Our investment
Description of the investment.
Description of the investment.
Equity fund investing in growth-stage companies operating within the climate risk insurance value chain in emerging markets
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
|
|
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How?
| Primary | Secondary |
|---|---|
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By backing companies to pilot new products and improving distribution of existing products, the fund will support the development of the climate insurance market by revealing information to other market actors and proving product viability to encourage replication. |
Climate risk insurance provides protection to people and businesses directly by increasing their resilience to adverse climate-driven impacts, increasing their ability to recover post impact and preventing them from needing to rely on informal protection mechanisms. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Households and SMEs |
Africa, South Asia, South-East Asia |
Poor and vulnerable households and SMEs (including farmers) earning less than $15/day and vulnerable to climate risks, living in areas with high exposure to climate hazards or with income dependent on an activity highly sensitive to climate hazards. |
How much?
| Scale | Depth/Duration |
|---|---|
|
InsuResilience Fund I reached 48.6 million total beneficiaries and 10.6 million direct clients. We expect Fund II to reach a similar scale of impact. |
Deep impact is expected for households and SMEs most vulnerable to climate shocks i.e., that are low-income and with limited assets and sources of income. Impact is expected to be significant and long-term if the fund is successful in catalysing the market. The duration of impact for customers will depend on coverage period, quantum and speed of payouts, and implementation of risk reduction measures. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Financial additionality: Our capital will help the fund reach optimum fund size. The fund will be financially additional given the overall nascency of climate insurance offerings across emerging markets and general lack of targeted pools of capital to specifically develop this offering. |
Risk
External RiskRisk linked to the complexity of factors needed to successfully catalyse the market for climate insurance, including supportive regulation and subsidy support for crop insurance. Alignment RiskRisk relates to fund strategy also targeting companies where climate insurance is not core business. Drop-Off RiskRisk linked to the lack of insurance policy renewals and/or whether the insurance product incentivizes the implementation of climate risk reduction measures. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We agreed on an ESAP focussed on updating internal policies in line with BII's Safeguarding requirements including safeguarding legal clauses between the fund and their investees. During the due diligence phase the fund made updates to their screening process by integrating customer protection risk factors into their systems in line with BII requirements.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- June 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D5235
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Africa, Asia, Latin America and the Caribbean
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Investment type :
- Fund
- Start date :
- March 2024
- Amount :
- $2.25m
- Currency of investment :
- USD
- Fund manager:
- Blue Orchard Finance SA
- Domicile
:
The company or investment fund’s place of incorporation.
- Luxembourg
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Partially qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Adaptation
- First published
Related investments made by BII into this fund:
| Investment name | Commitment | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Investment 02 | $12.75m | Africa, Asia, Latin America and the Caribbean | Financial services | March 2024 | Active |
Investments made by this fund into companies:
For further information about these companies, visit https://www.blueorchard.com/
| Investment name | Country | Region | Sector | Energy Type | Start date | Status |
|---|---|---|---|---|---|---|
| Axinan Pte Ltd | Southeast Asia, Vietnam | Rest of the World | Financial services | September 2024 | Active | |
| Fido Credit | Ghana | West Africa | Financial services | August 2024 | Active | |
| FinAGG | India | South Asia | Financial services | January 2024 | Active | |
| Newe Seguros S.A. | Brazil | Rest of the World | Financial services | December 2022 | Active | |
| Pula Advisors AG | Africa | Africa | Financial services | September 2023 | Active |
