WTW announced that it will receive funding from the U.S. Agency for International Development (USAID) to develop a climate-resilient insurance solution that aims to unlock climate adaptation investment from the private sector. With USAID funding, WTW will design a pilot facility enabling the U.S. Development Finance Corporation (DFC) to offer a parametric insurance solution (Resilience Wrapper) that protects its direct loans to private enterprises from climate-related shocks. Following a triggering event (such as a cyclone, flood, or drought), the subsequent loan repayment will be covered by the insurance payout.

The Resilience Wrapper protects the borrowers? debt servicing obligations from the most impactful climate risks, ensuring that they can remain operational and avoid default following a shock event. In support of the President?s Emergency Plan for Adaptation and Resilience (PREPARE), the short-term catalytic funding was awarded through the USAID Climate Finance for Development Accelerator?s Adaptation Finance Window initiative.

The initiative utilises catalytic grant funding to de-risk the development and scaling of private sector-led climate adaptation approaches in frontier and emerging markets; it also includes an investment from the USAID Enterprises for Development, Growth, and Empowerment (EDGE) Fund.