Convergence and Global Asia Insurance Partnership (GAIP) have signed a memorandum of understanding (MoU) to promote the role of the insurance sector in supporting climate-resilient health outcomes in developing countries through blended finance.
In blended finance, risk-mitigating instruments such as insurance are crucial to adjusting the risk-return profile of transactions such that private investors can enter developing countries, however to date insurance sector participation in blended finance has been limited.
This partnership aims to encourage the mobilization of insurers into blended structures addressing the climate and health risks faced by marginalized and vulnerable communities in developing countries. A key deliverable of this partnership will be a playbook for leveraging insurance and blended finance for climate action. In addition to the playbook, the partnership will support capacity building as well as knowledge dissemination on the critical role that the insurance sector can play in blended finance.
“The challenges posed by climate change require collaborative efforts with different stakeholders in the ecosystem,” said Ritesh Thakkar, Senior Advisor, Asia Pacific, at Convergence. “This partnership between Convergence and GAIP aims to outline how the insurance sector can more efficiently and effectively engage in blended finance, with the ultimate goal of mobilizing more private financing towards climate action in developing countries.”
"The insurance sector, with its expansive risk management expertise, is well placed to support resilience development, especially in the face of the challenges posed by climate change. Through this partnership, we aim to unlock the full potential of the sector in blended finance and the different ways in which the sector can support vulnerable communities, creating opportunities for growth and impact,” said Min Hung Cheng, Deputy CEO, GAIP.
About Global Asia Insurance Partnership (GAIP)
GAIP is a tripartite partnership between the global insurance industry, regulators, policymakers, and academia. Our vision is to build a risk-resilient and sustainable world through insurance, closing protection gaps. We are dedicated to bridging Asia’s protection gaps with innovative, long-term solutions in insurance and risk resilience. Through in-depth research, policy development, and talent building, we collaborate across sectors to shape a more secure future for businesses, individuals, and governments across the region.
About Convergence
Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals and Paris Agreement. Our members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further. We offer this community exclusive access to original market intelligence and knowledge products (such as case studies, data analyses, and online and in-person training), networking events, and more. To accelerate advances in the field, Convergence also provides grants for the design of vehicles that could attract private capital to global development at scale.
