The Luxembourg-EIB Climate Finance Platform (LCFP) will provide €5m for impact investor BlueOrchard’s innovative $100m climate insurance fund, with the backing of the Luxembourg government.
Currently, many communities and economic activities in climate change-affected countries remain uninsured, highlighting the need for greater industry involvement. Seeking to catalyse private and public sector investment into high-impact companies in emerging markets involved in insuring climate change mitigation and adaptation projects, the LCFP has decided to provide €5m to BlueOrchard, a global impact investment manager.
The BlueOrchard managed InsuResilience Investment Fund Private Equity II (IIF II) will contribute to increasing access to affordable insurance and expanding the provision of climate insurance by providing equity investments in fast-growing companies that provide and support climate insurance, including insurance technology providers and specialist insurance companies and brokers.
“Luxembourg is pleased to support the new BlueOrchard Insurance resilience fund as part of our impact-focused climate cooperation with the European Investment Bank.”
Gilles Roth, minister of finance.
58 million beneficiaries
“Our latest partnership with the EIB reflects our shared dedication to building resilience against the consequences of climate change and supporting the most vulnerable regions and households. The InsuResilience Investment Fund Private Equity II will drive high-impact equity investments to enable companies to harness technological innovation and improve access to affordable climate insurance solutions,” said Philipp Mueller, CEO of BlueOrchard.
The cooperation between the EIB, BlueOrchard, and the Government of Luxembourg follows the successful deployment of the predecessor strategy, the InsuResilience Investment Fund. To date, the predecessor fund has made 9 investments across emerging markets, reaching nearly 58 million beneficiaries in underserved and economically vulnerable communities to mitigate the effects of climate change (as of Q3 2023) with the objective to reach 70-110 million beneficiaries by 2025.
