Consulting Services, Development and Implementation of a Parametric Insurance Product

Brief description of the Contract:

Program Objective:

The objective of the program is to finance climate protection and adaptation investments in WAEMU member countries through loans covered against natural disasters (PACAN/SRL). It is envisaged that the loans will be extended via the West African Development Bank (BOAD). The target group is the poor population of the WAEMU member states affected by natural disasters and thus benefiting from investments in climate protection and adaptation as well as emergency aid and reconstruction measures in the event of natural disasters. The intermediaries for the target group are the governments of WAEMU member states, which receive PACAN/SRL through BOAD for climate protection and adaptation investments.

In an initial phase, KfW Development Bank, on behalf of and for the account of the German Federal Ministry of Economic Cooperation and Development (BMZ), plans to provide the BOAD a Financial Cooperation (FC) grant to develop an insurance product / programme as well as to subsidize interest rates and insurance premiums for PACAN/SRL. It is envisaged that additional funds will be made available in a consecutive phase to expand the project.

Requested Services:

Against this background, it is planned to commission an external expert (Consultant) for the (1) product development of a parametric insurance product / programme whose payout is linked to the occurrence of climate events with high negative effects for the affected population, but not to a certain asset class and (2) its implementation by means of an international public tender. The public tender is carried out by KfW on behalf of the BOAD. KfW is supported by a Tender Agent. The contract with the Consultant is signed between the Consultant and the BOAD, represented by KfW.

The Services requested under this assignment are divided in three phases:

• Phase 1: Identification of pilot partner countries (Pipeline) and preliminary product design
• Phase 2: Product design fine-tuning and structural set up of product design
• Phase 3: Implementation of Product (Option)