Four leading development insurance parametric risk pools – Pacific Catastrophe Risk Insurance Company (PCRIC), African Risk Capabilities (ARC), Caribbean Catastrophe Risk Insurance Fund (CCRIF SPC) and South-East Asian Catastrophe Risk Insurance Fund (SEADRIF) – have agreed to study the feasibility of a shared risk financing and reinsurance platform aimed at strengthening climate risk protection in their member countries.
The discussion took place during a week-long conference from February 23 to 27 at the Rockefeller Foundation Bellagio Center in Italy.
Supported by the Rockefeller Foundation, the conference brought together four regional sovereign risk pools and representatives from development finance institutions and the re/insurance industry to consider how to deepen and expand collaboration.
During the conference, participants viewed this moment as a turning point in the development of insurance and said that the industry is ready to expand and that coordinated solutions between risk pools may represent the next stage of reality. This week is described as constructive and focused, providing space for open and uninterrupted exchanges on future directions for climate risk protection.
A central theme of the dialogue was how to move away from stand-alone, program-based initiatives towards more structured and durable institutional models that can co-exist with mainstream development finance.
Contributors identify several constraints that currently limit growth: insurance remains underappreciated in climate finance, conservation targets and measurement frameworks are limited, capital remains fragmented, reinsurance arrangements are often short-term, pricing can fluctuate significantly, and risk financing is not always fully integrated into fiscal planning. It is widely agreed that achieving scale will require redesigning capital structures, strengthening coordination mechanisms and sustained political support.
PCRIC said the joint platform could build on existing cooperation between the pools and aim to reduce reinsurance costs and expand insurance coverage to more member states. By harmonizing capital approaches, technical capabilities and market participation, the four institutions intend to assess whether a more unified structure can lead to greater stability and efficiency.
Participants also considered how catalytic public funding could work more efficiently alongside private reinsurance markets, and how regional funding pools could be more closely aligned, including through possible pooled reinsurance arrangements, to provide more consistent risk tolerance over time.
As a result of the meeting, the four capital pools agreed to enter a joint design phase to explore options for a shared risk financing framework. This phase will assess how coordinated capital, collective reinsurance structures and shared technology systems work at regional and international levels. While still in its early stages, the agencies have confirmed their shared intent to move forward with design work.
PCRIC added that its participation ensures Pacific perspectives are represented in discussions and reaffirms its commitment to advancing climate and disaster risk finance in the region. The organization also mentioned its disaster risk finance education initiative and welcomed opportunities to strengthen collaboration with other finance pools and development partners.
The four institutions jointly expressed their gratitude to development finance leaders, industry experts and partners who contributed to discussing and advancing this concept.
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