IIF is a highly effective solution to facilitate climate adaptation. It has the potential to reach between 100 and 145 million beneficiaries by December 2025.
The target clients for the fund include those with less than USD 15 per day who live in official development assistance countries and are exposed to extreme weather conditions. IIF utilises investment into local MFIs and insurance companies through loan and equity as well as technical assistance to catalyse the impact of the investment.
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
|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