InsuResilience Investment Fund II (IIF II) [C156]
InsuResilience Investment Private Equity Fund II (IIF II) is a blended finance structure launched to mobilise public and private sector capital to support climate change adaptation and build resilience in developing countries. The overall objective is to facilitate adaptation to climate change by improving access to and the use of climate insurance solutions and providing affordable climate risk insurance protection to vulnerable populations and businesses in developing countries.
REGION
Multiple regions
PROJECT REFERENCE
NDF C156
DURATION
2024 to 2034
NDF FINANCING
USD 14.5 million
FINANCING TYPE
Junior equity and grant
FUND MANAGER
BlueOrchard Finance Ltd.
NDF CONTACT
Isabel Leroux, Program Manager (isabel.leroux@ndf.int)
Objective
IIF II aims to strengthen the resilience of developing countries and to protect the lives and livelihoods of people in vulnerable situations and living in poverty from the impacts of climate shocks and disasters by enabling faster, more reliable, and affordable responses, primarily through providing insurance products that offer coverage against climate shocks and disasters. IIF II invests across the value chain of climate insurance, from traditional insurance companies to providers of technology and services.
The role of climate risk insurance is generally acknowledged as central in addressing the impacts of climate change, particularly in highly vulnerable sectors such as the agricultural sector, as well as building resilience and increasing the adaptative capacity of vulnerable populations, including smallholders and small businesses in developing countries. While climate risk insurance is an established product in the insurance markets in higher income countries, it is still a nascent sector in most lower income countries. The Fund’s blended structure has been developed to support the investment strategy that targets the climate insurance market that is still in the early stage of development in many developing countries.
Outcomes
The Fund's investment and impact strategy has a significant opportunity to contribute to SDG 1 Poverty Reduction, by building the resilience and reducing exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters, with a focus on protecting the poor and people in vulnerable situations. The Fund contributes to SDG 11 Sustainable Cities and Communities, by decreasing the direct economic losses caused by weather events and disasters both in rural and urban contexts, and to SDG 13 Climate Action, by strengthening resilience and adaptive capacity to climate-related hazards and natural disasters. Moreover, by supporting portfolio companies in developing gender-responsive strategies and solutions targeting female beneficiaries of climate and weather insurance products, the Fund will contribute to SDG 5 Gender Equality.
Financing
NDF contribution to IIF II includes a USD 13.5 million junior equity investment and a complementary grant contribution to the Technical Assistance Facility (TAF).
