ICMIF member IBISA has partnered with VisionFund, the financial empowerment and livelihood arm of World Vision, to launch “ClimaCash+,” a groundbreaking suite of parametric climate insurance products designed to empower communities of climate adversity to respond quickly even before a disaster happens.
Last year, 2023, has been confirmed as the warmest year since 1850, bringing unprecedented challenges for communities worldwide due to climate change. From devastating floods to terrible heatwaves, extreme weather events are causing significant damage, leaving vulnerable individuals and businesses without the financial support needed for relief. In response to this urgent crisis, IBISA and VisionFund have launched the “ClimaCash+” range of parametric climate insurance products.
Inspired by the concept of HospiCash insurance, a well-known model in the health insurance, IBISA says ClimaCash+ offers a simple, fast, and relevant lifeline to communities impacted by climate events. With rapid payouts triggered by specific weather conditions, IBISA believes this innovative solution is set to change the way financial resilience is enabled.
This innovative programme was recently launched in Kenya and will serve as a model for expanding to other geographical areas facing similar climate challenges. IBISA and VisionFund are collaborating with local partners to ensure the initiative’s effectiveness and sustainability.
ClimaCash+ : a suite of solutions for a changing world
Launching the the ClimaCash+ solutions suite, IBISA said they offer a groundbreaking new category of climate insurance designed to assist when it is needed most. The suite includes:
- FloodCash: Rapid cash assistance for communities and businesses impacted by flooding.
- HeatCash: immediate support during extreme heatwaves that threaten livelihoods.
- RainCash: assistance designed for those enduring the impacts of intense rainfall.
- DroughtCash: cash assistance for those impacted by extended periods of drought.
Each ClimaCash+ product leverages parametric triggers, such as the objective and data-driven indicators, that activate claims as soon as certain conditions are met. This ensures a swift and transparent process, providing timely financial assistance to help communities and businesses address immediate challenges and begin recovery more effectively.
ClimaCash+ : born from a global powerful partnership for change
At the core of this launch is a partnership between IBISA, a leading global climate insurtech, and VisionFund, the financial empowerment and livelihood arm of World Vision. Together, they aim to improve the financial stability of vulnerable communities facing climate risks. This collaboration boosts their reach and impact, ensuring that ClimaCash+ products are distributed through local channels, making it easier for those in need to access support. By combining innovative financial solutions with climate resilience strategies, VisionFund and IBISA are taking a significant step towards closing the protection gap for those most at risk from climate change.
“At IBISA, our vision is to make climate insurance mainstream, bridging the protection gap and enhancing resilience in underserved markets,” explained María Mateo, CEO of IBISA. “This new category of products is designed to simplify and expand access to protection for vulnerable communities. Our partnership with VisionFund highlights our shared commitment to innovation, and we believe ClimaCash+ has the potential to be a true game-changer in the realm of climate insurance.”
“With our innovative climate insurance initiative, we’re not just protecting livelihoods; we’re cultivating resilience. By adapting hospicash to climate challenges, we’re empowering vulnerable communities to weather the storms of change and grow stronger. This is more than insurance—it’s an investment in a sustainable future” added Solène Favre, Global Insurance Director at VisionFund.
