Premium Financing Support

CDRFI Access and Affordability

As economic losses from disasters and climate change continue to rise, developing countries often find their domestic budgets insufficient to absorb and mitigate these impacts. Consequently, there is an urgent need for improved access to a variety of Climate and Disaster Risk Finance and Insurance (CDRFI) solutions, as well as guidance and support to help implementing them.

Specifically, countries require more reliable and cost-effective financial resources to respond to disasters and enhance their financial resilience. However, CDRFI solutions must be both accessible and affordable, and they must address the specific challenges countries face from disaster impacts; otherwise, their full potential will not be realised. Premium financing support could help alleviate affordability concerns, but this must be carefully evaluated within the broader context of governmental decision-making and local market conditions on climate and disaster risk financing.

Offering Premium Subsidies

We support and provide grant-based funding to bring these solutions to market,taking into account the specific needs of vulnerable populations. The aim of the premium subsidy support is to enhance affordability of the product until (a) a self-sustained status is reached, (b) government subsidies or other financing streams become available, helping to strengthen the resilience against climate-related risks.

In accordance with the principles on “Smart Premium and Capital Support: Enhancing Climate and Disaster Risk Finance Effectiveness Through Greater Affordability and Sustainability” set out in the policy note adapted by the High Level Consultative Group (HLCG) of the InsuResilience Global Partnership in 2021,the ISF follows these common principles in the manner as follows:

S:

Sustainable Impact For The Most Vulnerable

M:

Value for Money

A:

Accessibility

R:

Resilience-building incentives

T:

Transparency and Consistency

To ensure effectiveness and sustainability, premium financing support by the ISF isoffered exclusively to partners that have or are receiving support from the ISF forthe development, improvement and implementation of their climate-risk insuranceproduct(s).

Our Projects

Project Lead: NSDMA

Development of a sub-sovereign natural disaster risk insurance scheme for Nagaland

Grant Amount: 660,000 €
Project Start: June 24
Project End: June 27

Project Lead: Lagos State

Flood risk cover for Lagos State in Nigeria (TPA)

Grant Amount: 1,429,927 €
Project Start: December 25
Project End: January 28

Project Lead: IFRC

Global Insurance for the Disaster Response Emergency Fund

Grant Amount: 2,000,000 €
Project Start: July 24
Project End: August 26

Project Lead: Shikhar Insurance

Index-Based Flood Insurance (IBFI) in Nepal

Grant Amount: 331,480 €
Project Start: May 25
Project End: June 27

Project Lead: Agro Consortium (U)

Index-insurance in Uganda, a real business with the potential to serve millions

Grant Amount: 1,000,000 €
Project Start: Nov 24
Project End: Nov 27

Project Lead: MAR Fund

Mesoamerican Reef insurance Program

Grant Amount: 400,000 €
Project Start: Nov 24
Project End: Nov 27

Project Lead: Lorica

Scaling up agricultural insurance for smallholder farmers in Togo

Grant Amount: 999,816€
Project Start: May 25
Project End: Jun 27

List of Grants

Country	Project Lead	Title	Approach	Assets	Hazard	Project Start	Project End	Status	More information
Global	IFRC	Insurance for the Disaster Response Emergency Fund	Multi	Emergency relief	All types of natural disaster	Jul-24	Aug-26	Ongoing	PDF
India	Faber Consulting	Development of a sub-sovereign natural disaster risk insurance scheme for Nagaland	Macro	Infrastructure/Agriculture	Excess Rainfall, Earthquake	Jun-24	Jun-27	Ongoing	PDF
Mesoamerican Reef Region	MAR Fund	Mesoamerican Reef insurance Program	Meso	Coral Reef	Windstorms	Nov-24	Nov-27	Ongoing	PDF
Nepal	Shikhar Insurance	Index-Based Flood Insurance (IBFI) in Nepal	Multi	Paddy Rice Production	Flood	May-25	Jun-27	Ongoing	PDF
Nigeria	Lagos State	Flood risk cover for Lagos State in Nigeria (TPA)	Macro	Emergency Relief	Flood	Dec-25	Jan-28	Ongoing	PDF
Togo	Lorica	Scaling up agricultural insurance for smallholder farmers in Togo	Micro	Agricultural Production	Drought, Excess Rainfall	May-25	Jun-27	Ongoing	PDF
Uganda	Agro Consortium (U)	Index-insurance in Uganda, a real business with the potential to serve millions	Multi	Agricultural Production	Drought, Excess Rainfall	Nov-24	Nov-27	Ongoing	PDF