The additional funding will support 10 to 15 more risk transfer projects for climate-vulnerable countries through to 2030
The UK Foreign, Commonwealth and Development Office has committed a further £3m to the Natural Disaster Fund Technical Assistance Facility.
The additional funding will allow the Natural Disaster Fund to support another round of 10 to 15 high-impact risk transfer projects affecting low and middle income countries through to 2030.
The announcement adds to news today that Lloyd’s re/insurer MS Amlin is committing $50m of capacity to the NDF as an additional private sector risk capacity provider, matching that already provided by Hannover Re.
The NDF is a blended risk transfer vehicle designed to mitigate climate-related challenges and build resilience for low and middle income countries.
It has been supported by the FCDO since 2018.
The expanded funding is intended to support wider engagement in the climate and disaster risk finance and insurance landscape.
Baroness Chapman, the UK’s minister for development, said: “The $662 million payout to Jamaica following Hurricane Melissa showed that pre-arranged finance can work and it can get there at speed, but it wasn’t enough.
“We can do much, much more. That’s why the UK is working with the multilateral development banks and the insurance industry to really scale these approaches.
“Today I am pleased to announce a new £3m contribution from the UK to the Natural Disaster Fund Technical Assistance Facility.
“Doing this will help develop insurance solutions in climate-vulnerable countries, which will drive investment and resilient growth where it’s really needed the most.”
The FCDO and Germany’s development bank KfW, acting on behalf of the German Federal Ministry for Economic Cooperation and Development, were founding public partners of the NDF in 2018 and 2020, respectively.
The fund was initially capitalised with around $70m of risk capacity.
Since 2020, the NDF has shared risks with Hannover Re.
The NDF is managed by Global Parametrics, a CelsiusPro Group subsidiary.
Public investment from the UK and German governments is blended with matching risk capacity from Hannover Re and MS Amlin.
Angus Kirk, CEO of Global Parametrics, said: “This additional funding from the FCDO is a tribute to the continued successes of the NDF.
“Climate and natural catastrophe risks have a disproportionate impact on low-and-middle-income countries.
“A significant lack of insurance coverage in these countries hinders their ability to recover and build resilience against catastrophic climate events and is a significant constraint to their economic growth and prosperity.
“Public-private partnerships, such as between the NDF, the FCDO and the KfW, play a crucial role in combining expertise and resources to help foster global knowledge sharing, innovation and long-term resilience-building efforts.”
CelsiusPro Group said its work focuses on supporting vulnerable communities in the Global South, where climate-related disasters are increasing in frequency and severity.
The group provides climate and natural catastrophe insurance using satellite data to support automatic payouts when natural catastrophes and extreme weather occur.
CelsiusPro acquired Global Parametrics in 2023, adding a parametric risk transfer provider focused on natural disaster resilience for climate-vulnerable communities.
The Natural Disaster Fund’s 2025 impact report has also been published and can be read here.
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