Outreach and Impact

The objective of the InsuResilience Investment Fund Private Equity II is to improve the resilience of poor and vulnerable households as well as micro, small and medium enterprises (MSMEs) to weather events, natural catastrophes, pests, and pandemics.

The Fund is part of the G7 InsuResilience Global Partnership and contributes to a number of the UN’s Sustainable Development Goals (SDGs).

Core SDGs
Aligned SDGs
  • Core SDGs are those that address the impact intent and/or sustainability investment objective of a given fund
  • Aligned SDGs are those that the fund’s investees promote through responsible ESG management practices
Outreach

The fund will provide capital to insurers, reinsurers, brokers, aggregators, and other businesses involved in the value chain of insurance that develop, offer, or distribute insurance products covering climate risks (e.g. crop insurance, livestock insurance, business interruption from pandemics, property damage from natural disasters) to a material extent.

For more information about the first fund’s outreach, please see our most recent report, available here.

Impact

Beneficiary numbers will depend on the sector mix in which the fund will be invested, with technology typically providing the highest number of beneficiaries.

InsuResilience Contribution

Technical Assistance and Premium Support Facility

IIF Technical Assistance Facility (IIF TAF) will provide international expertise to launch and boost climate insurance. EUR 3.5 million have been provided by the Federal Ministry for Economic Cooperation and Development (BMZ) of the Federal Republic of Germany, and will be managed by BlueOrchard Finance Ltd.

Projects supported will include feasibility studies, insurance product design, marketing, and distribution support. This will accelerate the growth of portfolio companies and will reduce the time to market as well as the companies’ set-up costs.

The fund will also be supported by a Premium Support Facility which may provide temporary subsidies to reduce the climate insurance premiums paid by the clients of any of the Fund’s portfolio companies. EUR 3.0 million have been provided by the Federal Ministry for Economic Cooperation and Development (BMZ) of the Federal Republic of Germany, and will be managed by BlueOrchard Finance Ltd.

The facilities will help portfolio companies and clients overcome information asymmetries, will make insurance policies more affordable, especially in the introductory phase, and will ultimately increase demand for climate insurance.