FCDO announces additional £3m funding for the Natural Disaster Fund Technical Assistance Facility
The Natural Disaster Fund (NDF), a blended risk transfer vehicle designed to mitigate climate-related challenges and build resilience for low-and-middle-income countries, has been successfully sponsored by FCDO the since 2018
The FCDO today committed a further funding envelope of GBP£3 million to the NDF Technical Assistance Facility
The expanded funding for the NDF Technical Assistance Facility will allow the NDF to support the development of another round of 10-15 high-impact risk transfer projects affecting low-and-middle-income countries until 2030
LONDON, 25 June, 2026 - The Foreign, Commonwealth & Development Office (FCDO) today announces the commitment of a new funding envelope of GBP£3 million to the Technical Assistance Facility (NDF TA Facility), operated by the Natural Disaster Fund (NDF), a blended risk transfer vehicle designed to mitigate climate-related challenges and build resilience for low-and-middle-income countries.
The expanded funding for the NDF TA Facility will allow the NDF to support the development of another round of 10-15 high-impact risk transfer projects seeking to help climate-vulnerable communities and businesses until 2030.
Reflecting the FCDO's long-term commitment to enhancing climate resilience in the Global South, the expanded funding for the NDF TA Facility and its associated projects will enable the NDF to achieve wider engagement in the Climate and Disaster Risk Finance and Insurance (CDRFI) landscape.
“The recent payouts of USD$662 million to Jamaica in response to Hurricane Melissa show the value of pre-arranged finance both for the immediate response but also for reconstruction and longer-term stability,” said Baroness Chapman, the UK’s Minister for Development. “That is why the UK is working with the multilateral development banks and insurance industry to scale pre-arranged finance and strengthen disaster responses. This will help develop insurance solutions that work for people in climate-vulnerable countries – driving more confident investment, resilient financial systems, and stronger, more stable growth.”
The FCDO, alongside Germany’s development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), was the founding public partners of the NDF in 2018 and 2020 respectively, with an initial capitalisation of approximately USD$70 million in risk capacity. Since 2020, the NDF has shared risks with private sector reinsurer, Hannover Re, and has today announced that MS Amlin will also join the NDF as an additional private sector risk capacity provider.
“This additional funding from the FCDO is a tribute to the continued successes of the NDF,” said Angus Kirk, Chief Executive Officer at Global Parametrics. “Climate and natural catastrophe risks have a disproportionate impact on low-and-middle-income countries. A significant lack of insurance coverage in these countries hinders their ability to recover and build resilience against catastrophic climate events and is a significant constraint to their economic growth and prosperity.”
“Public-private partnerships, such as between the NDF, the FCDO and the KfW, play a crucial role in combining expertise and resources to help foster global knowledge sharing, innovation and long-term resilience-building efforts.”
The full NDF Impact Report 2025 has been published today and can be read here: https://www.naturaldisasterfund.com/ndf-impact-report-2025
About the FCDO
The Foreign, Commonwealth and Development Office (FCDO) leads the UK’s diplomatic, development and consular work around the world. FCDO is a ministerial department, supported by 10 agencies and public bodies.
For more information visit: https://www.gov.uk/government/organisations/foreign-commonwealth-development-office
About CelsiusPro Group
CelsiusPro Group is a technology-driven underwriter that provides climate and natural catastrophe insurance using satellite data to automatically pay out when natural catastrophes and extreme weather hit. Our platform solutions integrate climate data and risk modelling which enable insurance companies and brokers to distribute and manage tailored parametric insurance.
In 2023, CelsiusPro Group acquired Global Parametrics, a parametric risk transfer provider that supports natural disaster resilience for climate-vulnerable communities. Global Parametrics mobilises risk capacity to underwrite parametric coverage through dedicated structures, which are backed by AA-ratings reinsurers.
Through our consulting services, CelsiusPro Group provides end-to-end insights via climate risk assessments and disaster risk financing strategies, as well as structuring and risk modelling for insurance initiatives.
CelsiusPro Group advances parametric risk transfer from the fringes to the forefront in climate and natural catastrophe protection.
Learn more: https://www.celsiuspro.com/
About the Natural Disaster Fund
The NDF is managed by Global Parametrics, a CelsiusPro Group subsidiary, and is capitalised by commitments from the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Their public investment is blended with matching risk capacity from Hannover Re and MS Amlin.
CelsiusPro Group’s work focuses strongly on supporting vulnerable communities in the Global South, where climate-related disasters are increasing in frequency and severity. This involves industry partnerships with leading global insurers such as Hannover Re and Canopius as well as public-private partnerships through the Natural Disaster Fund (NDF).
Learn more: Natural Disaster Fund | Discover Climate Resilience Solutions
Media contacts
Tavistock (CelsiusPro Group)
Kuba Stawiski / Grace Cooper
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