O Urban Infrastructure Insurance Facility (UIIF) This is an initiative implemented by ICLEI – Local Governments for Sustainability – to support cities in Latin America and the Caribbean in the financial management of climate and natural disaster risks. The program assesses the exposure of critical infrastructure and vulnerable populations and develops insurance solutions adapted to the reality of each municipality. Its central mechanism is a "risk pool" – a collective risk-sharing model among cities – which expands access to more affordable coverage and speeds up the release of resources for post-disaster reconstruction.

Products developed:

• Climate and natural disaster risk assessments by municipality;
• Structuring insurance products for urban infrastructure;
• Modeling and operationalizing the collective risk-sharing mechanism (“risk pool”);
• Legal and technical support for contracting and managing municipal insurance;
• Climate finance strategies and urban resilience;
• Tools for protecting critical infrastructure and vulnerable populations.

Key results:

• The goal is to form a pool of up to 10 cities from Latin America and the Caribbean;
• Potential coverage for more than 7.5 million vulnerable people in the region;
• Structuring up to 100 million euros in combined insurance products;
• Expanding cities' access to international climate finance;
• Reducing municipal financial exposure in the post-disaster period;
• Consolidation of innovative urban insurance models in Latin America and the Caribbean.

Implementation period: in progress

Funders: KfW Development Bank; German Federal Ministry for Economic Cooperation and Development (BMZ)

Implementing organizations: ICLEI – Local Governments for Sustainability

Territories where it was implemented: 

• Acapulco de Juárez (Mexico); 
• Belo Horizonte (Brazil); 
• Benito Juárez (Mexico); 
• Buenos Aires (Argentina); 
• Curitiba (Brazil); 
• Mérida (Mexico); 
• Porto Alegre (Brazil); 
• Recife (Brazil); 
• Reynosa (Mexico); 
• Tegucigalpa (Honduras)