Partnership Aims To Develop Insurance for Climate-Vulnerable Countries

Lloyd's, on behalf of the Sustainable Markets Initiative's Insurance Task Force, has entered into a partnership with the United Nations Capital Development Fund (UNCDF) to scale insurance access for climate-vulnerable countries.

The partnership will see the parties collaborating to design innovative insurance products that will provide financial resilience against climate shocks in small island developing states and least-developed countries (LDCs).

Initially focused on building and scaling solutions across Fiji and the Pacific Islands, the partnership will also seek to replicate the model in other regions of the world, including Asia and parts of Africa.

The UNCDF and Lloyd's will also promote public-private partnerships in those regions with the aim of closing the protection gap and ensuring that knowledge gained from the partnership's activities is shared with key national, regional, and international stakeholders.

"Insurance has a vital role to play in building resilience against climate-related risks," Lloyd's CEO John Neal said in a statement. "This partnership with the UNCDF underpins the Sustainable Markets Initiative's mission to develop a coordinated global effort to mitigate climate and natural catastrophe risks as we progress towards a more sustainable future."

As chair of the Sustainable Markets Initiative's Insurance Task Force, Lloyd's will collaborate with the UNCDF to identify and address potential policymaking challenges hindering the development of climate risk insurance in developing markets, as well as promoting best practice initiatives for small island developing states and LDC policymakers to best mitigate climate catastrophe risks.