IDF rolls out plan for resilient infrastructure

Its mission is to utilise insurance and risk management capabilities for climate resilience.

The Insurance Development Forum (IDF) unveiled plans to facilitate investments in infrastructure, aiming to bolster the resilience of vulnerable communities in emerging economies against climate change and natural disasters.

Over the past year, the IDF Infrastructure Task Force has crafted a blueprint to catalyse insurance sector investments in an underserved segment of the infrastructure market. 

“The Insurance Development Forum is today issuing an unprecedented call to action to the global re/insurance sector to support the investment in resilient and sustainable infrastructure in vulnerable communities. COP28 highlighted the urgent need to scale up the financing for resilient infrastructure,” Michel Liès, chair of the IDF Steering Committee said in a press release.

“The blueprint was designed by insurers with our specific investment needs in mind. We see this as essential for companies’ and countries’ long-term sustainability, and the effective mobilisation of insurance industry capital towards a much-underserved segment of the infrastructure market in emerging and developing countries.” Liès added.

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This blueprint, developed by leading IDF insurance company members, aligns with the IDF's mission to utilise insurance and risk management capabilities for climate resilience.

The blueprint focuses on mobilising insurance industry investments in smaller to mid-size commercial infrastructure projects in developing markets, including renewable energy, water, transportation, and social infrastructure. 

It emphasises partnering with development finance institutions (DFIs) to create innovative investment structures meeting insurers' credit quality requirements.

In collaboration with BlackRock, the IDF aims to implement the blueprint, leveraging BlackRock's expertise in infrastructure investment and blended finance. 

This initiative has garnered support from IDF industry members and seeks to address the urgent need for resilient infrastructure financing highlighted at COP28.