Four insurers are—Sompo Japan Insurance, Mitsui Sumitomo Insurance, HDI Global and SCOR Business Solutions—are joining the programme for the first time.
Under the arrangement, participating insurers will cover a portion of losses arising if financial institutions fail to repay loans extended by ADB. The risk-sharing mechanism will allow ADB to free up capital for additional lending without increasing its balance sheet.
Manila:The Asian Development Bank (ADB) has expanded its credit insurance programme through a five-year agreement with leading global insurers, a move that could unlock up to $2.5 billion in additional lending across Asia and the Pacific.
The programme will enable ADB to increase financing for small businesses, microfinance, affordable housing and other underserved borrowers by sharing credit risks with private insurers.
Under the arrangement, participating insurers will cover a portion of losses arising if financial institutions fail to repay loans extended by ADB. The risk-sharing mechanism will allow ADB to free up capital for additional lending without increasing its balance sheet.
Four insurers—Sompo Japan Insurance, Mitsui Sumitomo Insurance, HDI Global and SCOR Business Solutions—are joining the programme for the first time.
“ADB is getting more money to where it is needed most: small businesses, lower-income families and communities that struggle to access finance,” said Masato Kanda, President of ADB. “By sharing risk with leading insurers, we can lend more through financial institutions, support more jobs and homes, and make our capital work harder for development.”
The expanded programme also highlights the growing role of the insurance industry in supporting development finance by providing additional risk capacity to multilateral institutions.
Masahiro Koike, President and Group CEO of Tokio Marine Group, said the agreement demonstrates how multilateral development banks and insurers can work together to manage risk responsibly while supporting sustainable and inclusive growth.
Mikio Okumura, Group CEO of SOMPO Group, said the company was honoured to expand its partnership with ADB and support its mission of assisting developing countries in the region.
Shinichiro Funabiki, Representative Director, President and CEO of MS&AD Insurance Group Holdings, said the group’s participation would bring underwriting expertise and risk capacity to the initiative and contribute to sustainable economic development and a more resilient future across Asia and the Pacific.