Four companies with operations in Bermuda have contributed seed funding to back a non-profit organisation launched to empower at-risk communities to build climate resilience through effective insurance solutions.

Howden led insurers to establish Humanity Insured and has contributed seed funding.

The UK and US non-profit has also received seed funding from Bermudian-based Hiscox and island-headquartered The Fidelis Partnership, as well as from Munich-headquartered Allianz, which has operations on the island, Tokio Marine Kiln, and Beazley.

The mission of Humanity Insured is to drive funding for insurance protection for the 3.6 billion people living on the climate crisis front line. It has made a 2024 Commitment to Action with the Clinton Global Initiative.

Humanity Insured said the threat of climate shocks destabilised lives, forcing those at risk into survival mode as financial assistance came too late, if at all. Satellite triggered insurance money gets to where it is needed fast, preventing disasters from becoming crises.

It provides self-reliance and confidence for people to focus on the future, spurring investment in education and climate-resilient farming techniques.

Charlie Langdale, chief executive of Humanity Insured, said: “Humanity Insured will not only stop families adopting negative coping strategies after climate shocks, but by being financially prepared, the most unprotected are able to pre-emptively manage the climate risks they face.”

Humanity Insured’s board, with experts in development, finance and climate, has approved three grants for communities in East Africa and the Pacific.

The United Nations High Commissioner for Refugees, the UN Refugee Agency, will partly fund drought insurance for Malawi’s growing season. It will also help make the most productive use of the limited land available.

Emma Cherniavsky, chief executive, UK for UNHCR, explained: “In a world where displaced people are among the most vulnerable to climate change and locked out of financial systems, Humanity Insured plays a crucial role in providing innovative insurance protection that empowers these communities to rebuild their lives with dignity and hope.

“Supported by Humanity Insured’s leadership and expertise in this space, we hope to expand equitable access to this essential insurance as part of UNHCR’s global humanitarian work, strengthening the resilience of displaced communities against climate-induced crises.”

Humanity Insured has also made a grant to help One Acre Fund, a social enterprise operating in East Africa, to subsidise an agricultural insurance programme for more than 200,000 Kenyan smallholders.

In the event of poor harvests, the insurance provides cash for household necessities and agricultural materials for the next planting season.

One Acre Fund board member Joel Ackerman said: “Over 90 per cent of smallholder farmers – who represent 84 per cent of farms worldwide – remain uninsured and face poverty traps due to more frequent and severe climate shocks and the lack of available tools to mitigate them.

“With assistance from Humanity Insured we can create a robust safety net for Kenyan smallholders, allowing them to invest in their farms, secure in the knowledge that they are protected from the unpredictable economic impacts of climate change. This creates financial resilience, stability and strengthens global food security.”

Humanity Insured has also made a grant to Mama Bank, the first women’s micro bank in the Pacific, to subsidise insurance protection that delivers rapid financial relief to small businesses and farmers — 80 per cent of whom are women — impacted by drought and excessive rainfall. This is the first insurance intervention of this kind in Papua New Guinea.