A new partnership between the public-sector-focused Bridgetown Initiative and the private-sector-led Insurance Development Forum (IDF) seeks to close critical gaps in how countries prepare for and respond to climate disasters, with a focus on integrating insurance into disaster financing models in developing economies.
The collaboration was announced at the IDF Summit 2025. It aims to incorporate insurance more systematically into the international financial architecture (IFA) to support Emerging Markets and Developing Economies (EMDEs) facing growing exposure to climate-related and natural disaster risks.
According to the partners, economic losses from such events are up to 10 times higher in the least developed countries than in high-income countries when measured as a share of gross domestic product (GDP).
As a first step, the two organisations will publish a joint paper during London Climate Action Week. The document will outline policy recommendations for governments, multilateral development banks (MDBs), bilateral donors, and regulators. The focus will be on defining roles and identifying areas where insurance can serve as a tool for managing financial risks in development and climate adaptation strategies.
The Bridgetown Initiative will engage with the COP30 Presidency and other multilateral platforms to support the inclusion of insurance in global financial reform efforts, particularly those that relate to climate-vulnerable nations and donor governments.
At the same time, the IDF will lead technical design and implementation of insurance solutions in selected countries, with the aim of demonstrating the approach outlined in the paper.
According to IDF secretary general Ekhosuehi Iyahen, the collaboration builds on the Bridgetown Initiative’s familiarity with the challenges faced by vulnerable nations and the IDF’s insurance expertise and project experience across developing markets.
“The upcoming paper will provide a clear pathway to embed insurance within development finance strategies and support countries in strengthening their long-term resilience,” said Iyahen.
Meanwhile, Bridgetown Initiative director and special adviser on climate resilience in the Barbados Prime Minister’s Office, Pepukaye Bardouille, said the partnership aims to develop scalable and cost-effective tools to address ongoing climate risks.
“This partnership with the IDF brings together tremendous expertise to co-create practical, scalable and affordable solutions that support resilience-building. We are excited to present a more holistic view of IFA reform through this partnership,” said Bardouille.
Funding for the work is supported by the Government of Denmark through the Danish Ministry of Foreign Affairs and the Quadrature Climate Foundation, which backs initiatives focused on climate resilience and financial risk mitigation.
Can insurance play a more central role in disaster financing for vulnerable economies? Share your thoughts in the comments.
