Development of Coastal Ecosystem Insurance Programmes in Mozambique and Egypt

Background:UNDP’s Insurance and Risk Finance Team, (https://irff.undp.org) housed within the Sustainable Finance Hub’s Private Finance portfolio, is building countries’ long-term financial resilience to an evolving risk landscape. Currently active in 39 countries, the Insurance and Risk Finance team is working with over 100 public and private partners, facilitating tailored financial protection solutions for the public sector, households, smallholder farmers, small businesses and nature. The team is creating the right environment for sovereign, sub-sovereign and inclusive insurance solutions to scale, working with governments to develop supportive insurance regulations and policies, and building the capacity of local industry to develop inclusive products, services and distribution channels. The insurance and risk finance work contributes to the Sustainable Finance Hub’s public, private and global policy portfolios, with the team also providing technical assistance to help governments integrate risk finance and insurance into all aspects of public financial planning and management.As part of its Insurance for Nature workstream, IRFF is supporting the development of innovative insurance and risk finance solutions that protect and restore natural ecosystems while strengthening community resilience and enabling sustainable economic development. Mozambique’s coastal ecosystems, particularly mangroves, are highly exposed to climate-related risks such as cyclones, flooding, and coastal erosion, leading to environmental degradation and economic losses for vulnerable communities. At the same time, there is limited availability of financial instruments that provide rapid and predictable financing for ecosystem restoration and livelihood recovery. Similarly, Egypt’s coastal ecosystems, particularly coral reefs, are increasingly exposed to climate-related and human-induced pressures such as coral bleaching, storm events, pollution, and unsustainable coastal development, result