Luxembourg-EIB Climate Finance Platform Supports BlueOrchard’s Climate Insurance Fund

This initiative aims to catalyze private and public sector investment into high-impact companies in emerging markets focused on climate change mitigation and adaptation projects.

The Luxembourg-EIB Climate Finance Platform (LCFP) will provide EUR 5 million for impact investor BlueOrchard's innovative USD 100 million climate insurance fund, backed by the government of Luxembourg. This initiative aims to catalyze private and public sector investment into high-impact companies in emerging markets focused on climate change mitigation and adaptation projects.

Key Statements:

Gilles Roth, Luxembourg Minister of Finance: “Protecting communities from the social and economic impact of climate change is crucial and can be enhanced through climate insurance and better understanding of the local impact of extreme and more uncertain weather. Luxembourg is pleased to support the new BlueOrchard Insurance resilience fund as part of our impact-focused climate cooperation with the European Investment Bank. This cooperation demonstrates how private and public finance, climate expertise, and climate insurance can mitigate the impact of climate change on vulnerable regions.”

Serge Wilmes, Luxembourg Minister of the Environment, Climate and Biodiversity: “Luxembourg is committed to climate action and is pleased to support improved access to climate insurance to effectively protect vulnerable communities in developing countries from losses and damages caused by climate change, including extreme weather events and slow onset events. Unlocking private and public investment is critical to tackling the climate crisis in developing countries. The new support for the BlueOrchard InsuResilience Fund II by the Luxembourg-EIB Climate Finance Platform will help vulnerable communities to be better prepared for climate risks and recover more quickly from climate disasters.”

Ambroise Fayolle, EIB Vice President: "The European Investment Bank is committed to fostering climate resilience around the world and our latest collaboration with BlueOrchard will help to address barriers holding back access to climate insurance in countries most impacted by climate change. Investing in adaptation and resilience is not only a necessity but a strategic imperative for the insurance industry in the face of climate change."

Philipp Mueller, CEO of BlueOrchard: "Our latest partnership with the EIB reflects our shared dedication to building resilience against the consequences of climate change and supporting the most vulnerable regions and households. The InsuResilience Investment Fund Private Equity II will drive high-impact equity investments to enable companies to harness technological innovation and improve access to affordable climate insurance solutions."

Project Impact and Goals:

The BlueOrchard managed InsuResilience Investment Fund Private Equity II (IIF II) aims to increase access to affordable insurance and expand climate insurance provision by investing in fast-growing companies that provide and support climate insurance, including insurance technology providers and specialist insurance companies and brokers. The fund will enhance climate resilience in Asia, Africa, and Latin America by providing coverage against unavoidable climate-related losses and damages in developing countries.

This initiative will help reduce financial risks and ensure rapid recovery following extreme weather events. By investing in climate insurance technology, the fund aims to empower insurers to better manage climate risks and protect vulnerable communities.

Funding and Contributions:

The project is part of a larger initiative that began in 2020, funded by a $45 million grant from the Asian Development Fund, with an additional $10 million approved in 2023. The Government of Australia contributed $20 million through the Australian Infrastructure Financing Facility for the Pacific, and the Government of Tonga contributed $8.5 million, bringing the total project value to $83.5 million.

Past Success and Future Goals:

The predecessor fund, the InsuResilience Investment Fund, has made nine investments across emerging markets, reaching nearly 58 million beneficiaries in underserved and economically vulnerable communities to mitigate the effects of climate change. The objective is to reach 70-110 million beneficiaries by 2025.

The Luxembourg-EIB Climate Finance Platform's support for BlueOrchard’s climate insurance fund highlights a significant step towards enhancing climate resilience in vulnerable regions. This cooperation underscores the importance of integrating private and public finance, climate expertise, and innovative insurance solutions to mitigate the impacts of climate change on vulnerable communities worldwide.