WASHINGTON, USA – IDB Invest has launched a groundbreaking initiative aimed at mobilising up to $500 million in private sector investments to support resilience across Latin America and the Caribbean.
The pioneering Thematic Climate Adaptation Insurance Program will be implemented in phases through 2026 and also seeks to expand adaptation transactions and scale up financing for resilience solutions in the region.
The program is structured around two complementary components.
The first component aims to mobilise capital by enabling insurance companies to participate in IDB Invest’s thematic climate adaptation portfolio through the use of credit insurance. This mechanism allows IDB Invest’s to manage its exposures and increase its lending capacity for adaptation by freeing up capital.
The second component focuses on technical knowledge transfer through knowledge sharing sessions on IDB Invest’s approach, and tools and lessons learned in resilience. These sessions aim to strengthen institutional capacity, clarify methodologies and help insurers align with emerging standards and best practices in risk and resilience.
“With this program, we are creating a new pathway for insurers to actively participate in building resilience across Latin America and the Caribbean. Beyond scaling up investments, we are strengthening the market’s ability to respond to climate challenges, and advancing private sector solutions that deliver tangible outcomes,” said chief products officer at IDB Invest Fabio Fagundes.
By bridging both financing and knowledge gaps, this initiative seeks to overcome traditional barriers that have limited investment in adaptation in emerging markets, offering a unique opportunity for insurers to participate while building technical expertise.
The Program started with the first knowledge-sharing session, engaging several participants from leading global insurance companies. Designed for continuous replenishment, the Program will evolve alongside IDB Invest’s adaptation portfolio, ensuring sustained mobilisation of private capital towards building resilience in the region.
