Lloyd’s and the UNCDF to run parametric insurance training in climate vulnerable countries

Lloyd's, the world's leading marketplace for insurance and reinsurance, has progressed a partnership with the United Nations Capital Development Fund (UNCDF) and the Sustainable Markets Initiative's Insurance Task Force with the delivery of two training workshops in Papua New Guinea and in Fiji.

Aligned with Lloyd's and the UNCDF's collective objective to scale insurance access for climate-vulnerable countries, the workshops are being run to support the local development and understanding of parametric insurance for regional insurers, reinsurers, and central banks in Pacific Island countries.

This work follows on from the Memorandum of Understanding (MOU) signed by the parties in September 2023, which aims to build the technical capacities of insurance providers in Least Developed Countries (LDCs), Small Island Developing States (SIDS) and climate vulnerable countries.

When adopted as part of a diverse insurance offering, parametric policies can support disaster risk reduction and be used to bolster regional and country specific climate adaptation models as well as national Disaster Risk Facility (DRF) strategies.

Initially focussing on building and scaling solutions across Fiji and the Pacific Islands, the partnership will also seek to replicate the model in other regions, including Asia and parts of Africa.