Call for Proposals: Climate Risk Insurance Product

Deadline Date: April 05, 2024

 Donor Name: InsuResilience Solutions Fund

 Grant Size: More than $1 million

https://insuresilience-solutions-fund.org/call-for-proposals

You are planning to develop, scale up or improve a climate risk insurance product and look for financial support? If yes, then apply for the InsuResilience Solutions Fund to support innovative solutions to mitigate these negative impacts of climate change.

Climate risk insurance projects in different sectors such as infrastructure (property), finance, emergency relief, nature, agriculture etc. are highly welcome under the ISF’s Call for Proposals.

Objectives and Targets

• Contribution to the development and implementation of climate risk insurance coverage for poor and vulnerable beneficiaries in developing and emerging countries, and therefore contributing to the adaption to climate change (by creating resilience) as well as food security and poverty reduction.
• Targets 1: Capacity building and knowledge transfer on climate risks and climate risk financing instruments
• Targets 2: Support for developing demand oriented sustainable climate risk insurance solutions in developing countries
• Targets 3: Crowding in of private capital for the development and implementation of climate risk insurance/financing instruments in developing countries

Focus Areas

• The InsuResilience Solutions Fund seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by:
  • Supporting comprehensive climate risk analysis as the basis for governments, businesses and households to become more proactive in risk management and to make informed decisions on climate risk management and adaptation strategies.
  • Offering studies and advice for the development of new concepts for climate risk insurance solutions that take into account the specific needs of the poor and vulnerable populations and
  • Co-funding the development and market introduction of insurance products, as well as supporting the expansion of existing innovative climate risk insurance products.

Support Areas of the ISF

• Making Informed Decisions
  • Research & Education
    • Climate risk analyses & advice
      • Climate adaptation project development
      • Policy support
      • Global Risk Modelling Alliance (GRMA)
• Developing Coherent Concepts
  • Concept development support
    • Grant funding
      • Feasibility studies
      • Consulting services
• Developing Insurance Products
  • Product development support
    • Grant co-funding
      • Product design
      • Start-up costs
• Market Placement
  • Premium support
    • Grant funding
      • Premium subsidies

Funding Information

• Maximum: EUR 2.5m
• Maximum: 24 months

Target Groups

• Target group of the ISF are joint initiatives of:
  • (local) public entities (e.g. national and regional government bodies or communities),
  • private companies in the insurance sector, and
  • NGOs, humanitarian organisations.

Target Countries

• Focus on poor and vulnerable households (< 15 USD PPP per capita per day) either directly (through micro-level insurance) or indirectly (through meso- or macro-level solutions).
• Countries in Asia and the Pacific, Africa and Latin America which are eligible to receive official development assistance (ODA) as defined by the OECD Development Assistance Committee and are vulnerable to extreme weather events.
• With the 9th Call for Proposals, ODA countries in Europe which are eligible to receive official development assistance (ODA) as defined by the OECD and are vulnerable to extreme weather events are now considered to be eligible for ISF funding.

Eligibility Criteria

• Organisations (public and/or private) forming Project Partners where:
  • At least two project partners are willing and legally entitled to sign the potential Grant Agreement
  • At least one project partner is located and legally registered in the country of implementation and legally entitled to sign the potential Grant Agreement
  • At least one project partner represents demand and needs of poor and vulnerable people (beneficiaries)
  • All main tasks in implementing the ISF project are covered
  • At least one entity is generally willing to act as risk taker
• Important: In case of a multi-country approach and country-specific constellation of partners, please submit one Concept Note per country.

Criteria

• The insurance product covers at least one of the following perils: flood, wind/storm, excess rain, drought/heat waves, cold spells (a combination with other perils is possible).
• Examples: Nat Cat, business interruption, property or agricultural insurance
• The project has a lifespan of up to 24 months/the product is ready for market placement and launch within 24 months after funding approval.
• A work, budget and time plan containing reliable cost estimations exist.
• Relevant experience of implementing partners, reference project exist.
• Funding is requested for product development related costs (e.g. data collection, IT, risk modelling, etc.).

Ineligible

• Early stage development projects e.g. research ideas
• Projects without a focus on the above-mentioned target group
• Likely unsustainable projects, e.g. relying on long-term subsidisation
• Financially-unstable and unexperienced product partners
• Projects with a questionable demand

For more information, visit ISF.