The four leading development insurer parametric risk pools — Pacific Catastrophe Risk Insurance Company (PCRIC), African Risk Capacity (ARC), Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), and Southeast Asia Disaster Risk Insurance Facility (SEADRIF) — have agreed to examine the feasibility of a shared risk finance and reinsurance platform designed to strengthen climate risk protection for their member states.
The discussions took place during a week of meetings at the The Rockefeller Foundation Bellagio Center in Italy between 23 and 27 February.
Convened with support from The Rockefeller Foundation, the gathering brought together the four regional sovereign risk pools alongside representatives from development finance institutions and the re/insurance sector to consider how cooperation could be deepened and scaled.
During the session, participants framed the moment as a turning point for development insurance, expressing the view that the sector is positioned for expansion and that a coordinated solution among the risk pools could represent a practical next phase. The week was described as constructive and concentrated, providing space for open and uninterrupted exchanges on the future direction of climate risk protection.
A central theme of the dialogue was how to move from a landscape of separate, programme-based initiatives towards a more structured and enduring institutional model capable of standing alongside mainstream development finance.
Contributors identified several constraints that currently limit growth: insurance remains under-recognised within climate finance, protection targets and measurement frameworks are limited, capital remains fragmented, reinsurance arrangements are typically short term, pricing can fluctuate significantly, and risk financing is not always fully embedded within fiscal planning. There was broad agreement that achieving scale will require redesigned capital structures, stronger coordination mechanisms and sustained political backing.
PCRIC stated that a joint platform could build on the collaboration that already exists among the pools, with the aim of lowering reinsurance costs and extending coverage to more member countries. By coordinating capital approaches, technical capabilities and market engagement, the four institutions intend to assess whether a more unified structure could deliver greater stability and efficiency.
Participants also considered how catalytic public funding might operate more effectively alongside private reinsurance markets, and how closer alignment between regional pools, including through a possible joint reinsurance arrangement, could provide more consistent risk capacity over time.
As an outcome of the meetings, the four 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 technical systems might function across regions and at international level. While still at an early point, the institutions confirmed a common intention to take the design work forward.
PCRIC added that its involvement ensured Pacific perspectives were represented in the discussions and reiterated its commitment to advancing climate and disaster risk financing in the region. The organisation also referenced its disaster risk finance education initiatives and welcomed the opportunity to strengthen collaboration with fellow pools and development partners.
Collectively, the four institutions expressed appreciation to the development finance leaders, industry specialists and partners who contributed to shaping the discussions and advancing the concept.
