Unlocking climate risk insurance: The role of public development banks

This report explores the different types of partnerships that Public Development Banks can pursue with private insurers to increase coverage that supports climate goals in EMDEs. Broadly, these partnerships include co-developing insurance solutions, bundling insurance with other financial instruments, providing technical assistance and capacity-building support, and knowledge-sharing initiatives. Amidst increasing climate-related risks and growing investment needs, insurance is critical to supporting economic resilience and unlocking much-needed finance in emerging markets and developing economies (EMDEs).

Recommendations emrging from the study include: 

1. Build an enabling environment to strengthen local and regional insurance markets
2. Unlocking Climate Risk Insurance: The Role of Public Development Banks Promote co-development and co-investment for insurance solutions
3. Provide targeted subsidies alongside technical assistance for insurance products.
4. Increase education and awareness regarding insurance solutions