The Role of Insurance in Blended Finance: From Risk Solutions to Investment Capital

Insurance remains a powerful yet still limited tool in blended finance, one that holds untapped potential to mobilize private capital and enhance risk management. The insurance sector can be a multi-dimensional partner in blended finance, contributing market expertise, risk solutions, and capital. Their engagement can span three key roles: (i) as __Risk Advisors__, guiding the design and feasibility of blended finance transactions; (ii) as __(Re)Insurers__, providing coverage within de-risked blended transactions or underwriting blended insurance products supported by concessional capital; and (iii) as __Investors__, deploying assets under management into blended vehicles.

The session will open with key insights, data, and trends from our latest "Playbook on the Insurance Sector’s Roles in Blended Finance at the Climate-Health Nexus" produced in partnership with the Global Asia Insurance Partnership (GAIP). This will be followed by two 20-minute case study presentations, each demonstrating a distinct way the insurance sector can engage in blended finance:

__Room2Run (AfDB)__: A landmark USD 2 billion synthetic risk transfer enabled the African Development Bank to free up lending capacity for high-priority sectors, especially climate finance. Through this transaction, the UK’s Foreign, Commonwealth & Development Office (FCDO) and three private insurers provided risk coverage on the Bank’s sovereign portfolio, creating new headroom for fresh lending across regional member countries.

__IDI Sao Mai and AquaOne (GuarantCo)__: showcasing how a full guarantee attracted insurance investors to finance national infrastructure.

Join us on 26 November at 9:00 AM ET for this webinar featuring expert speakers from across the insurance and blended finance ecosystem.

Member Training: The Role of Insurance in Blended Finance: From Risk Solutions to Investment Capital

Join us for our next member training exploring the role of insurance in blended finance.

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