Finance and insurance solutions InsuResilience Solutions Fund (ISF)

    Logo: InsuResilience Solutions Fund

    The InsuResilience Solutions Fund (ISF) is an implementation programme that emerged from the InsuResilience Global Partnership (IGP). Among other things, the Fund supports the development of innovative climate risk insurance products in developing and emerging economies in order to strengthen the resilience of vulnerable households to climate risks.

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

    The ISF pursues targeted activities to boost resilience against extreme weather events such as floods, storms, heavy rainfall, droughts and cold periods. To that end, the Fund provides support in four key areas:

    1. Climate risk analyses and transfer of knowledge. The ISF facilitates comprehensive climate risk analyses for governments, businesses and civil society. Through the Global Risk Modelling Alliance (GRMA) programme, the Fund provides targeted support to the transfer of knowledge. Insurance specialists support local projects so that partner countries are able to develop their own anticipatory climate risk management and needs-based climate change adaptation strategies.
    2. Research and advisory services. 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 communities.
    3. Co-funding the development of insurance products. One key element of the ISF is support for the technical development of innovative Climate and Disaster Risk Finance and Insurance (CDRFI) products and their introduction to the market.
    4. Funding for premium subsidy support to bring CDRFI solutions to market. In order to make sure that new insurance products can really be used, the ISF provides targeted premium subsidy support.

    With its innovative approach, the Fund seeks to match up the expertise and risk capital of the international insurance industry with local needs in partner countries. Cooperation between local partners, insurance industry companies and non-governmental organisations facilitates solutions that generate impact exactly where it is needed most.

    Example: ISF support in Lagos State

    Here is an example from the ISF's current work which illustrates its impact. As part of the Tripartite Agreement Programme – a cooperative endeavour between the BMZ, UNDP and the Insurance Development Forum (IDF) –, the InsuResilience Solutions Fund (ISF) is providing support for the market introduction of parametric flood risk insurance for Lagos State, Nigeria. This insurance policy helps to improve coverage for up to four million vulnerable people. If triggered, up to 7.5 million US dollars can be provided for flood response and recovery. The mechanism ensures that financial resources can flow quickly and predictably to communities when floods strike.

    This solution was developed by a consortium of IDF member organisations in cooperation with Lagos State, harnessing technical expertise in flood risk modelling and satellite data. The ISF is co-funding both the development of the insurance products and their introduction to the market.

    As at: 29/09/2026