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The main four parametric disaster insurance risk pools have signed a grant agreement with the Global Shield Solutions Platform (GSSP) to help them accelerate and deepen their collaboration, something which could have implications for how they transfer risk to reinsurance and potentially capital markets.
Back in 2023, the African Risk Capacity Limited (ARC), Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), signed an MOU that called for them to explore a joint reinsurance facility, to enable more efficient risk transfer and access to the capital markets.
The four organisations form the Sovereign Risk Pools, regional parametric insurance facilities which were set up to serve the sovereign climate and disaster risk insurance objectives of nearly 100 nations globally.
The grant agreement with the Global Shield Solutions Platform (GSSP) will provide €4.7 million to help them in implementing their joint collaboration agreements.
It’s seen as a “significant step forward in strengthening collaboration among the Regional Risk Pools and underscores their shared commitment to strengthening financial resilience and promoting sustainable growth.”
A study commissioned by GSSP and undertaken by broker WTW had identified measures that could help optimise the regional parametric risk pools exposure to the private capital and reinsurance markets.
The phased development of a global facility was one recommendation, which has the potential to accelerate the scaling up of the regional entities into a diversified global risk pool, which could be very attractive to both reinsurance and capital markets.
Dr. Annette Detken, Head of GSSP explained, “At a time when political and fiscal challenges on climate finance are intensifying, this grant agreement provides a timely and necessary response. Regional Risk Pools are a proven, functional model for climate disaster risk financing and the Global Shield Solutions Platform is proud to facilitate their further collaboration and support their mission to enhance financial resilience against climate disasters.”
Lesley Ndlovu, CEO of ARC Ltd. commented, “This grant represents a pivotal step in turning our shared commitments into practical solutions. It enables ARC Ltd to deepen its impact across Africa while reinforcing the collective strength of the regional risk pools. By working together, we are enhancing countries’ ability to respond swiftly to climate shocks and building long-term financial resilience where it is needed most.”
Isaac Anthony, CEO, CCRIF SPC said, “This joint agreement heralds an exciting new beginning in the evolution of CCRIF and other regional risk pools. It represents a game-changer in how we deliver on our mandate as development insurers. By providing a stronger platform for collaboration, CCRIF will be better positioned to support the Caribbean and Central America in closing the protection gap while enhancing regional resilience to climate risks.”
Aholotu Palu, CEO of PCRIC added, “This partnership is a strong affirmation of the Pacific’s place in the global conversation on disaster risk financing. Through this grant, PCRIC can accelerate efforts to build tailored solutions for our region while contributing to a broader ecosystem of knowledge and solidarity among Risk Pools. We may be separated by oceans, but this collaboration shows our shared vision is united — to strengthen resilience and protect the lives and livelihoods of our vulnerable communities.”
Benedikt Signer, Executive Director of SEADRIF Insurance Company also commented, “The joint grant agreement marks a significant milestone in transforming evidence into meaningful action. This will support capacity building for beneficiaries, deployment of tested solutions, and strengthening of Risk Pools’ joint advocacy. Through close collaboration with regional risk pools, SEADRIF will expand its reach across ASEAN, further strengthening collective resilience and advancing sustainable growth.”
For these regional risk pools, the countries and people they serve, access to efficient risk capital is critical and anything that can be done to enable them to tap into the lowest costs of reinsurance capital can only help them expand their activities and deliver greater value to their constituents.
As a result, being able to diversify their sources of parametric reinsurance is also key, with the catastrophe bond market one instrument that could help in balancing their costs.
The capital markets and insurance-linked securities (ILS) have played a role for some of these risk pools in their reinsurance arrangements before.
Accessing the lowest cost reinsurance capital and benefiting from economies of scale and diversification could help these risk pools to deliver even greater value to the regions they serve.
Parametric regional risk pools get Global Shield support to deepen collaboration was published by: www.Artemis.bm
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred.
The main four parametric disaster insurance risk pools have signed a grant agreement with the Global Shield Solutions Platform (GSSP) to help them accelerate and deepen their collaboration, something which could have implications for how they transfer risk to reinsurance and potentially capital markets.
Back in 2023, the African Risk Capacity Limited (ARC), Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), signed an MOU that called for them to explore a joint reinsurance facility, to enable more efficient risk transfer and access to the capital markets.
The four organisations form the Sovereign Risk Pools, regional parametric insurance facilities which were set up to serve the sovereign climate and disaster risk insurance objectives of nearly 100 nations globally.
The grant agreement with the Global Shield Solutions Platform (GSSP) will provide €4.7 million to help them in implementing their joint collaboration agreements.
It’s seen as a “significant step forward in strengthening collaboration among the Regional Risk Pools and underscores their shared commitment to strengthening financial resilience and promoting sustainable growth.”
A study commissioned by GSSP and undertaken by broker WTW had identified measures that could help optimise the regional parametric risk pools exposure to the private capital and reinsurance markets.
The phased development of a global facility was one recommendation, which has the potential to accelerate the scaling up of the regional entities into a diversified global risk pool, which could be very attractive to both reinsurance and capital markets.
Dr. Annette Detken, Head of GSSP explained, “At a time when political and fiscal challenges on climate finance are intensifying, this grant agreement provides a timely and necessary response. Regional Risk Pools are a proven, functional model for climate disaster risk financing and the Global Shield Solutions Platform is proud to facilitate their further collaboration and support their mission to enhance financial resilience against climate disasters.”
Lesley Ndlovu, CEO of ARC Ltd. commented, “This grant represents a pivotal step in turning our shared commitments into practical solutions. It enables ARC Ltd to deepen its impact across Africa while reinforcing the collective strength of the regional risk pools. By working together, we are enhancing countries’ ability to respond swiftly to climate shocks and building long-term financial resilience where it is needed most.”
Isaac Anthony, CEO, CCRIF SPC said, “This joint agreement heralds an exciting new beginning in the evolution of CCRIF and other regional risk pools. It represents a game-changer in how we deliver on our mandate as development insurers. By providing a stronger platform for collaboration, CCRIF will be better positioned to support the Caribbean and Central America in closing the protection gap while enhancing regional resilience to climate risks.”
Aholotu Palu, CEO of PCRIC added, “This partnership is a strong affirmation of the Pacific’s place in the global conversation on disaster risk financing. Through this grant, PCRIC can accelerate efforts to build tailored solutions for our region while contributing to a broader ecosystem of knowledge and solidarity among Risk Pools. We may be separated by oceans, but this collaboration shows our shared vision is united — to strengthen resilience and protect the lives and livelihoods of our vulnerable communities.”
Benedikt Signer, Executive Director of SEADRIF Insurance Company also commented, “The joint grant agreement marks a significant milestone in transforming evidence into meaningful action. This will support capacity building for beneficiaries, deployment of tested solutions, and strengthening of Risk Pools’ joint advocacy. Through close collaboration with regional risk pools, SEADRIF will expand its reach across ASEAN, further strengthening collective resilience and advancing sustainable growth.”
For these regional risk pools, the countries and people they serve, access to efficient risk capital is critical and anything that can be done to enable them to tap into the lowest costs of reinsurance capital can only help them expand their activities and deliver greater value to their constituents.
As a result, being able to diversify their sources of parametric reinsurance is also key, with the catastrophe bond market one instrument that could help in balancing their costs.
The capital markets and insurance-linked securities (ILS) have played a role for some of these risk pools in their reinsurance arrangements before.
Accessing the lowest cost reinsurance capital and benefiting from economies of scale and diversification could help these risk pools to deliver even greater value to the regions they serve.
Parametric regional risk pools get Global Shield support to deepen collaboration was published by: www.Artemis.bm
Our catastrophe bond deal directory
Sign up for our free weekly email newsletter here.
