Ibisa, a Luxembourg-based climate insurtech startup, and VisionFund, a financial inclusion services provider for vulnerable communities, have launched ClimaCash+, a suite of innovative parametric climate insurance products aimed at helping these communities respond to extreme weather events. on Tuesday 10 December 2024, the collaboration seeks to provide rapid financial support in the aftermath of climate-related disasters such as floods, droughts, heatwaves and heavy rainfall, with payouts triggered by objective weather indicators. This initiative responds to the growing impact of climate change, which made 2023 the warmest year globally since 1850, creating unprecedented challenges for communities worldwide.
The press release stated that the ClimaCash+ product suite offers quick, data-driven assistance triggered by specific weather conditions, ensuring communities receive support even before a disaster strikes. Drawing inspiration from the HospiCash model used in health insurance, ClimaCash+ provides a streamlined and transparent claims process. This approach aims to close the financial protection gap for vulnerable individuals and businesses who often face barriers to traditional insurance, such as location, income or lack of accessible services.
The suite includes four key products: FloodCash, HeatCash, RainCash and DroughtCash. Each is designed to respond to different types of climate risks. For example, FloodCash supports businesses and communities impacted by flooding, while HeatCash provides assistance during extreme heatwaves. RainCash is aimed at those enduring heavy rainfall and DroughtCash offers financial relief during prolonged dry periods. The parametric nature of these products means that claims are automatically triggered by specific, objective weather indicators, such as rainfall intensity or temperature thresholds, ensuring fast and transparent payouts.
The ClimaCash+ programme was first introduced in Kenya, where it serves as a model for expanding into other regions with similar climate vulnerabilities. The collaboration with local partners in Kenya and other countries is intended to ensure that the programme remains effective and sustainable, meeting the unique needs of communities most at risk from climate change. By leveraging satellite technology and data-driven weather patterns, Ibisa and VisionFund aim to offer scalable, accessible solutions to help communities better withstand the financial impacts of climate disasters.
María Mateo, CEO of Ibisa, stated in the announcement, “Through our partnership with VisionFund, we are bridging the protection gap and improving the financial stability of vulnerable communities. ClimaCash+ has the potential to revolutionise climate insurance by offering timely and relevant support to those who need it most.”
Solène Favre, global insurance director at VisionFund, emphasised the broader impact of the programme, saying, “This is more than just insurance; it’s about building resilience and empowering vulnerable communities to withstand the changing climate. By adapting HospiCash to the climate context, we are helping to safeguard livelihoods and secure a sustainable future.”