The missing link
Emerging markets require an estimated $3-4 trillion annually in SDG-investments over the next 15 years. The public sector will further increase the cooperation with the private sector in order to close the funding gap.
Blended finance structures are one of the main instruments to mobilize private investments in SDG projects. sfr-consulting transfers this business model into the insurance eccosystem where a much higher leverage can be achieved.
The Ratio
The limited amount of bankable SDG projects bears the risk that private capital will be crowded out by public investments. To eliminate this risk sfr-consulting designed innovative risk transfer solutions ensuring an effective use of public funds by mobilizing the maximum influx of private capital.
Insurance operates on the principles of leverage where a minimum of employed risk capital protects a multiple of sums insured. We have designed various risk transfer solutions which enable development finance insitutions, donors and other parties to participate in the insurane ecosystem as active risk taker.
sfr-consulting acts hereby as enabler and faciltator to ensure that risk transfer solutions and projects covered hereunder are aligned with the risk takers eligibility criteria and risk appetite.
Our Approach
We are focussing our activities on the following three areas:
- Risk Consulting: We bring in our expertise in Technical Assistance Programs or other consulting activities.
- Risk Transfer Solutions: We act as agent for the public sector to manage their risk capital investments in innovative insurance structures.
- Intermediary: We engage with the insurance and reinsurance sector to allocate additional risk capacity in the risk transfer structures we are managing.
Our approach is to act as facilitator to combine public and private investments in the insurance sector in an innovative way.