BIOFIN and UNDP's IRFF Recognize Two Insurance Solutions Focused on Agricultural Sustainability and Nature Protection

Mexico City, November 19, 2024 - The Insurance and Risk Finance Facility (IRFF) and the Biodiversity Finance Initiative (BIOFIN) of the United Nations Development Programme (UNDP) in Mexico hosted the Pitch Day and award ceremony for the 2024 Innovation Challenge in Insurance for Agriculture and Nature. This event aimed to showcase the six insurance solutions developed by the selected teams, focusing on agricultural sustainability and nature protection. From these, two winning initiatives were selected. 

The lead-up to Pitch Day was both rigorous and enriching. Following an open call that attracted proposals from companies, financial institutions, and civil society organizations, six solutions were shortlisted—three in the agriculture category and three in the nature category. During the call, more than 80 participants from the sector received training on design thinking for inclusive and innovative insurance development, global insurance solutions for biodiversity protection, the Biodiversity Capital Index developed by Mexico’s National Commission for Biodiversity (CONABIO), and the Kunming-Montreal Global Biodiversity Framework. 

The six selected teams underwent an incubation phase, where they benefited from 10 hours of specialized mentorship with experts in innovation, parametric insurance, and business models in the insurance sector. This guidance helped them refine their proposals before presenting them to a Technical Evaluation Committee during the final event. 

At Pitch Day, the six projects presented their solutions to the committee, facing a rigorous evaluation process. After deliberation, two projects stood out for their innovation and transformative approach and were named winners by Daniel Vargas, UNDP Deputy Resident Representative in Mexico. Over the coming months, the two winning solutions will receive financial and technical support from UNDP Mexico to bring their solutions to market. 

In the agriculture category, Luxelare presented a multi-risk parametric insurance solution that leverages satellite and meteorological data to support small-scale farmers. This scalable digital solution not only mitigates climate risks but also promotes regenerative agricultural practices and offers tailored technical assistance. 

In the nature category, Banfin Ecosocial and Dextera excelled with a proposal to create a Habitat Protection and Biodiversity Fund. This mechanism will finance the conservation and restoration of priority ecosystems, implement projects to protect endangered key species, and issue biodiversity bonds—an innovative tool to attract investments and ensure the sustainability of their initiatives. 

“For UNDP, promoting innovation in the insurance and biodiversity protection sectors is not just an activity; it is a commitment to sustainable development and the resilience of the most vulnerable communities and the ecosystems essential for our survival. Count on us as an ally on this journey,” concluded Mr. Vargas. 

The event, aligned with UNDP’s efforts to achieve the Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework, underscored the importance of these solutions in transforming insurance markets and addressing global challenges such as climate change and biodiversity loss. Closing the event, the organizing teams celebrated the participants' commitment and their contribution to building a more resilient and equitable future.