The V20 has formally launched its new Sustainable Insurance Facility (SIF) at COP26, with a project targeting the development of climate-smart insurance in the Philippines the first to be launched through the initiative.
The Asia-Pacific Climate Finance Fund (ACliFF) will administer insurance for micro, small and medium sized enterprises, with funding from Germany’s Federal Ministry of Economic Cooperation and Development (BMZ).
BMZ director general Jürgen Zattler said the project will establish a viable and sustainable business case and model for climate and disaster insurance.
“Small enterprises frequently lack access to effective risk management tools, such as climate risk insurance, to protect against climate and disaster shocks,” he said.
“Promoting insurance access and adoption among small enterprises provides financial protection that helps to safeguard development gains and avoid reliance on adverse and less effective coping mechanisms.”
The work will also explore solutions that address the gender-specific impacts of disasters affecting micro, small and medium sized enterprises in the Philippines.
ACliFF, which was established in 2017, is also set to explore future collaboration with the SIF across other countries in the Asia Pacific region.
The programme outcomes will contribute toward the InsuResilience Global Partnership’s Vision 2025 target to cover 500 million poor and vulnerable individuals against climate and disaster shocks by 2025.