Outreach and Impact

The InsuResilience Investment Fund (IIF) aims to facilitate climate adaptation by improving access to and use of climate insurance solutions in developing countries. It is focused on improving the resilience of poor and vulnerable households as well as micro, small and medium enterprises (MSMEs) to weather events.

IIF 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 invests in a range of microfinance institutions (MFIs), insurance companies and providers of climate technology and data solutions. For a full list of investees, click here.

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

Impact

IIF is a highly effective solution to facilitate climate adaptation. It has the potential to reach between 70 and 110 million beneficiaries by December 2025.

The target clients for the fund include low-income, poor, and vulnerable households as well as micro, small and medium enterprises who are based in official development assistance countries and are exposed to extreme weather conditions. To that end, the sub-funds will provide financing to qualified insurance and reinsurance companies, as well as to other companies active in the value chain of insurance and reinsurance. IIF utilises investment into local microfinance institutions and insurance companies through loan and equity as well as technical assistance to catalyse the impact of the investment.

IIF Technical Assistance and Premium Support Facility

IIF has executed more than 60 technical assistance projects across the globe. Technical Assistance Facility (IIF TAF) provides international expertise to launch and boost climate insurance. Most used TAF services are marketing and distribution support and education workshops.

InsuResilience Contribution
IIF Technical Assistance

IIF has executed more than 20 Technical Assistances across the globe. Technical Assistance Facility (IIF TAF) provides international expertise to launch and boost climate insurance. Most used TA services are marketing and distribution support and education workshops.

IIF provides pre-investment services to boost IIF investment and climate insurance

The education workshop brings stakeholders together and creates momentum for climate insurance. It can be tailored to the needs of the IIF company and local context. We have successfully conducted close to ten workshops. Due to the COVID-19 Pandemic, the workshops are also offered in a virtual setting.

The business plan on climate insurance insurance provides a solid basis to enable IIF investment. Within 1 month the business plan is written by experienced international consultants.

LatAm rainfall dataset

The IIF TA created a new climate dataset to support the development of parametric insurance in Latin America. The dataset is useful for farmers, local insurers and reinsurers, public entities and academics, and is free to access. Ultimately the Lat Am Dataset will allow for better management of agriculture risks over the continent.

The LatAm Dataset is one of the best rainfall dataset covering the region offering daily data on a 25km x 25km spatial resolution. Daily rainfall is available with one day latency. Data is available to everybody and downloadable here.

The positive impact of climate insurance
BenefitDescription
Financial stability and resilience– Farmers are able to better manage their risks; they are not forced to resort to negative coping strategies such as selling their productive assets, reducing food consumption or migration
– Climate insurance allows farmers to sustain their income and to continue farming even if a harvest is lost
Better access to funding– Climate insurance at the household level allows farmers an easier access to credit, providing partial security
– Favourable funding of MFIs insuring their portfolios may indirectly benefit farmers through better terms
Productivity and innovation– Better credit availability allows farmers to invest in technologies that boost their productivity
– Improving farmers’ risk taking capacity can lead to investments in higher quality seeds and crop protection, ensuring a more stable harbest
Better future– Farmers are not forced to remove their children from school during periods of financial stress; they can provide their children with a better education
– As farmers are not forced to start from scratch each time but rather are able to invest in their productivity and innovation capability, climate insurance enables them to create savings in the long run

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

The fund will be able to report on its impact contribution following its first investments.

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.

This website provides general information for personal use and information of professional investors only. Neither the information, nor any opinion, contained on this Website constitutes marketing, solicitation, recommendation, offer or invitation to subscribe or redeem fund units, to execute any transactions or to enter into any legally binding agreements. The IIF Fund shall not be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the applicable regulations and laws of such jurisdiction. Please read our full disclaimer statement in the “Disclaimer” page.