of the project is to better protect critical infrastructure and poor, vulnerable populations in cities in Latin America from the effects of climate change. Cities are to be supported in using new or newly structured insurance protection against natural disasters, which quickly provides financial resources after damage events to rebuild critical infrastructure and support the poor, vulnerable population through emergency aid. The UIIF initiates product development by the private sector and bears a share of the development costs. Cities are supported in purchasing the policy through a proportional, temporary, limited premium subsidy. The insurance policies are bundled in a newly established risk pool in order to achieve diversification benefits. The cities are strengthened in their skills in comprehensive climate risk management through targeted technical advice in order to minimize risks and use the insurance payouts sustainably.