The economic and financial losses caused by natural disasters have increased substantially over the last decades. It is expected that the frequency and severity of weather related events will further increase due to climate change. Developing and emerging countries are and will be particularly affected by these developments. Their capacities to cope with the effects of natural disasters and extreme weather events are limited. Traditional risk-sharing mechanisms and social safety nets fail by reason of the scale and effect of such catastrophic events. Access to insurance is limited in developing economies although insurance could effectively complement existing risk management strategies and reduce the vulnerability of countries and their population towards natural catastrophes. Insurance schemes reduce the dependence on public emergency assistance and compensate the affected in a direct way. Insurance pay-outs reach people much faster than emergency relief operations and more importantly, insurance can incentivize people to implement effective adaptation measures by leading to a reduction of the payable insurance premium.


The InsuResilience Investment Fund has been set up by KfW Development Bank on behalf of the Federal Republic of Germany, represented by the Federal Ministry for Economic Cooperation and Development (BMZ). The Fund commenced its business activities in January 2015.

KfW gives impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions, among others in the areas of small and medium-sized enterprises, entrepreneurialship, environmental protection, housing, infrastructure, education finance, project and export finance, and development cooperation.

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Main Characteristics and Objectives

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 micro, small and medium enterprises (MSME) as well as low-income households to extreme weather events.

The Fund also provides technical assistance e.g. for product design and development and – temporarily and to a very limited extent only – subsidies to reduce the premium payments for the end-clients.

The InsuResilience Investment Fund has two sub-funds:

  • Debt Sub-Fund: lends to financial institutions and aggregators in return for participation in the development and distribution of climate insurance.
  • Equity Sub-Fund: invests in insures and brokers actively building the market for climate insurance.

Target Countries and Target Group

Target Countries of the fund are ODA recipient countries as defined by the OECD Development Assistance Committee provided that they have an appropriate investment environment.

Target group of the InsuResilience Investment Fund are existing or new insurance or reinsurance companies that already provide or introduce insurance solutions that help clients mitigate climate related risks (e.g. insurance schemes for the clients of microfinance institutions, insurance schemes for agricultural companies, insurance schemes for countries or regions).

Fund Manager

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 6bn for sophisticated global private and public clients, enabling tangible social and environmental impact.

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Technical Assistance

CelsiusPro is a leading, Swiss-based weather and climate change insurance specialist. Founded in 2008, the company possesses ample international experience in structuring and originating tailored index products, mitigating the effects of adverse weather, climate change and natural perils.

CelsiusPro operates a state-of-the-art online platform for risk modeling, pricing, execution, transaction lifecycle management and reporting that allows users to model, price and transact a large number of transactions efficiently and at low cost. For additional information, please visit:

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