Inclusive Innovations for market-based climate disaster risk financing and insurance
The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. With its capital mandate and instruments, 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. UNCDF also adopts a gender lens approach in all of its initiatives and activities to ensure overall inclusion and participation in the digital economy.
In partnership with the United Nations Development Programme (UNDP) and the United Nations University Institute of Environment and Human Security (UNU-EHS), UNCDF has developed the Pacific Insurance and Climate Adaptation Programme, PICAP (hereinafter referred to as the Programme), with the overall objective of “Pacific households, communities, small businesses, organizations and Governments are financially better prepared for climate change and natural hazards.” The Programme also aims to reduce the gender equity gap and ensure vulnerable social groups are access to suitable disaster risk insurance products.
The PICAP Programme is launching the Inclusive Insurance Innovation Lab (hereinafter referred to as the Lab). The Lab provides a platform for PICAP to support market innovations for bringing new disaster risk insurance products to the Pacific markets while investing in innovative business models and/or processes that improves the use case and customer experience of existing products, including the Parametric insurance product launched in Fiji in August 2021.
Under the Lab, PICAP has launched this Request for Applications (RFA) calling market players to submit proposals across three themes: 1) new parametric insurance product, especially for MSMEs and agriculture sector, in any of three markets in Fiji, Tonga and Vanuatu; 2) Improving access and use of disaster risk insurance and financial products by women, in any of three markets in Fiji, Tonga and Vanuatu; and 3) Testing and launching disaster risk insurance products in Tonga and Vanuatu.
In total, the Lab will support up to 15 implementing partners across the three countries by providing performance-based grants (PBAs) and technical assistance (TA) by de-risking their investments and supplementing their project teams with experts who have the know-how in delivering inclusive insurance and digital financial services in the Pacific markets.
Applications are invited from financial service providers, FinTech/Insurtech firms, civil society organizations, Startups with an existing product, training institutions, agent or distribution management firms, and other service providers offering services in the three thematic areas. Applicants must have a minimum of three years of operation in at least one of three countries: Fiji, Tonga, and Vanuatu.
The Lab will provide technical assistance, performance-based grants, advisory and mentorship services to the selected partners. The technical support would be provided by insurance, digital finance and innovation experts that are experienced in product and business model development and go-to-market strategies in some of the most challenging markets in developing economies.
The Programme, through the Lab and under the RFA, plans to invest up to USD 1.5 million (during 2022) on select innovative approaches and business models under the above-mentioned three themes. The financial grant will range from 25,000 to 250,000 USD with the average investment expected to be around USD 75,000.
Selected applicants will be signing a Performance-Based Agreement Grant (PBA) with UNCDF. Please review the PBA model provided in the below section.
Selected applicants will be expected to fund at least 30 percent of the total project cost for heads such as technical resources, staff, and operational expenses. 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 was issued.
For requests and queries, please send an email to firstname.lastname@example.org cc email@example.com with the title “Queries: Inclusive Innovations for market-based climate disaster risk financing and insurance.”
Applications should be submitted through UNCDF Grant Platform at this link: https://apply.uncdf.org/prog/ inclusive_innovations_for_market-based_climate_disaster_risk_financing_and_insurance
online at this before the application deadline: 27 February 2022 11.59 PM New York time (28 February 2022 16:59 Fiji time).
NEW DEADLINE TO SUBMIT YOUR APPLICATION ON 14TH MARCH 2022 11:59 PM EDT (NEW YORK TIME)!
For more information please download the following documents: