Insurance innovation challenge to protect investments in biodiversity in Colombia
Insurance innovation challenge to protect investments in biodiversity in Colombia
POSTED 24 September, 2024
UNDP Colombia, in collaboration with Fasecolda and Banca de las Oportunidades, has implemented the second Biodiversity and Insurance Innovation Challenge, an initiative aimed at promoting the creation and development of insurance products that protect biodiversity in Colombia.
Twenty organizations participated in the challenge, including insurers, reinsurers, microfinance companies, conservation organizations and other key players in the sector. These organizations formed six teams that presented proposals to promote the sustainability and resilience of ecosystems and communities.
Two proposals were chosen as having the most potential. First place went to the team formed by Previsora Seguros, South Pole, AON, Banco Contactar and Pipra, with a proposal called NatInsure. This innovative solution is designed to ensure the results of investments in conservation projects, habitat banks and protected areas, guaranteeing benefits for local communities and helping to mitigate human-wildlife conflicts. The initiative will have the opportunity to participate directly in UNDP's Insurance Innovation Lab, in coordination with UNDP’s Insurance and Risk Finance Facility (IRFF), BIOFIN and the Accelerator Lab, and will receive technical assistance in structuring, designing and implementing the prototype.
Second place was awarded to the team formed by Seguros Sura and WWF, which put forward the Water Insurance initiative, a preventive parametric insurance scheme that seeks to protect páramo ecosystems against fires. This team will receive capacity-building, including specialized training opportunities in topics relevant to the conservation and insurance of biodiversity investments.
The two winning initiatives will be presented at the Fasecolda Side Event on Friday, 25 October 2024, during COP16 on Biodiversity in Cali.
The jury members were:
Diego Olarte, BIOFIN Coordinator
José Luis Marulanda, Sustainable Finance and Business Models Specialist at The Nature Conservancy Colombia (TNC)
German Romero, CEO at Diorama
Carla Mosquera, Leader of the Biodiversity Finance Lab at the Humboldt Institute (IAvH)
Alexandra Sánchez, President of the Society of Actuaries of Colombia
Laura María Santa, financial sector expert.
The evaluation criteria considered each proposal’s risk management strategy, adaptation to the profile of the user or natural asset, technical feasibility, commercialization viability, level of development and scalability potential.
These initiatives focused not only on protecting ecosystems, but also on supporting the communities involved. The teams took a creative approach to the challenges of securing biodiversity, proposing solutions that go beyond protecting investment in environmental projects, encouraging the restoration and sustainable use of natural resources, thus generating a long-term positive impact on biodiversity conservation.
More about the Innovation Challenge in Colombia
Six teams participated in this challenge, becoming pioneers in the development of biodiversity insurance in Colombia: (1) Previsora Seguros - South Pole - Pipra - Aon - Banco Contactar; (2) SURA - WWF; (3) SBS - Valopes - Bancamia - Green Seguros; (4) SURA - HC Asesorías Ambientales - Centro de Investigación para el Desarrollo Sustentable; (5) Green Seguros - Zurich - Universidad ICESI - HC Asesorías Ambientales; and (6) Micro - AXA - WCS -Innovakit - Amor Perfecto.
Likewise, allied entities participated as mentors and thematic experts and supported the process, contributing to the design of comprehensive solutions and considering key challenges in terms of effectiveness and sustainability. Their contribution is also highlighted and appreciated.
This innovation challenge has demonstrated the power of collaboration between different sectors and through innovative insurance solutions, which seek not only to reduce the risk for green investments, but also to make a significant contribution to the sustainability and resilience of ecosystems, communities and productive activities that depend on biodiversity in Colombia.