Insurance Development Forum develops nat cat products for Medellín, Colombia

The Insurance Development Forum (IDF), the public-private partnership (PPP) led by the insurance industry, has launched a programme to develop enhanced protection for the city of Medellín in Colombia.

IDF is developing a parametric flood and earthquake product and indemnity landslide protection for Colombia’s disaster risk management plans.

The IDF, represented by its members Hannover Re and Willis Towers Watson, and Global Communities, an international humanitarian assistance and sustainable development organisation, formed the PPP to promote resilience in communities susceptible to natural catastrophes.

It is hoped that Medellín will serve as a role model for other Colombian cities, encouraging the development of similar climate and natural disaster risk insurance products in the country.

The Medellín project is part of the Tripartite Agreement launched in 2019 between the German Federal Ministry for Economic Cooperation and Development (BMZ), the IDF and the United Nations Development Programme (UNDP) during the United Nations Secretary General’s Climate Action Summit. The InsuResilience Solutions Fund (ISF), funded by KfW Development Bank on behalf of BMZ, is the BMZ’s programme to co-fund the implementation of the Tripartite agreement.

Once the product is brought to market, Medellín’s city government will be the policyholder via its Fund for Disaster Risk and Emergencies Management, which provides funding for emergencies, rehabilitation and reconstruction in the city. IDF said the coverage will benefit local affected communities, providing food, cash disbursements and basic infrastructure repair at times of crisis.

Ekhosuehi Iyahen, secretary general at IDF, said: “The IDF is committed to playing an influential role in supporting the development of much needed practical solutions. The PPPs which see insurance professionals working closely with public officials to bring their risk management expertise to bear enables the delivery of solutions at scale for those who are most vulnerable.”

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