Finance and insurance solutions The Global Risk Financing Facility (GRiF)
Within this framework, Germany has so far committed 230 million euros (as of September 2022) to support the achievement of the targets of the InsuResilience Global Partnership.
GRiF was set up in order to enhance the financial resilience of poor and vulnerable people in developing countries against natural disasters. It supports governments as they introduce risk financing tools, including market-based insurance. This facilitates earlier and more predictable reconstruction after disasters.
GRiF finances climate risk components for World Bank programmes in the following six areas:
- financing of insurance premiums, for instance to pay for risk transfer instruments,
- contingent financing, such as buy-down of interest rates to complement risk transfer solutions,
- investment in risk financing, for example operating costs and capital for risk pools,
- integration of risk transfer through loans to pilot new approaches to support debt sustainability after extreme weather events,
- risk financing mechanisms that foster parallel improvements in country systems for crisis response and recovery, and
- technical assistance and capacity building.
Financial insurance for vulnerable countries
By the end of fiscal year 2022, GRiF had received financial support totalling 316 million US dollars and had distributed 213 million US dollars to 40 World Bank projects. This has already benefitted 3.7 million people overall.
Eighteen World Bank projects have received GRiF grants. Fourteen grants facilitated the development of financial solutions to mitigate climate and disaster risks at country or regional level.
Furthermore, as reliable data are key to the analysis of disaster risks, GRiF provided four grants in support of investment in innovations that utilise big-data and satellite technologies for remote sensing. This shall improve the access of developing countries to state-of-the-art climate and disaster risk data and analyses.
As at: 03/11/2023