The Challenge
Climate events in India are becoming increasingly frequent, placing a disproportionate burden on low-income communities that depend on daily wages. Over 80% of India’s population is at high risk of climate-induced disasters such as floods, droughts, and heatwaves. Beyond the loss of income, these shocks severely impact health—heatwaves drive spikes in heat stress and cardiovascular illness, floods increase the spread of waterborne diseases, and disrupted food supplies worsen malnutrition. While government-led adaptation and relief measures exist, they often take time to mobilize, leaving vulnerable households exposed to cascading risks that deepen cycles of poverty, poor health, and inequality.
Blended Finance in Action
TBFC, on behalf of a large global philanthropy, explored blended finance opportunities to strengthen healthcare systems and protect vulnerable communities from climate risks. Through consultations, research, and market assessments, we identified parametric insurance as a promising solution to support households and state governments in managing financial recovery and safeguarding health after climate disasters. Unlike traditional models, parametric insurance provides rapid, pre-agreed payouts triggered by measurable events such as heatwaves or floods—ensuring timely resources for healthcare access, nutrition, and recovery. Philanthropy has a catalytic role to play by de-risking early-stage pilots, subsidizing premiums, and funding product design, which can unlock private sector participation and scale impact.
To advance this agenda, TBFC also convened private insurance companies, government representatives, and global and domestic philanthropies to gather insights, and explore potential co-funding partnerships.
