The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. Unique in the UN system, UNCDF, with its capital mandate and instruments, can deploy a spectrum of financing solutions (grants, loans, and guarantees) and technical assistance to businesses that have a positive impact on achieving the Sustainable Development Goals.

UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.In partnership with the United Nations Development Programme (UNDP) and the United Nations University Institute of Environment and Human Security (UNU-EHS), UNCDF has established the Pacific Insurance and Climate Adaptation Programme (PICAP, hereinafter referred to as the Programme), with the overall objective to improve the financial preparedness and resilience of Pacific governments and communities, specifically vulnerable segments of society and economic sectors towards climate change and natural hazards. 

The Programme also aims to reduce the gender equity gap and ensure vulnerable social groups have access to suitable disaster risk financing and insurance products. The Programme was launched in December 2020 and has since introduced parametric market based micro insurance products to the market in three Pacific Island Countries – Fiji, Tonga, and Vanuatu. The inception phase of the programme (2021-2022) ended in December 2022 and based on the mid-term review completed, the expansion phase (2023-2025) has been approved. 

Based on the successful pilot in Fiji and the strong demand for Climate Disaster Risk Financing and in insurance (CDRFI) products across the region, the Programme is now looking to pilot, expand to and/or scale its operations in current markets and additional Pacific Island Countries, namely Kiribati, Vanuatu, Tonga, Samoa, Solomon Islands, PNG, Tuvalu and Timor Leste. As such, the Programme is now launching this Request for Applications (RFA), calling market players in Fiji, Tonga, Vanuatu, Kiribati, Samoa, Solomon Islands, PNG and Timor Leste, to submit proposals across three thematic areas/themes:

1. New & innovative CDRFI solutions for individuals, communities, and small businesses, especially micro and meso solutions; 
2. Improving access to and use of CDRFI solutions with a special focus on women, persons with disabilities and social inclusion; and
3. Testing and launching digital solutions using frontier technologies that improve the design, delivery, and impact of CDRFI solutions.

The Programme aims to support 20 implementing partners across the seven countries through a combination of performance-based grant agreements (PBAs) and technical assistance (TA) to de-risk their investments and supplement their project teams with experts who have the know-how in designing and delivering inclusive insurance, especially climate risk transfer solutions in the Pacific markets.

Applications are invited from both public and private sector actors, including financial service providers, development banks, pension and superannuation funds, FinTech and firms, Agri- sector agencies, cooperatives, civil society organizations, training institutions, agent or distribution management firms, technology service providers, and other service providers offering products and services in the three thematic areas. UNCDF welcomes local and provincial government agencies and line ministries to apply in partnership with service providers.

Applicants must have a minimum of two years of operation in at least one of the Pacific countries: Fiji, Tonga, Vanuatu, Kiribati, Samoa, Solomon Islands, PNG, Tuvalu, and Timor Leste.

The Programme, under the RFA, plans to invest up to USD 5 million in selected innovative approaches and business models under the above-mentioned three themes over the next three years. Depending on the size of the project and implementation capacities of the applicant, the financial grant will range from USD 25,000 to USD 250,000 with an average investment expected to be around USD 75,000*. Selected applicants will be signing a PBA with UNCDF.

Please review the PBA model available on the RFA website.

Applicants will be expected to fund at least 30 percent of the total project cost. The applicant co-finance may include both in-kind and cash contributions towards expenses such as technical resources, staff, and operational expenses. Miniumu 15% cash contribution is a requirement. Higher contributions are preferred.Applicants may apply independently or in a consortium, provided that there is a clear lead applicant and there is an established partnership prior to when this request for applications is issued.

For requests and queries, please send an email to uncdf.rfa@uncdf.org and cc praneel.pritesh@undp.org and akata.taito@undp.org with the title “Queries: Inclusive Innovations for market-based climate disaster risk financing and insurance in the Pacific.” 

Applications should be submitted via UNCDF’s plug-and-play e-investment platform.

This RFA will be on revolving basis where applicants will be able to submit applications under the three thematic areas when the proposals will be called for through the UNCDF e-platform in Q1 2023, Q1 2024, Q3 2024 and Q1 2025. 

This round of the RFA will be open for applications until 16th February 2024, 23:59 hours EDT time.  However, please visit UNCDF’s Apply platform to check if the deadline has not been extended. 

For more information please download the following documents:

• RFA document
• Technical proposal
• Budget and workplan
• CV form
• PBA sample

*The range indicates PICAP’s interest in supporting a wide range and scale of initiatives. *While the expected range is between USD 25,000 and USD 250,000; solutions with a large-scale impact may be eligible to receive the higher value of grants, a maximum of up to USD 500,000.