Finance and insurance solutions InsuResilience Solutions Fund (ISF)

The ISF was founded and has been financed by KfW Development Bank on behalf of the BMZ. Frankfurt School of Finance & Management is charged with implementing the programme.

The purpose of the ISF is to enhance the resilience of vulnerable people against extreme weather events such as floods, storms, heavy rains, droughts and cold periods. To that end, the Fund provides support through four components:

1. Comprehensive climate risk analyses provide vital data and information for governments, businesses and civil society. Through the Global Risk Modelling Alliance (External link) (GRMA) programme, the ISF boosts expertise and experience in the field of climate risk analysis in partner countries. It does this by means of in-process knowledge transfer, with input from insurance industry experts. This enables partner countries to develop their own needs-based climate change adaptation strategies and proactive climate risk management.
2. The ISF also finances studies and advisory services to facilitate the development of new climate risk insurance products that meet the specific needs of vulnerable population groups.
3. One key element of the programme is the provision of co-funding for the development costs of innovative climate risk insurance products and their introduction to the market.
4. Furthermore, the ISF offers targeted financing of premiums in order to facilitate market launch of the insurance products developed.

With its innovative approach, the ISF seeks to leverage the expertise and risk capital of the insurance industry. Joint initiatives of local partners, insurance industry companies and non-governmental organisations make sure that climate risk insurance will be effective in those places where it is needed, thus ensuring that there will be both supply and demand.