Financial Management and Policy Planning for Risk Financing: A Comprehensive Architecture towards Resilience
March 2024 – August 2024

Project Overview

UNDP leads technical support to governments developing integrated national financing frameworks (INFFs) in more than 85 countries. Through these INFFs, ministries of finance and planning are putting in place strategies for financing medium-term sustainable development priorities and building a more sustainable financing architecture at the national level. These financing strategies provide an opportunity to mainstream the consideration and management of risk in the centre of finance policymaking at the national level. UNDP also has dedicated work to support governments with developing and strengthening climate policy and action, including through their National Adaptation Plans (NAPs) and Nationally Determined Contributions (NDCs). 

 The collaboration between the insurance industry and the development sector has grown significantly over the last five years. Key initiatives, such as the Insurance Development Forum, InsuResilience Global Partnership and the Ocean Risk and Resilience Action Alliance, have evolved into significant policy and standard setting partnerships, bringing together countries, the development sector, and the private and mutual/cooperative sectors of industry. Increasingly, these partnerships are moving beyond policy to programming, with a strong focus on not only delivering insurance and risk financing solutions to countries and communities, but also on long-term transformational change of insurance markets. UNDP’s growing work in this space has led to the creation of the Insurance and Risk Finance Facility (IRFF). Located within the SFH, the IRFF is a flagship initiative dedicated to supporting UNDP Country Offices and country partners worldwide. Its work covers a range of critical areas where risk transfer solutions and collaboration with the industry can add significantly to delivering on the SDGs. Covering inclusive insurance, sovereign risk financing, insurance investments, natural capital, health, SME development and more, the IRFF develops and delivers insurance solutions and works with partners to transform insurance markets by working on legislation, regulation and institutional capacity in countries and communities. 

The INFF Facility was launched in 2022 as a vehicle to support countries developing INFFs. It brings together UNDP, UNDESA, UNICEF and the OECD and provides technical support, facilitates exchange and access to technical guidance and knowledge, and builds partnerships to support the implementation of country-led INFFs. The main goal of this project is to strengthen the financial management of disaster risk financing and to integrate risk financing into key financing policies, through INFFs where countries are using the approach.