Introduction
Blue Marble has launched the Blue Marble Impact Reinsurance Facility, a global initiative designed to expand parametric climate insurance coverage for underserved communities across Latin America, Africa, and Asia.
Objective
The facility aims to address capacity constraints that have limited the growth of climate protection in regions vulnerable to weather-related risks.
Support and Structure
The facility is backed by Zurich Insurance with an AA rating and supported by a consortium of highly rated global reinsurers. It is structured to be agile and responsive, with capacity allocated to regions and sectors where it is most needed.
Coverage
The facility provides parametric reinsurance coverage for a range of climate-related risks, including excess rainfall, drought, extreme temperatures, hurricanes, cyclones, and storms. Parametric insurance triggers payouts based on predefined weather conditions, allowing for faster claims processing and financial relief after climate events.
Industry Trends
Over the past year, the reinsurance industry has increasingly embraced parametric insurance solutions to address complex and emerging risks. Notably, Swiss Re, in collaboration with reinsurance broker Guy Carpenter and data technology firm ICEYE, developed a parametric flood insurance policy offering up to US$1.1 million in emergency funding. This solution leverages high-resolution data from real-time satellite imagery, ground sensors, and social media.
Availability and Eligibility
The facility is available to financial institutions, governments, international organizations, and industries serving underserved communities. Targeted sectors include banks, agricultural traders, cooperatives, and the tourism industry.
It is also open to insurers and reinsurers seeking to expand their climate risk portfolios using parametric solutions, as well as brokers looking to secure additional capacity for clients developing climate risk protection programs. Eligibility criteria include a focus on underserved communities, the use of parametric triggers, and coverage specifically addressing climate risks.
Goal
The facility’s goal is to help close protection gaps by unlocking risk capital and enabling insurers and brokers to develop scalable climate insurance solutions.
