Amidst increasing climate-related risks and growing investment needs,\u00a0insurance is\u00a0critical to supporting economic resilience and unlocking\u00a0much-needed finance in\u00a0emerging\u00a0markets and developing economies (EMDEs). \u00a0\u00a0\u00a0
Climate-related insurance coverage for physical assets\u00a0ensures\u00a0reconstruction\u00a0in the event of\u00a0climate-induced or accelerated hazards, such as cyclones, flooding, and drought. This protection is needed across the spectrum, from smallholder farms to major infrastructure assets.\u00a0However, insurance products protecting physical assets from climate risks\u00a0remain\u00a0limited, and coverage for financial risks\u00a0remains\u00a0largely underdeveloped\u00a0in EMDEs.\u00a0\u00a0<\/p>\n\n\n\n
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Leveraging PDBs to overcome structural barriers <\/strong> Public Development Banks (PDBs) are uniquely positioned to bridge this gap by co-developing and scaling products that help overcome structural and market barriers to insurance access. While these banks can\u2019t underwrite insurance products directly, they can act as partners and intermediaries for private insurers, facilitating the deployment and co-development of innovative insurance solutions and integrating them into their own operations. <\/p>\n\n\n\n This report explores the different types of partnerships that PDBs 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. The study highlights the distinct, complementary roles of these institutions: <\/p>\n\n\n\n <\/p>\n\n\n\n This paper also examines how National and Regional Development Banks (NDBs and RDBs) can strengthen their capacity to leverage insurance instruments, while acknowledging the complementary financial and technical support provided by Multilateral Development Banks (MDBs). <\/p>\n\n\n\n <\/p>\n\n\n\n Expanding insurance solutions in EMDEs requires more than innovative products; it requires a coordinated ecosystem. By synchronizing efforts amongst governments, regulators, and credit agencies; PDBs and their partners can bridge the protection gap and establish a foundation for long-term, scalable climate resilience. Download the report for in-depth analysis and actionable recommendations on how PDBs can bridge the insurance gap in EMDEs.<\/p>\n\n\n\n <\/p>\n\n\n\n
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