The 2022 Lab instrument Climate Insurance Linked Resilient Infrastructure Financing (CILRIF) was recently featured in the Financial Times on its novel approach to helping cities cover their costs of hurricanes, fires, and other climate-related disasters.
CILRIF is offers long-term (>10 years) municipal climate insurance, with known premiums dependent on municipal resiliency measures and a unique linked financial product to access capital for climate resilience. The instrument was developed by the UN Capital Development Fund (UNCDF).
“Hopefully this will open a new market for insurers . . . without compromising their profitability,” said Abhisheik Dhawan, sustainable finance and partnerships specialist at UNCDF, on CILRIF’s potential.