Urban Infrastructure Insurance Facility
Supporting Latin American and Caribbean cities cope with natural disasters.
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Aims
Up to ten selected cities undergo a risk assessment of their key assets and areas, which informs and tailors insurance coverage products to their specific needs. These products transfer their natural disaster risks to a cumulative portfolio (risk pool) that leverages economies of scale and risks sharing between insurers and reinsurers, thus reducing the premium costs for cities.
Following damaging natural disasters, cities benefit from rapid access to the financial resources of the risk pool to rebuild critical infrastructures and help the residents identified as most vulnerable cope with the impacts.
Benefits for participating cities
- Facilitated access to climate finance thanks to better risk management
- More affordable insurance coverage than cities could acquire on their own
- Climate-disaster risk transferred to the private sector
- Balance sheets are relieved from directly covering losses after natural disasters
- More owned resources to rebuild critical infrastructure and support the most vulnerable residents
- Legal and technical support
- Greater understanding of the risks to critical infrastructure and residents who are more vulnerable to climate impacts
- Opportunity of establishing long-lasting relationships with financial institutions and banks
- Reputation as urban insurance pioneer in Latin America and the Caribbean
Goals in numbers
cities from Latin American and Caribbean cities, forming a diverse risk pool
millions of covered poor and vulnerable populations
million EUR worth of insurance products, as combined insurance policies from insured cities
Partners
UIIF is financed by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by ICLEI – Local Governments for Sustainability.
For more information, contact uiif@iclei.org.