Finance and insurance solutions Natural Disaster Fund (NDF)

Global Parametrics manages the NDF, covering the entire value chain from risk analysis and modelling all the way to risk coverage from the NDF. Global Parametrics works closely with intermediaries from the private and non-profit sectors, for example microfinance institutions, non-governmental organisations and social enterprises, and from the public sector. These intermediaries work directly with people in the partner countries in question.

Coverage is provided through tailor-made parametric products. When a disaster hits, intermediaries receive predefined disbursements as soon as certain parameters are exceeded (regarding, for example, wind speed, rainfall, or duration of a drought). Funding is made available without investing time and effort in claims reviews. Intermediaries can use the money immediately to assist local people and improve their living conditions.

At COP25 in 2019, NDF Deutschland was founded by the BMZ, KfW Development Bank, Global Parametrics and Hannover Re. The Fund works closely with its partner NDF UK, which was set up in early 2018. In 2025, Japanese insurance company MS Amlin joined the Fund as a capacity provider.

One key feature of the financing model is that Hannover Re and MS Amlin usually shoulder 75 per cent of the risk up to an amount of 150 million euros – a strong lever for the mobilisation of private capital. The NDF thus provides an option for private investors (such as reinsurance companies) to contribute to covering climate risks in markets which they have not entered yet. This is a promising new form of public-private partnership (PPP).

As at the end of 2025 (External link), NDF Deutschland had paid out benefits amounting to 61.6 million US dollars, of which over 15 million US dollars was paid out during 2025. As at end 2025, this risk transfer effort had helped to strengthen the climate resilience of 38.5 million climate-vulnerable people in 70 countries, including 34.3 million poor and vulnerable beneficiaries.

More information on the NDF can be found on its website (External link).