Dominican Republic secures parametric insurance, assisted by IDF, UNDP, and BMZ

The Dominican Republic has become the first country in Latin America and the Caribbean to fully integrate parametric insurance into its adaptive social protection system, utilising a solution developed by the Tripartite Agreement, a public-private partnership between the Insurance Development Forum (IDF), UNDP, and Germany’s BMZ via the InsuResilience Solutions Fund (ISF).

The solution will reportedly cover 3,030 climate-vulnerable households that are enrolled in the Supérate conditional cash transfers programme across Santo Domingo Norte and Puerto Plata, providing rapid financial support to households during extreme rainfall or wind events.

Moreover, the policy was activated on June 15th, 2026, and was announced at the Hamburg Sustainability Conference (HSC).

Implemented by the Dirección de Desarrollo Social Supérate (DDSS), United Nations Development Programme (UNDP) and the IDF, the initiative also brings together a wave of public, private and development sector expertise.

The insurance product was designed by an IDF consortium comprising Guy Carpenter Mexico, AXA Climate, Blue Marble, and CelsiusPro, and local insurer Seguros Reservas, co-financed by the IDF consortium members and the InsuResilience Solutions Fund (ISF).

Furthermore, the IDF explained that the product will provide the Dominican Republic with financial protection against climate-related hazards through a parametric mechanism that automatically triggers payouts when predefined thresholds for excessive rainfall or strong winds are met.

The IDF also noted that payouts will be based on independently verified satellite and meteorological data, instead of post-disaster damage assessments, which ultimately allows for affected households to receive support more quickly when they need it most.

Mayra Jiménez, who serves as Director General, (DDSS) of the Dominican Republic, presented the solution at an event hosted by Supérate in Santo Domingo on June 9th

Speaking at the event, she said: “This insurance provides an additional layer of protection for households that are most exposed to the impacts of climate-related events. Its value lies in the speed and timeliness with which the State’s response can be translated into tangible support when families need it most.”

Speaking at the HSC, Ivana Živković, UN Assistant Secretary-General and Director of the UNDP, Regional Bureau for Europe and the Commonwealth of Independent States, said: “Protecting people when climate disasters strike is at the heart of this initiative. By building insurance into the Supérate social protection programme, the Dominican Republic has combined innovation, financial protection and social inclusion to help vulnerable households recover faster from climate shocks. The Dominican Republic’s approach offers a scalable model that can help shape the future of climate resilience around the world.”

Birgit Pickel, Director-General for Sustainable Development and Climate at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), added: “Climate resilience requires systems that can anticipate and manage risks before disasters occur. The Dominican Republic is demonstrating how partnerships between governments, development institutions and the private sector can build these systems and strengthen resilience where it matters most — among vulnerable households.”

Importantly, the IDF also highlighted how the initial phase of this parametric insurance model marks an important step and development towards an adaptive and anticipatory social protection system.

By combining smart public policy, innovative finance, and strategic partnerships, the initiative offers a practical model for bolstering resilience and protecting vulnerable households in the face of increasing climate risks.

Ivo Menzinger, Chair of the IDF Operating Committee, said: “This step by the Dominican Republic demonstrates how countries can harness the capabilities of the insurance industry to strengthen preparedness ahead of disasters – protecting lives, safeguarding fiscal stability, and supporting long-term development objectives. By leveraging innovative insurance solutions and advanced technology, the product delivers financial protection tailored to the country’s needs.”

Dr. Annette Detken, Head of the InsuResilience Solutions Fund, added: “This initiative highlights the important role that innovative insurance solutions can play in strengthening social protection systems and helping vulnerable households recover more quickly from climate-related shocks. We are proud to support a solution that demonstrates how greater resilience can be enhanced at scale in the Dominican Republic and beyond.”