Abhoy CRRF

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Abhoy Logo Apply For Fund Abhoy - Climate Risk Resilience Fund (CRRF) is designed to encourage local and international (re)insurers to provide (re)insurance support to innovative climate risk insurance products/services, through strengthening the capacity of the local (re)insurers by increasing the depth of coverage capacity and fostering collaboration with local and international (re)insurers to venture into the microinsurance market in Bangladesh with climate-sensitive, client-centric microinsurance products in the agriculture sectors.

About Abhoy – Climate Risk Resilience Fund (CRRF)

Abhoy, launched in 2024 by the Bangladesh Microinsurance Market Development Programme (BMMDP), funded by the Embassy of Switzerland of Bangladesh and implemented by Swisscontact, has been designed to encourage reinsurance services in Bangladesh by increasing the depth of coverage capacity and fostering collaboration with local and international (re)insurers to venture into the microinsurance markets in Bangladesh with climate-sensitive microinsurance products in the agriculture, livestock, and fisheries sectors. 

Applicant Eligibility Criteria

Project Idea Eligibility Criteria

Abhoy will provide support for proven concepts that demonstrate scalability with reinsurance backing, as well as early-stage ideas for developing and launching climate risk insurance products that align with the following three dimensions: i) the project content (“what”), ii) the project approach (“how”), and iii) the project implementing organisation (“who”). Furthermore, insurance products are expected to emphasise the pro-poor principles for climate risk insurance, ensuring products meet the specific needs of impoverished and vulnerable communities.


Organisational Eligibility Criteria

The following types of businesses/organisations are eligible to apply for the fund:

Lead Consortium Partners:

  1. A consortium consisting of reinsurance and insurance providers registered either locally or internationally and authorised to offer (re)insurance facilities in Bangladesh. The insurance company has to lead the consortium.

Other Consortium Partners (Optional):

One or multiple following types of organisations can be consortium partners based on the insurance product distribution and delivery modality:

  1. Agriculture technology and E-Marketplace companies
  2. Innovative technology development companies, including early and growth stage start-ups
  3. Mobile Network Operators (MNOs), Telecommunication Value Added Service (TVAS) providers and Mobile Financial Service (MFS) providers
  4. Banks and Non-Banking Financial Institutions (NBFIs)
  5. Agri-input companies and Veterinary medicine/vaccine manufacturers
  6. Any other relevant organisations

Selection Process



Frequently Asked Questions (FAQ)

Criteria

What - Concepts must: increase resilience against extreme weather, be implemented in vulnerable areas, align with Fund goals, be based on needs assessments, lead to scalable and sustainable products.

How - Must be market-ready in 3 months, have a clear implementation plan, involve cooperation with relevant partners, include local stakeholder participation, and secure long-term financing or commitment.

Who - Partnerships between local and/or international insurance and reinsurance companies willing to underwrite innovative products for Bangladesh, with sufficient capacity, experience, and effective task sharing.


Fund Size: A (re)insurer will be eligible to receive support up to CHF 200,000 (~ BDT 25.6 million) as claim payout for each microinsurance product deployment.

Fund Duration: The duration of the fund support is up to 12 months for each microinsurance product deployment.


Abhoy only offers a stop-loss arrangement to (re)insurers but with specific conditions. These might include subsidizing a portion of the most extreme risks they face. The fund can be accessed through a "stop-loss" agreement. This means Abhoy will step in and pay claims directly to the (re)insurer if losses exceed a pre-set limit (usually a percentage of total claims) triggered by a major event.

Abhoy will provide support under ‘Stop-loss’ arrangement for (re)insurers under certain defined conditions (e.g., subsidisation at some of the extreme risks faced by insurers). A stop loss is an agreement for the Fund to pay claims directly to risk taker (re)insurance companies above a pre-agreed loss limit (expressed as a percentage of claims) in the event of a major shock. For Abhoy to control its risk exposure in a stop-loss arrangement, there is generally an agreement on the minimum premium rate to be charged by insurers. A (re)insurer under Abhoy support will be eligible to receive the facility as claim payout support of up to CHF 200,000 for conducting every successful product deployment.

Awardees will not receive any form of grant support/reimbursement for any cost categories, including the following:

  • Infrastructure investments: including weather stations, databases, underwriting platforms, mobile devices, and applications.
  • Product development costs: encompassing risk modelling, technical design, hazard mapping, pricing, data aggregation, and feasibility assessments.
  • Distribution and implementation expenses: such as channel development, training, awareness campaigns, coordination, and workshops.
  • Staff salaries: for employees working with insurance companies or partners on the project.
  • Consumer education and awareness costs: covering printing materials for financial literacy initiatives.