The objective of the new Partnership is to enable Emerging Markets and Developing Economies (EMDEs), especially low- and middle-income countries, to better prepare financially for shocks – strengthening resilience and unlocking investment and economic growth.
London, UK/ Antalya, Türkiye: The Insurance Development Forum (IDF) has announced that it has entered into an agreement with the UK Foreign, Commonwealth & Development Office (FCDO), for the creation of the Insurance Partnership for Development to be launched in 2027.
The objective of the new Partnership is to enable Emerging Markets and Developing Economies (EMDEs), especially low- and middle-income countries, to better prepare financially for shocks – strengthening resilience and unlocking investment and economic growth.
The insurance protection gap in EMDEs remains one of the most consequential market challenges in development finance — spanning sovereign and sub-sovereign disaster and climate risk in infrastructure investment, to the underinsurance of households, firms and productive assets in local markets.
Uninsured losses push sovereigns into slow, debt-financed post-disaster response; deter private investment in critical infrastructure and trap households and firms in cycles of vulnerability.
The new Insurance Partnership for Development will be structured around three related priorities:
-Scaling pre-arranged finance to ensure countries can have finance in place before disasters occur and can protect their development goals.
-Insurance to de-risk investment in order to increase the flow of capital into emerging and developing economies.
-Deepening domestic insurance markets so that low- and middle-income countries can close their protection gaps and build relationships with global markets.
-Work to deliver on these priorities will be co-led by the FCDO and the IDF. Relying on their convening power, IDF and FCDO will bring together relevant public and private partners – insurance and reinsurance industry, governments, regulators and international financial institutions – to tackle specific barriers that no single actor can resolve alone. It will combine research, technical expertise and convening to diagnose these barriers, identify solutions, and broker commitments to deliver joint public and private action.
Announcing the agreement to create the Insurance Partnership for Development during COP31 in Türkiye, UK Special Representative for Climate Rachel Kyte, said: “The scale of the [climate] problem cannot be met by the public sector alone. We need to work smarter, in partnership with the private sector, to deliver innovative solutions at scale. Which is why today I am pleased to announce a new UK Insurance Partnership for Development with the Insurance Development Forum. This is about scaling the tools that both protect countries’ hard won gains and also lay the foundations for the next stage of growth and development, in a changing climate.”
Michel Liès, Chairman, Zurich Insurance and Chair of the IDF Steering Committee, said: “This partnership builds on deep institutional foundations. UK Government, through the FCDO (formerly DFID), was instrumental in the establishment of the IDF and has long been an active participant in our Operating Committee. We welcome the opportunity to now work together with a shared strategy to deepen insurance penetration in low- and middle-income countries, where access to risk management expertise and solutions can truly deliver resilience outcomes.”
Other insurance industry leaders, members of the IDF Steering Committee, have also expressed their support of the new partnership.
Pamela Thomson-Hall, Chief Executive Officer International, WTW and Member of the IDF Steering Committee, added: “The IDF is a solid platform that effectively orchestrates delivery of insurance expertise and solutions to close protection gaps and drive resilience in EMDEs. It is trusted and supported globally by its members and partners in the re/insurance industry and across the public sector. We celebrate the agreement for this new partnership as a new avenue for delivery.”
Patrick Tiernan, Chief Executive, Lloyd’s of London; Member of the IDF Steering Committee, commented: “As a member of the IDF Steering Committee, I am delighted to see His Majesty’s Government place their trust in the IDF through the creation of this important new Insurance Partnership for Development. It represents a great opportunity for the industry to drive resilience while building sustainable commercial insurance markets. ”
The next, first phase of the partnership will see the design and operationalisation of specific governance and oversight arrangements and the development of a detailed programme of work in preparation for a formal operational launch in 2027.