The main four parametric natural disaster insurance risk pools have committed to a unique collaboration, which will see them explore the creation of a joint risk finance and reinsurance platform.
This initiative, aimed at expanding global climate risk protection, brought together representatives from African Risk Capacity Ltd. (ARC), CCRIF SPC, SEADRIF Insurance Company, and the Pacific Catastrophe Risk Insurance Company (PCRIC), meeting at The Rockefeller Foundation Bellagio Center in late February.
The discussions centered on the systemic barriers currently hindering the scale of climate insurance.
“We had honest discussions about what is constraining scale today: a persistent undervaluation of insurance in climate finance, with few targets or metrics for protection coverage; fragmented capital, short reinsurance cycles, pricing volatility, and limited integration into fiscal planning. Protection will not scale until we build new forms of capital structure, coordination, and political ownership,” SEADRIF commented.
Adding: “We explored how catalytic public capital can work alongside private markets, and how better coordination across regional risk pools, including the potential role of a joint reinsurance platform, could support more stable risk capacity.”
In response, the four pools have entered a joint design phase to develop a shared risk finance and reinsurance platform.
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