Background facts InsuResilience Solutions Fund (ISF)
It was founded and has been financed by KfW on behalf of the BMZ. Frankfurt School of Finance & Management has been charged with implementing the programme.
The purpose of the ISF is to enhance the resilience of poor and vulnerable people against extreme weather events such as floods, storms, heavy rains, droughts, and cold periods. To that end, the ISF provides support through three components:
- It carries out comprehensive climate risk analyses to provide vital data and information to governments, businesses and civil society. This helps with the development of needs-based climate change adaptation strategies and proactive climate risk management.
- The ISF also funds studies and advisory services for the development of new concepts for climate risk insurance products, taking account of the specific needs of poor and vulnerable groups.
- One key element of the programme is the provision of partial funding for the development costs of innovative climate risk insurance products and their introduction to the market.
With its innovative approach, the ISF seeks to leverage the expertise and risk capital of the insurance industry throughout all three components. Joint initiatives with local partners, insurance industry companies and NGOs make sure that climate risk insurance will be effective in those places where it is are needed, thus ensuring the sustainability of supply and demand.
For instance, the Fund signed a support agreement with the South African Land Bank Insurance Company and with Celsius Pro to give small farmers easier access to agricultural insurance. The ISF grant is used to partly finance the development and market introduction of an innovative index-based insurance scheme for small farmers in South Africa. By 2021, the scheme is to cover some 240,000 people.