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Possible actions to establish Public Private Insurance Partnerships (PPIP)
| Stakeholder | Starting point | Advanced actions |
|---|---|---|
| Governments | • Develop national risk financing strategies to anchor the development of risk financing and insurance, including risk layering of financial instruments. • Directly support or facilitate data generation and sharing between public and private sector. • Champion PPIPs to demonstrate public support and provide stable legal and institutional foundations for such programs. • Enhance social safety net programs to increase scalability, including through beneficiary registries, data systems, and linking to digital payments. | • Provide financial support to help increase take-up of insurance and increase risk taking capacity of (re)insurance markets, while paying attention not to provide moral hazard for public financial support. This could be in the form of partial premium subsidies; or providing guarantees as insurer of first or last resort. • Build shock responsive social protection systems and other distribution mechanisms, which can be backed with insurance to ensure that public disaster support is effective and protecting the most vulnerable. |
| Supervisors | • Inform policymakers on areas where insurance is unaffordable because of the level of risk (or the limited financial capacity of consumers) to help guide effective interventions in risk reduction and/or financial inclusion. | • Provide advice on areas related to disaster risk financing instruments other than insurance (e.g., national or dedicated disaster risk funds, catastrophe risk insurance programs or emergency funds) where insurers are not able to provide adequate insurance coverage. |
| (Re)insurers (and modelers/ brokers) | • Contribute their technical capacity in underwriting, risk assessment, and claims management, as well as their financial capacity in risk-bearing. In addition, the industry has a role to play in revealing the cost of risk (i.e., through risk-based insurance premiums), incentivizing proactive risk management and driving risk management standards through society. | |
| International Organisations / Multilateral Development Banks | • Contribute to the development of sound and sustainable catastrophe risk insurance markets through the provision of technical assistance, policy advice, capacity building, funding, and policy guidance to the public and private stakeholders. Such support is usually embedded in a broader agenda, including financial inclusion, the development of adaptive social protection systems, and the development of a resilient financial sector. | |
Source: IAIS-WBG (2025): G20 Sustainable Finance Working Group input paper (pages 27-29)