United Nations Capital Development Fund and Sustainable Markets Initiative Insurance Task Force partner to scale insurance access for climate-vulnerable countries

20 Sep 2023

Lloyd’s, the world’s leading marketplace for insurance and reinsurance, on behalf of the Sustainable Markets Initiative’s Insurance Task Force, today announces a partnership with the United Nations Capital Development Fund (UNCDF) to scale insurance access for climate-vulnerable countries.

By signing of a Memorandum of Understanding (MOU), the partnership will involve all parties collaborating to design innovative insurance products that will deliver financial resilience against climate shocks in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).

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

The UNCDF and Lloyd’s will also promote Public-Private Partnerships in these regions, with the aim of closing the protection gap, and ensuring the knowledge gained from these actives is shared with key national, regional, and international stakeholders (including policymaking think-tanks, United Nations agencies, and academic research institutions).

“Insurance can serve as a powerful tool, not only in support of climate resilience, but also to secure the delivery of the Sustainable Development Agenda in the world’s most vulnerable countries. To deliver on this promise, we will need innovation and collaboration. The SMI as well as the partnership we are entering into today deeply reflects both of these elements.”

Mourad Wahba, Officer-in-Charge of the UNCDF

“Insurance has a vital role to play in building resilience against climate-related risks. 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.”

John Neal, CEO of Lloyd’s

As Chair of the 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 SID and LDC policymakers to best mitigate climate catastrophe risks.

The partnership signifies a joint ambition to advance and expand access to insurance products between Fiji and the rest of the Pacific (through so-called South-South), and between wider Northern and Southern Hemisphere countries, under the UNCDF Global Shield Coordination hub’s ‘North-South’. This ambition follows on from the successful launch by the Sustainable Markets Initiative Insurance Task Force of the Disaster Resilience Framework for Climate-Vulnerable Countries by the Sustainable Markets Initiative Insurance Task Force at COP26.

Notes to Editors

The MOU is based around the key objectives of:
- Collaborate in developing and deepening the understanding of the policy challenges related to climate & disaster risk insurance.
- Collaborate in gathering and monitoring global trends and best practices of private and public sector initiatives on micro insurance and climate risk insurance in climate vulnerable countries.
- Collaborate in promoting best practices guidelines for the inclusive insurance industry and deepen South-South as well as North-South cooperation.
- Collaborate in generating evidence and sharing knowledge with national and global stakeholders, including policymakers through events, webinars and participation in conferences.
- Co-publication of blogs, case studies and policy briefs.
- Promote public private partnerships to close the protection gap in line with the Sustainable Development Goals.
- The two parties will work towards creating joint programme under this MoU, details of which will be finalised using the appropriate collaboration format.

More information about the Disaster Resilience Framework for Climate Vulnerable countries

More information about the Insurance Task Force

Enquiries to:

Lloyd's media contact

UNCDF Media Contact

Sustainable Markets Initiative Media Contact

About UNCDF

The UN Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

About the Sustainable Markets Initiative (SMI)

His Majesty King Charles III, as the Prince of Wales, launched the Sustainable Markets Initiative at Davos in January 2020. The Sustainable Markets Initiative is a network of global, private sector CEOs across industries working together to build prosperous and sustainable economies that generate long-term value through the balanced integration of natural, social, human, and financial capital. These global CEOs are a ‘Coalition of the Willing’ helping to lead their industries onto a more ambitious, accelerated, and sustainable trajectory.

Further information

About Lloyd’s

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We’re working to build solutions for the most current and prevalent threats. As Chair of the Insurance Task Force for HM King Charles III’s Sustainable Markets Initiative, Lloyd’s is bringing the industry together to insure the transition to net zero. Our research community is pooling expertise from across the industry to provide cutting edge insight on systemic risks from climate change to cyber security.

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