IFC and QBE launch resilience initiative targeting Asia-Pac protection gap

The International Finance Corporation (IFC) and QBE Asia have signed a new agreement aimed at tackling the region’s growing climate risk and persistent property insurance gap through a focus on resilient construction.

The partnership centres on the Building Resilience Index (BRI), a web-based hazard mapping and resilience assessment framework developed by IFC to evaluate climate risks for real-estate projects and portfolios.

QBE becomes the first insurer to join the BRI programme since its pilot launch in 2021.

In a statement issued on 12 June, the organisations said the collaboration would expand the BRI’s reach beyond developers to include homebuyers, financial institutions and governments. It also aims to support the development of new insurance products rewarding resilience in building design and construction – particularly in climate-vulnerable regions such as the Pacific.

Katia Daude Gonçalves, country manager for Singapore and Brunei at IFC, said the growing scale of climate-related hazards was putting “unprecedented pressure on buildings and communities across Asia and the Pacific”.

“Together with QBE, we’re determined to help close the property insurance gap while promoting resilient development across the region,” she said.

As part of the agreement, IFC and QBE will lead joint awareness and capacity-building initiatives, including training sessions for local and international stakeholders in Hong Kong SAR, Malaysia, Singapore and Vietnam.

The two organisations will also work on product innovation in partnership with third parties, including insurance solutions offering favourable terms for buildings with high BRI scores.

These may include broader coverage, sustainable pricing, faster claims processing, and parametric insurance tied to predefined hazard triggers.

“A key feature of this partnership is the development of innovative insurance solutions for building owners and operators,” said Ronak Shah, chief executive officer of wholesale markets Asia at QBE.

“Rewarding building resilience through favorable underwriting terms and conditions for properties with high BRI ratings, for example, is one such solution. Another is to improve risk modelling by combining our data and technology. By both incentivizing resilience and leveraging our technological capabilities, not only will we help build more resilience overall; we will also improve our own risk-taking capabilities as well.”

The partners said they would explore technical integration between BRI and QBE’s own risk-modelling platforms, with a view to enhancing the accuracy and relevance of climate-related assessments.

IFC warned that as more assets become economically unattractive or uninsurable due to climate risks, the knock-on effects could disrupt financial systems and further expose vulnerable communities in low-insurance penetration markets.

The BRI programme, initially piloted in the Philippines, has since been rolled out across East Asia, the Pacific, Latin America, the Caribbean and South Asia. It is backed by the Australian Government, with seed funding from the Netherlands and the Rockefeller Foundation.