Risk and Resilience: The Role of Insurance in Climate and Debt Solutions

TMP and the European Climate Foundation are excited to share the details of an upcoming event titled, ‘Risk and Resilience: The Role of Insurance in Climate and Debt Solutions.’

Thematic focus:
Many developing countries are facing unsustainable debt burdens, worsened by external shocks such as the COVID-19 pandemic and volatile commodity prices. Compounding these challenges is the rising toll of climate change, with both rapid-onset disasters—like floods, wildfires, and hurricanes—and slower-onset events such as heatwaves causing significant damage. In response, governments are often forced to borrow heavily to finance emergency relief and reconstruction, deepening their debt and diverting resources away from essential long-term development investments in health, education, and infrastructure.

This convergence of climate vulnerability and fiscal stress has created a dangerous feedback loop. As climate risks rise, developing nations face higher borrowing costs and tighter liquidity, limiting their ability to invest in resilience measures that could break this cycle.

TMP is working to address this systemic challenge by developing innovative mechanisms. This includes the newly developed Climate Sovereign Payment & Risk Coverage (CSPARC) model—a risk pooling mechanism intended to provide anticipatory liquidity and targeted debt relief via insurance payouts. These efforts aim to unlock the fiscal space countries need to prepare for and respond to climate shocks.

During the event, TMP’s founder, Lou Munden will present an updated version of the CSPARC model. Alongside this core presentation, the event will explore alternative solutions to the debt-climate crises and feature a guest speaker (to be confirmed) with expertise in this space.

Aims/Objectives:

The event has three key aims:

1. To highlight emerging developments in the debt and climate risk space, bridging current gaps and laying the groundwork for effective responses.
2. To gather insights from experts, helping to refine TMP’s approach and identify alternative pathways.
3. To identify the additional data, analysis, and modeling needed to develop a targeted mechanism for improving climate resilience and fiscal stability in developing countries.

The target audience includes experts from the debt, insurance, NGO and finance sectors, particularly those working in government budgeting, reinsurance, investment, and disaster relief. Invitations will also be open to staff from ministries of finance in Europe and developing countries most affected by escalating climate shocks.

If you are interested in attending, please contact maisie.morris@asktmp.com. Please note that spaces are limited, and invitations will be formally extended on a case-by-case basis.

Workshop Details:

Date: Friday, 27 June 2025
Time: 13:00 – 16:00 BST
Location: The Old Library, Lloyd’s of London, One Lime Street, London, EC3M 7HA, UK

Agenda:

13:00 – 13:30: Welcome and Introductions
A brief welcome by ECF and TMP, outlining the workshop objectives and agenda followed by quick participant introductions.

13:30 – 14:00
Guest Speaker: To Be Confirmed
A presentation on current perspectives and policy innovations at the intersection of debt and climate risk.

14:00 – 14:30
Break

14:30 – 15:00
Presentation by Lou Munden (TMP)
An overview of the refined CSPARC model, including updates based on previous feedback and new simulation insights.

15:00 – 16:00
Focus Group Discussion
An interactive session to gather feedback on TMP’s model and communication strategy, as well as explore alternative approaches to sovereign finance and climate resilience.