Innovative Insurance Solutions for Agriculture and Nature Awarded at UNDP's 2024 Challenge in Mexico City

Mexico City, November 19, 2024 – The United Nations Development Programme’s Insurance and Risk Finance Facility (IRFF) and Biodiversity Finance Initiative (BIOFIN) hosted the Pitch Day and award ceremony for the 2024 Insurance Innovation Challenge for Agriculture and Nature. This event showcased six insurance solutions developed by the selected teams, focusing on agricultural sustainability and nature protection. From these, two winning initiatives were selected.

The lead-up to Pitch Day was both rigorous and enriching. Following an open call that attracted proposals from companies, financial institutions, and civil society organizations, six solutions were shortlisted. Three solutions were in the agriculture category, developed by Luxelare, Semilla Segura (represented by Mariana Pérez Arredondo and Óscar E. Garza López Portillo), and AON Mexico and ASEPROAN. While the other three nature-focused solutions were developed by SUPRA, TVNC and Futuro Femenino, BANFIN Ecosocial and Dextera, and Seguros Mendoza and Seguros SAP.

More than 80 Innovation Challenge participants have received training on design thinking for inclusive and innovative insurance development, global insurance solutions for biodiversity protection, the Biodiversity Capital Index developed by Mexico’s National Commission for Biodiversity (CONABIO), and the Kunming-Montreal Global Biodiversity Framework.

The six finalist teams underwent an incubation phase, where they benefited from 10 hours of specialized mentorship with experts in innovation, parametric insurance, and business models in the insurance sector. This guidance helped them refine their proposals before presenting them to a Technical Evaluation Committee during the final event. Mentors included Belén Gómez, Advisor to the Executive Presidency at Rio Uruguay Seguros; Mariana González Araujo, Environmental Professor at the Faculty of Global Studies, Universidad Anáhuac; Santiago del Castillo, CEO of XSISí and Treasurer of the Insurtech Association of Mexico; Edgar Aguilar, Global Technical Lead for Agricultural Insurance at UNDP’s Insurance and Risk Finance Facility ; and Siegfried King, Regional Leader for Parametric Insurance at Marsh McLennan.

On the Pitch Day, Marsh McLennan participated as a strategic partner in the insurance sector for the Innovation Challenge. The six projects presented their proposals and were evaluated by the Technical Committee which included Viridiana Sierra, Commercial Manager at Howden; Monserrat López, Credit Analyst at El Buen Socio; Fernando Secaira, Coastal Climate Risk and Resilience Specialist at The Nature Conservancy; Miguel Á. de la Garza, Head of Finance, Risk, and Actuarial Function at AMIS; and Axel Morales Victorio, Business Development Expert in the Insurance Sector.

After a deliberation process, two projects stood out for their innovation and transformative approach and were announced as winners by Daniel Vargas, UNDP Mexico’s Deputy Resident Representative. Over the coming months, these two winning solutions will receive financial and technical support from UNDP Mexico to bring their products to market.

In the agriculture category, Luxelare presented a multi-risk parametric insurance solution that leverages satellite and meteorological data to support small-scale farmers. This scalable digital solution not only mitigates climate risks but also promotes regenerative agricultural practices and offers tailored technical assistance.

In the nature category, Banfin Ecosocial and Dextera excelled with a proposal to create a Habitat Protection and Biodiversity Fund. This mechanism will finance the conservation and restoration of priority ecosystems, implement projects to protect endangered key species, and issue biodiversity bonds—an innovative tool to attract investments and ensure the sustainability of their initiatives.

“For UNDP, promoting innovation in the insurance and biodiversity protection sectors is not just an activity; it is a commitment to sustainable development and the resilience of the most vulnerable communities and the ecosystems essential for our survival. Count on us as an ally on this journey” Daniel Vargas, UNDP Mexico’s Deputy Resident Representative The event, aligned with UNDP’s efforts to achieve the Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework, underscored the importance of these solutions in transforming insurance markets and addressing global challenges such as climate change and biodiversity loss. Closing the event, the organizing teams celebrated the participants' commitment and their contribution to building a more resilient and equitable future.