UNCDF invites applications from licensed firms/organisations/institutions that can establish a dedicated Insurance Hub in Tuvalu that will develop, distribute, and manage parametric insurance products designed to mitigate the financial risks associated with climate change and natural disasters. The hub will cater to local individuals, businesses, and the government, providing quick and affordable financial relief in the event of predefined climate events. By doing so, the hub aims to enhance Tuvalus economic resilience, promote financial inclusion, and reduce dependency on external aid during times of disaster. Based on UNCDF’s commitments in Tuvalu to develop Climate and Disaster Risk Finance and Insurance (CDRFI) solutions to protect vulnerable communities from the impacts of climate disasters while building financial resilience, UNCDF is looking to on-board an aggregator partner that will carry out the following activities:  Risk Profiling and Regulatory Requirements: ·       Conduct a needs assessment and risk profiling to identify Tuvalu’s climate risks (cyclones, droughts, etc.) and develop a risk profile report for the country.  ·       Organize consultations with key stakeholders (government, businesses, community groups, international organizations) and produce a stakeholder engagement report summarizing their inputs and recommendations.   Creation of a Legal and Regulatory Framework: Collaborate with the Government of Tuvalu to create the necessary legal and regulatory infrastructure to facilitate the functioning of an insurance hub, including compliance with national laws and alignment with international insurance standards. Institutional Setup of the Insurance Hub: Hub Establishment:  Set up a fully operational insurance institution in Tuvalu, including offices, digital platforms, and staffing to administer parametric insurance products. The hub will act as the central coordinator for all insurance-related activities. Capacity Building: Train local personnel, government officials, and community representatives in the management and distribution of parametric insurance products. This includes training on insurance operations, risk assessment, and customer support. Development and Design of Parametric Insurance Products: Risk Assessment: Conduct a thorough risk analysis to identify the primary natural disaster and climate risks faced by Tuvalu, such as tropical cyclones, storm surges, sea-level rise, and droughts. Use this data to determine the specific parameters that will trigger insurance payouts (e.g., wind speeds, rainfall levels, sea height). Product Customization: Design parametric insurance products that are affordable, accessible, and easy to understand for different segments of the population, including low-income households, businesses, and the government. Policies will be tailored to cover specific climate risks based on the risk assessment. Reinsurance Partnership: Collaborate with regional and international reinsurers to back parametric insurance products, ensuring financial security and the ability to cover large-scale payouts after major disasters. Distribution and Accessibility of Insurance Products: Digital Platform Development: Build an accessible digital platform where citizens, businesses, and government entities can purchase parametric insurance products, file claims, and receive payouts. The platform should have low-data requirements to cater to Tuvalu’s connectivity challenges. Local Distribution Network: Establish a network of local insurance agents or partnerships with community-based organizations, microfinance institutions, and cooperatives to help distribute insurance products and provide support to policyholders. Awareness and Outreach Campaigns: Launch nationwide campaigns to educate the population about the importance of parametric insurance and how it works. This includes holding workshops, radio broadcasts, and information sessions in local languages to ensure widespread understanding.   UNCDF Procurement Unit