Lloyd’s of London and UNCDF extend arms to climate-vulnerable nations

The partnership will also aim to replicate this model in other regions, including Asia and parts of Africa.

Lloyd's, a global insurance and reinsurance marketplace, acting on behalf of the Sustainable Markets Initiative's Insurance Task Force, announced a partnership with the United Nations Capital Development Fund (UNCDF) to expand access to insurance for climate-vulnerable nations.

The partnership will involve close collaboration to design innovative insurance products that provide financial protection against climate-related shocks in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).

Initially focusing on developing and scaling these solutions across Fiji and the Pacific Islands, the partnership will also aim to replicate this model in other regions, including Asia and parts of Africa.

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UNCDF and Lloyd's will work together to promote Public-Private Partnerships in these regions with the objective of reducing the protection gap. 

Additionally, they will ensure that knowledge gained from these initiatives is shared with key national, regional, and international stakeholders, including policymaking think tanks, United Nations agencies, and academic research institutions.

Lloyd's, as Chair of the Insurance Task Force, will collaborate closely with UNCDF to identify and address potential policy challenges that may hinder the development of climate risk insurance in emerging markets. 

They will also promote best practices for policymakers in SID and LDC regions to effectively mitigate climate catastrophe risks.