Climate Insurance Fund


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Presentation Fin4Ag S54 by Stefan W. Hirche

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Climate Insurance Fund

  1. 1. Climate Insurance Fund Session [S54] Weather risk management and agricultural finance Stefan W. Hirche, Director fin4ag: Revolutionising finance for agri-value chains Nairobi 17 July 2014
  2. 2. Overview • Two main objectives • Improving access to and the use of insurance in developing countries, contributing to climate change adaption • Reducing the vulnerability of MSME and low-income households to extreme weather events • The Climate Insurance Fund provides investments and linked technical support to qualified insurance and re-insurance companies in ODA recipient countries that offer insurance solution against extreme weather events/natural catastrophes or agricultural insurance • Fund Structure • The Fund is part of the Climate Adaption Platform PCC, based in Mauritius • Project of German Development Cooperation, financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) through KfW Development Bank • Set up in December 2013
  3. 3. Shareholder and Business Partner • Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance- based instruments • Global client base across all lines of business which consists of consists of insurance companies, mid-to-large-sized corporations and public sector clients. • Provision of standard products to tailor-made coverage across all lines of business • Promotional bank of the Federal Republic of Germany • As part of KfW Group, KfW Development Bank helps to promote the economy, reduce poverty and provide people with health care, education and a future • 80 offices and representations worldwide • In 2013, KfW Group committed a total financing volume of EUR 72.5 billion • Best long-term ratings: AAA/Aaa/AAA
  4. 4. Fund Investees • Investee eligibility criteria for an investment • High commitment to improving access to climate insurance • Professional management and transparent and adequate corporate governance structures • Compliance with local insurance regulations and applicable laws • Sound financial performance • Compliance with ESG standards in the country, respecting the principles of responsible finance • Benefits for our investees • Availability of growth capital • Diversified refinancing or shareholder structure • Cooperation with a reliable partner institution (experienced financial sector shareholder, clear development mission) • Improved access to re-insurance opportunities
  5. 5. Products and Services of the Fund (1) Financing: Broad range of financial instruments with flexible terms and conditions a. Direct loans, equity participations or mezzanine investments, contingency loans, guarantees b. Target maturity: 6 to 120 month c. Target investment size: USD 0.5-3 million (in exceptional cases of up to USD 5 million) d. Currency: USD or local currency e. Return expectations: double bottom-line investment (2) Technical assistance finance (3) Limited, product start-up premium support for insurance clients
  6. 6. Contact • Necessary details for consideration as an investee • Name and address of the institution • Corporate profile of your institution (shareholder structure, brief history, business model, portfolio, staffing, mission) • Information on legal status and licensing • Audited financial statements of last three years • Information on product portfolio: type of insurance that is offered, link to natural catastrophe or agricultural insurance, link to MSME/low-income households • Brief proposal of envisaged cooperation with Climate Insurance Fund • Contact persons Susanne Feser: Stefan W. Hirche: