The Insurance Development Forum (IDF) and the Bridgetown Initiative have announced a partnership to deepen the role of insurance within the International Financial Architecture (IFA). Their goal is to help emerging market and developing economies (EMDEs) withstand climate-related disasters and unlock investment for growth.
Background: Urgent Need for Climate Resilience
Disproportionate impacts from storms, floods, and droughts can derail development plans in the world’s least developed countries. The Bridgetown Initiative advocates transforming the IFA to better serve climate-vulnerable nations. The IDF stressed that boosting economic and physical resilience is essential not only to survive disasters but also to spur investment and long-term development.
Insurance as a Core Enabler of Climate Risk Response
Under the new partnership, insurance will be positioned as a “core enabler of the global response to climate and other natural disaster risks.” The organizations plan to leverage the insurance industry’s expertise and capacity to strengthen resilience in vulnerable regions.
Launch of Action-Oriented Paper
The first step is releasing a joint action paper during London Climate Action Week. This report will offer specific recommendations for both public and private sectors to enhance insurance’s role in climate protection. It highlights the need for close collaboration among insurers, governments in EMDEs, multilateral development banks (MDBs), bilateral donors, and regulators.
Implementation Through Political and Technical Work
After publication, the IDF and Bridgetown Initiative will move to implement these recommendations. Their plans include:
Political Engagement: The Bridgetown Initiative will push for insurance inclusion at global forums, such as the COP30 Presidency, ensuring that IFA reform discussions address the needs of climate-vulnerable countries.
Technical Design and Deployment: The IDF will lead the development and rollout of insurance solutions in target countries. It will also represent the industry in high-level policy discussions and advocate for insurance integration in EMDEs’ financing strategies.
Funding and Support
The Danish Ministry of Foreign Affairs supported the report’s preparation. The Quadrature Climate Foundation, a philanthropic fund dedicated to equitable, low-carbon futures, provided additional funding for the collaboration.
Leadership Perspectives
Ekhosuehi Iyahen, Secretary General of the Insurance Development Forum, stated:
“This collaboration perfectly combines the Bridgetown Initiative’s deep understanding of fragile states with IDF’s technical insurance expertise and global reach. The upcoming report will offer a clear path to embed insurance into development financing strategies and build long-term resilience.”
Katherine Stodulka, Program Director at the Quadrature Climate Foundation, added:
“The new climate reality demands bold leadership and effective tools to enhance resilience. We support the IDF–Bridgetown partnership because catalytic collaborations across the financial system are crucial for helping the most affected communities manage climate risks.”
Looking Ahead
With this partnership, the IDF and Bridgetown Initiative aim to move from theory to practice. Their work will ensure that insurance solutions become an integral part of global financial reforms, helping EMDEs better manage climate-related threats and secure sustainable growth.
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