The Insurance Development Forum (IDF) has issued a call to action for the sector to invest in resilient and sustainable infrastructure in climate-vulnerable emerging and developing economies. The group has designed a blueprint to facilitate insurance sector investments into small to mid-size commercial infrastructure projects in communities most at risk from climate change and other natural disasters, working alongside BlackRock to put it into action. The IDF’s aim is to provide a replicable, scalable solution that can help fill an estimated US$1.3 trillion funding gap. Investments will be made through senior and mezzanine secured debt with a credit profile compatible with the requirements of the global insurance industry. The initiative highlights the need for insurers to partner with multilateral development finance institutions and other credit enhancement providers to create investment structures that meet their credit quality requirements, IDF said. “With developing nations facing a significant shortfall in the capital they need to build resiliency and to support a low-carbon transition in their economies, we see innovative solutions – such as public-private partnerships and blended finance structures – as important tools for mobilising greater private capital into these markets,” said Charles Hatami, Global Head of BlackRock’s Financial and Strategic Investor Group.
