Development of resilience-linked parametric insurance coverage for infrastructure concessions against multiple hazards

Grid Advisors partnered with Guy Carpenter Inc, a global infrastructure insurance provider, to design a parametric coverage scheme of infrastructure assets against multiple hazards, including acute (i.e., natural disasters) and chronic stresses (induced by climate change triggered stressors). This innovative ‘insurance-type’ of financing provides the concessionaire (i.e., private sector) with transparent, affordable, and quick access to economic resources.
By being resilience-linked, the product incentivizes the mobilization of capital by the concessionaire (i.e., private sector) by providing motives for investments with climate co-benefits to simultaneously address the chronic and acute threats.